MILAN May 30 European shares fell in early
trading on Tuesday with all major sectors in the red though
banks led the decline on fresh political jitters and following a
downgrade by a top global broker.
The pan-European STOXX 600 index fell 0.6 percent
and the euro zone blue chip index declined 0.7
percent, while Britain's FTSE also fell 0.5 percent as
it reopened following a long weekend.
Banks were the biggest sectoral fallers,
down more than 1 percent, after Deutsche Bank cut its rating on
the sector by one notch to "underweight".
Strategists at the German bank said the sector was among the
most sensitive to swings in euro area growth, which they expect
will fade, and that valuations are no longer compelling.
Italian banking shares, on the retreat for the past two
sessions on worries over early elections, were among the top
losers again on Tuesday. Unicredit fell more than 2
In the UK, shares of British Airways-owner IAG fell
4 percent on the first day of trading following the massive
disruption to flights due to an IT outage.
(Reporting by Danilo Masoni, Editing by Vikram Subhedar)