European shares inch lower as BAT, banks weigh

(Reuters) – European shares inched lower on Tuesday as declines in UK’s British American Tobacco and banking stocks halted a rally driven by optimism over a global recovery from the coronavirus crisis.

The pan-European STOXX 600 index <.STOXX> fell 0.3% by 0729 GMT, with eurozone banks <.SX7E> down 4.3% after a six-day run of gains.

Dragging London’s FTSE 100 <.FTSE> lower, British American Tobacco fell 2.8% as it cut its annual adjusted profit and revenue forecasts, citing the impact of prolonged lockdowns in South Africa and Mexico.

The European benchmark is still hovering near its early March highs, just 14% below its record high, while Wall Street’s tech-heavy Nasdaq <.IXIC> closed at an all-time high on Monday, confirming a return to bull market.

Healthcare stocks <.SXDP>, technology <.SX8P> and food and beverage <.SX3P> supported markets, rising between 0.6% and 1.6%.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Arun Koyyur)