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European stocks drop slightly amid Italy budget concerns

European shares drop amid Italy budget concerns

European stocks showed a slight drop on Tuesday, following gains generated on Monday, as banks led losses amid concerns regarding Italy’s budget deficit.

Euro Stoxx 50, European equity index, fell by 0.64 percent to 3,3244.55, as of 10:18 GMT.

In the meantime, Italy’s FTSE MIB index dropped marginally by 0.7 percent at 20,219.36, according to a media report that Brussels was considering disciplinary measures against Rome as a result of failure to curb debts.

However, automobile companies' shares saw a rise after the Italian-American Fiat Chrysler Group's proposal to integrate with its French competitor Renault to form the world's third largest automobile company.

The price of the Fiat share rose about 0.94 percent at 12.85 and the price of Renault share augmented by 0.80 percent to 55.56 euros.

Spain IBEX 35 fell by 0.72 percent to 9,151, German DAX (GDAXI) witnessed a drop by 0.25 percent to 12,039.56 and French CAC 40 index was not much better than the others witnessed a drop by 0.43 percent at 5,313.01.

The Financial Times (FTSE) 100 in London, which reopened after a long weekend, rose 0.1 percent to 7,274.29.

On Monday, European equities advanced after the results of the European Parliament elections that signaled the failure of right-wing and anti-EU populist parties to win high number of seats.

According to Bloomberg News agency, the initial results of the European elections showed the success of the European major parties in maintaining their status while the anti-European right and populist parties received some 28% of the seats in the European Parliament, which is less than their share of parliamentary seats outgoing.

In the meantime, the dollar index which measures the greenback movements versus a basket of 6 currencies, edged up by 0.13 percent at 97.65.

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