2018.06.0519:03:00UTC+00European Stocks End Lower as Bank Stocks Slump

European stock markets ended lower on Tuesday, weighed down by a decline in banking stocks.

The pan-European Stoxx closed 0.3 percent down with majority of sectors and major exchanges seeing red.

Banking stocks underperformed among equities, with the Royal Bank of Scotland sliding to the lower range of the sector. The lender declined over 5 percent after reports that the U.K. government will sell part of its stake for around 2.6 billion pounds, leading to a loss as it returns the bank back to private ownership following its bailout in 2008.

In other sectors, tech stocks reach a multi-year high on Tuesday. The upbeat sentiment towards tech was bolstered by the record high shares of Apple at the start of its WWDC conference and Microsoft's purchase of software coding company GitHub. Majority of analysts also believe that the sector is far from reaching a bubble and the high valuations are reasonable.

Italy's FTSE MIB was the worst performing index, falling over 1 percent after a speech by the nation's newly appointed prime minister in parliament. PM Giuseppe Conte pledged “radical change” in his speech and said that the anti-establishment government would launch universal basic income and tighten immigration.

Dublin-based company Smurfit Kappa was one of the top worst performers, falling by over 6.4 percent. Traders reacted to a report raising questions regarding a possible takeover from International Paper. WPP also declined almost 3 percent after an analyst from Berenberg said the conditions at the ad firm will worsen before it improves.