European stocks closed lower on Tuesday as worries heightened over Italy's mounting political crisis.

The pan-European Stoxx 600 closed down 0.68% to 371.30, with the majority of sectors and major bourses in negative territory.

Stocks had earlier made tentative gains, but momentum soon swung to the downside as Italian Prime Minister Giuseppe Conte announced he would resign from the government. It comes after Lega party leader Matteo Salvini pulled the plug on his coalition with the anti-establishment Five Star Movement (M5S).

Italy's FTSE MIB tumbled 1%, hitting the day's low as Conte spoke. Shares of Italian banks Ubi Banca and Banco BPM fell over 2%.

Source: CNBC