European Markets Rise as Trump Tariff Threat Looms
Milan‘s FTSE MIB index climbed 0.21% to close at 42,514, mirroring gains across European markets despite renewed concerns over potential tariffs from former U.S.President Donald Trump. The possibility of increased trade barriers is injecting volatility into global markets, prompting investors to reassess risk.
The market’s resilience comes as Italy’s banking sector experiences mixed results. Banca MPS shares rose 2.48% following the conclusion of its tender offer,achieving 86.33% ownership by Piazzetta Cuccia.However, Mediobanca saw a 2.83% decline in its stock price following the MPS deal.Other banks also faced downward pressure, with Unicredit down 0.98% and BPER Banca falling 2.52%. Intesa Sanpaolo completed a share buyback program, investing €1.51 billion (1.69% of its capital, equivalent to 301 million shares), while Generali edged down 0.03% despite a recent upgrade from Fitch Ratings to ‘AA-‘ with a stable outlook.
Leading the gains were STMicroelectronics (+2.98%), Stellantis (+2.48%), and Cucinelli (+2.23%). Italgas and Triad also saw positive movement, increasing by 1.98% and 1.45% respectively. Lottomatica continued its upward trajectory, rising 0.09% on its second day within the FTSE Mib. Conversely, Leonardo and TIM experienced declines of 1.76% and 1.12% respectively. In the energy sector, Eni fell 0.71% while Enel rose 0.74%.
The potential for new tariffs under a second Trump administration is creating uncertainty for European exporters, particularly those reliant on the U.S. market. Analysts predict continued market fluctuations as the U.S. presidential election approaches and trade policy debates intensify.
