Lenders drag Europe lower

On Tuesday declines in lenders dragged European stocks lower, while the U.K.’s FTSE 100 Index closed at a record for an eighth straight day.

The Stoxx Europe 600 Index fell 0.5 percent at the close, after last week capping its best start to a year since 2013. The FTSE 100 rose 0.4 percent to cap its longest winning streak since May 2013. Its exporters got a boost as the pound slid on concern British Prime Minister Theresa May is planning to pull the country out of Europe’s single market. The FTSE 250 Index of mid-caps, driven higher for 10 consecutive sessions on signs of strength in the U.K. economy, also closed at a record.

Stoxx 600 banks tumbled the most since November, with those in Italy among the worst performers. The FTSE MIB Index posted the biggest decline among western-European markets after data showing Italy’s unemployment at the highest since June 2015 sparked concern about the economy.

The pound was set for its worst three-day drop since October, while the cost of insuring corporate debt against default increased for a fourth day, the longest run since November. A rally in U.K. retailers propelled the FTSE 100 Index toward a ninth straight record close.

Anxiety has crept back into markets in the new year following a burst of optimism that accompanied Trump’s surprise election victory, with investors expressing their concern largely via the currency market. The pound has been hit by angst over the implications of Brexit and the Turkish lira extended its retreat to record lows on speculation the nation’s central bank won’t raise interest rates. Oil rose above $52 a barrel in New York after sinking the most in more than five weeks.

West Texas Intermediate crude added 0.3 percent to $52.28 a barrel after sinking 3.8 percent last session as an increase in U.S. drilling offset signs that OPEC members are sticking to planned output cuts.

This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.