European shares higher on Tuesday
European shares closed higher Tuesday in their second session of gains and the banks’ stock index jumped to its highest level in 11 months with traders going into a buying trend after the Italian Referendum No-Vote early this week.

Italian Banking stocks climbed 9 percent, highest gains intraday since July, on short covering before European Central Bank meeting this week and upon the resignation of the Italian Prime minister Matteo Renzi after the referendum’s defeat.

Italy’s banking index has lost half its value so far this year on fears because of the political instability in the region and how to handle its debts. Monte dei Paschi rose 1.2 percent on expectation of a state bailout of the troubled lender.

Europe’s bank sector index rose 4.4 percent to its highest level since Jan. 14. Gains in banks helped the pan-European STOXX 600 index end up 1 percent.

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