European stocks traded lower on Tuesday over concerns of military intervention in Syria. Banking and mining were two of the worst performing sectors. The Italian market counties to fall over threats to bring down the government.
Aug. 28, 2013 - TOKYO, Japan -- The Stoxx Europe 600 Index fell 1.8% to finish the day at 299.01, suffering the biggest one day drop since the end of June. A number of factors drove the market down on Tuesday; investors are concern about military intervention in Syria, political unrest in Italy and concerns over tapering buy the US Federal Reserve Bank.
Although the IFO institute state that German business sentiment improved in August to 107.5 this month from 106.2 in July, reinforcing the idea that the country is on pace for recovery, the DAX 30 Index fell 2.3%. In Paris the CAC 40 Index gave up 2.4% and in London the FTSE 100 Index fell 0.8%.
In Rome the FTSE MIB Index declined 2.3% after falling 2.1% on Monday. Concerns are rising in the country over the stability of the government. After being convicted of tax fraud, the Italian senate will vote on whether to expel former Prime Minister Silvio Berlusconi. If he is expelled members of his People of Freedom party have threatened to topple the current government. 7 Banks, which are generally sensitive to risk, were some of the biggest decliners in the British markets on Tuesday. Royal Bank of Scotland Group PLC fell 4.1%, Lloyds Banking Group declined 2.9%, and HSBC Holdings PLC lost 1.3%.
The mining sector also performed poorly, Antofagasta PLC dropped 3.3%, after they reported a 37% fall in pretax profit for the first half of 2013. Rio Tinto PLC fell 2.5%, BHP Billiton PLC face up 1.4% and Anglo American PLC declined 1.8%.