Italy’s New Tax Wipes Out $10 Billion From Market Value of Banks

Italian stocks dropped after a surprise new tax on bank profits sent the country’s lenders tumbling, erasing €9.3 billion ($10.2 billion) from their combined market capitalization. A surge by drugmaker Novo Nordisk to a record high helped cap declines in the broader European index.

Italy’s FTSE MIB fell 2.1%, with UniCredit SpA dropping 5.9% while Intesa Sanpaolo SpA sank 8.7%. The Stoxx Europe 600 index declined 0.2% by the close in London. Novo Nordisk jumped after a highly anticipated study showed that its Wegovy obesity treatment reduced the risk of heart attacks and strokes. The company is now closing in on LVMH as the biggest European ...