[BENGALURU] European shares dipped on Tuesday, with bank stocks capturing investors' attention as concerns about a possible fine on Italy due to the indebted country's yawning budget deficit exacted a heavy toll on risk sentiment.
Milan-traded stocks slid 0.5 per cent, with the country's deputy prime minister saying the European Commission could slap a 3 billion euro fine on the country for breaking EU rules due to its rising debt and structural deficit levels.Matteo Salvini's comments sent yields on Italy's bonds broadly higher while pushing the country's banking stocks in the other direction.Italy's banking index dropped 1.2 per cent to its lowest closing level since early February.
Piraeus Bank surged 15 per cent to lead the benchmark's gainers, followed by Eurobank Ergasias SA, with a 9.8 per cent rise.
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