(Alliance News) - The Mib is down 2.2 percent in the 27,900 area on Tuesday, extending losses for the sixth session in a row and sharply underperforming other European stock markets, after the Italian government announced a surprise tax on banks' extra profits, putting pressure on the financial sector.

On Monday evening came the green light for the "levy" on banks' extra profits, limited to 2023." The measure, brought to the BoD by Economy Minister Giancarlo Giorgetti, was explained at a press conference by Deputy Prime Minister and Infrastructure Minister Matteo Salvini.

"The revenue will go to help with first home mortgages and tax cuts," the League leader explained, calling the measure a "social equity norm." "We are not talking about a few handfuls of millions but," Salvini stressed, "one can assume a few billion.

The European Central Bank's rate increase "has led to a rise in the cost of money for families and businesses" while "there has not been an equally diligent, quick and important increase for consumers. So in this gap, there will come a 40 percent levy from the multibillion-dollar extra-profits of the banks," he said again, illustrating the rule passed by Palazzo Chigi.

As a result, the FTSE Mib fell 1.6 percent to 27,921.12.

Among the smaller lists, the Mid-Cap is giving up 1.1 percent to 41,417.54, the Small-Cap is down 0.7 percent to 26,691.86, and Italy Growth is in the red 0.5 percent to 8,879.54.

Paris's CAC 40 is down 0.8 percent, as is Frankfurt's DAX 40, which is giving up 0.9 percent, while London's FTSE 100 is down minus 0.5 percent.

On the Mib, among the few bullish performers is Hera, which is advancing 1.6 percent, rearing its head again after seven bearish sessions.

Snam, meanwhile, advances 0.6 percent, with price at EUR4.57 per share, rearing its head after eight bearish sessions.

Banks hurt after the government's "extra profits" initiative. Intesa Sanpaolo is giving up 8.1 percent, FinecoBank is shedding 8.5 percent, and UniCredit is contracting 6.4 percent. On the latter, it should be noted that on Tuesday it reported that, as part of its share buyback program, it purchased just under 4.4 million of its own shares in the period between July 31 and August 4. The weighted average price was EUR22.50, amounting to about EUR98 million.

On the Mid-Cap, among the few bullish performers is Sanlorenzo, which is rallying 1.7 percent, after a 3.7 percent red on the eve of the event.

Also performing well is Alerion, which is stepping up 1.5 percent. The company on Monday bought back 10,667 of its own shares, worth a total of EUR296,000.

Banking companies also give up on this segment, marking a minus 8.6 percent with Credito Emiliano, Banca Popolare di Sondrio down 6.6 percent and Banca Ifis with a more "restrained" 2.9 percent.

Saras, on the other hand, gives up 2.9 percent, bringing its liabilities on a weekly basis to over 12 percent.

Deutche Bank cut its target price on Salvatore Ferragamo to EUR15.50 from EUR18.00. The stock is giving up 0.8 percent.

On the Small-Cap, Cairo Communication is marking a 5.8 percent red, following up eve's red with 3.1 percent.

algoWatt, on the other hand, is giving up 6.8 percent. The stock--which has been missing the ex-dividend since 2016--on the weekly frame marks a loss of nearly 14 percent.

Good buys on Restart, which advances 3.8%, veering to the upside after two bearish releases.

Ratti, on the other hand, advances 3.6 percent, after a 3.1 percent decline on the eve.

Among SMEs, Erredue advances 3.6 percent, following up on two previous bullish sessions.

Confinvest, on the other hand, marks a plus 2.3%, after two sessions closed in the red.

CleanBnB in the rear marks a 6.2% red, after two sessions closed in the green.

In New York on the European night, the Dow Jones advanced 1.2 percent, the S&P 0.9 percent, and the Nasdaq marked plus 0.6 percent.

Among currencies, the euro changed hands at USD1.0970 against USD1.1001 in Monday's European stock close while the pound was instead worth USD1.2731 from USD1.2771 on Monday night.

Among commodities, Brent crude is worth USD84.10 per barrel versus USD85.27 per barrel at Monday's close. Gold, meanwhile, trades at USD1,935.32 an ounce from USD1,933.40 an ounce on Monday evening.

On Tuesday's economic calendar from the US, at 1430 CEST it is the turn of the trade balance, while at 2230 CEST the weekly oil stocks report will be released.

By Maurizio Carta, Alliance News reporter

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