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The pan-European Stoxx 600 index flat during early afternoon deals, with sectors and major bourses pointing in opposite directions.
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Italy's FTSE MIB index was among the worst performers, slipping around 0.5% amid renewed tensions between Rome and Brussels over the country's public finances.
European stocks were mixed Tuesday afternoon, as broad uncertainties over trade and economic growth soured investor sentiment.
The pan-European Stoxx 600 index flat during early afternoon deals, with sectors and major bourses pointing in opposite directions. Italy's FTSE MIB index was among the worst performers, slipping around 0.5% amid renewed tensions between Rome and Brussels over the country's public finances.
Europe's banking index led the losses during afternoon deals, down over 0.4% amid reports the European Commission could hit Italy with a hefty fine for failing to rein in its budget. On Sunday, Italy's Deputy Prime Minister Matteo Salvini said he would use all of his energy to fight what he claimed were outdated and unfair European fiscal rules. His comments came shortly after his far-right Lega Party triumphed in European elections.
Italy's Unicredit UCG-IT , Intesa Sanpaolo ISP-IT and Finecobank FBK-IT were all trading over 1% lower during afternoon deals.
Meanwhile, autos stocks traded up over 1% after Fiat had confirmed it had made a proposed merger with Renault. The deal, if agreed, would create the world's third-largest carmaker. Almost all European autos stocks were trading higher on the news, with PSA Peugeot Citroen leading the gains, up more than 4%.
Looking at individual stocks, NMC Health NMC-GB surged to the top of the European benchmark. It comes after the company upgraded its 2019 guidance and raised its revenue outlook. Shares of the London-listed stock rose over 5%.
On the data front, an indicator of German consumer sentiment fell to its lowest level in two years. The GfK consumer sentiment indicator for June hit a worse-than-expected reading of 10.1 points.
EU election results
Investors in Europe continued to digest results from the EU Parliament elections, which concluded Sunday. Results showed pro-EU parties still managed to hold onto a majority of seats, albeit with Euroskeptic and nationalist parties also gaining momentum.
Experts saw the vote as largely positive , as an uptick in support for Europhile parties like the Liberals and Parties means the European project may not be under threat. The rise in support for populists was less detrimental than previously feared, analysts said.