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European shares head lower for 4th day, banks lead losses
May 30, 2017 / 7:30 AM / 6 months ago

European shares head lower for 4th day, banks lead losses

MILAN, May 30 (Reuters) - 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 percent.

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)

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