MarketPulse Europe: British Banks Slammed Amid Brexit Drama
Investing.com - The European financial sector was among the worst performers in midday trade on Thursday, as shares of British banks were slammed after UK Brexit Minister Dominic Raab resigned.
The resignation of such a senior minister thrusts the UK into a political crisis just as Prime Minister Theresa May was attempting to garner support for a Brexit deal which her opponents have warned could sink her premiership.
The European banking index (SX7P) was down around 1.6% by 6:38AM ET (1138GMT), having fallen earlier to its lowest since October 31.
In London, Royal Bank of Scotland (LON:RBS) shares plunged more than 7%, on track to record its worst day since the aftermath of the Brexit vote on June 27, 2016. Lloyds Banking Group (LON:LLOY) saw shares drop 5.9%, while Barclays (LON:BARC) was off by about 4.5%.
Italian lenders were also under pressure amid concern over how European Union officials would react to Rome's latest budget proposal. Brussels, worried by the impact of high spending on Italy's high levels of debt, had told Rome to revise the budget or face possible fines.
Banco Bpm SpA (MI:BAMI) shares lost 1.6% and UBI Banca SpA (MI:UBI) declined 1.5%.
Elsewhere across the continent, Deutsche Bank (DE:DBKGn) shares fell 1.3% in Frankfurt, while BNP Paribas (PA:BNPP) was down 1.2% in Paris.
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