European stocks close sharply lower as bank stocks tumble

Paris: Europe's main stock markets closed sharply lower on Monday as the failure of two US lenders triggered concerns about the banking sector.

Milan fell 4.0 percent, Frankfurt 3.0 percent, Paris 2.9 percent and London 2.6 percent, with bank shares slumping.

On Sunday, the US administration took emergency steps to shore up banking confidence, guaranteeing deposits after withdrawals overwhelmed Silicon Valley Bank and closing under-pressure lender Signature Bank in New York.

In Europe, traders dialled back bets the European Central Bank will hike its interest rates by 50 bps on Thursday as it has indicated, and now see a 25 bps hike in May as more likely than a 50 bps move.