European Stocks Rise: Milan +1.3% | Oil & Gas Fall, Gold Steady

European stock markets rebounded sharply midday Monday, following a negative session in Asia and a mixed opening in the United States, as investors assessed the impact of increased global tariffs imposed by former U.S. President Donald Trump following a Supreme Court ruling. Milan’s FTSE MIB index led gains, rising 1.3% by afternoon trading.

The gains across Europe – with Frankfurt up 1.7%, Madrid 1.4%, Paris 1.2%, and London 0.2% – came after an initial period of market uncertainty. The Stoxx 600 index rose 1%. The technology sector saw the largest gains, climbing 2.7%, followed by luxury goods (2.9%) and automobiles (2.4%).

Energy stocks, however, experienced significant declines, falling 3.5% as oil prices plummeted. West Texas Intermediate (WTI) crude oil dropped 7.7% to $90.85 a barrel, while Brent crude fell 8% to $102.02. Natural gas prices too decreased, falling 6.5% to €55.38 per megawatt hour. Despite the decline in energy prices, gold remained below $5,000.

Concerns about a potential resurgence of inflation continued to weigh on sovereign debt markets. The spread between Italian BTPs and German Bunds widened to 86 basis points, with the Italian 10-year yield at 3.83% and the German 10-year yield at 2.97%.

Shares of Diasorin tumbled 12% at Piazza Affari following a negative assessment from Mediobanca analysts. Telecom Italia (TIM) continued its upward trend, gaining 6.39% to €0.61, approaching the €0.635 offer price from Poste Italiane, which itself fell 5.6%. Unicredit and Banco BPM also saw gains, rising 3.9% and 3.7% respectively.

The market’s reaction follows former President Trump’s decision to raise global tariffs to 15% after a recent Supreme Court ruling, a move that sent shockwaves through Wall Street on Friday. The Dow Jones Industrial Average closed down 1.56% and Milan’s FTSE MIB fell 0.7% on Friday, according to reports. The dollar also weakened following Trump’s announcement, while gold reached record highs.