Fresh worries about the outlook for the banking sector drove European shares down by 1% on Tuesday. However, the slide would have been steeper but for a big drop in oil prices and a rally in safe-haven sectors such as drugmakers.
Crude dropped below $136 a barrel as the dollar rose in value and concern faded about the approach of an Atlantic hurricane. That depressed shares in energy companies, including Eni, Total and BP. Banks were the second-worst hit sector.
European equities are now down about 30% since last July’s multi-year highs.