Milan Stock Exchange Plummets Amidst Global Trade Concerns
Milan’s Piazza Affari experienced a significant downturn today, mirroring broader uncertainty in European markets as investors react to political developments in France and escalating trade tensions. The closure follows the resignation of French Prime Minister Sèbastien Lecornu and his government, prompting speculation over President Macron’s next appointment. Simultaneously, a proposed European Union tariff increase on steel imports - potentially reaching 50% – is fueling anxieties about a potential trade war with China.
the FTSE MIB index closed down 1.59%, landing at 42,791 points. This decline impacts investors across Italy and signals a cautious mood as the EU seeks to protect its steel industry from competitively priced Chinese imports by reducing duty-free quotas. While most sectors suffered losses,some stocks showed resilience.Telecom Italia (TIM) rose notably, gaining 3.03%, while energy giants Enel and Eni saw increases of 0.77% and 0.60% respectively.
Ferrari experienced a notably sharp drop, plummeting 15.41% to €354 per share following the presentation of its strategic plan to 2030. Other luxury brands also faced headwinds, with Brunello Cucinelli down 1.08% and Moncler declining by 2%. Industrials generally performed poorly, including Stellantis (-0.92%), Leonardo (-1.28%), and Pirelli (-0.73%). The banking sector also saw losses, with Unicredit (-1.33%),Intesa Sanpaolo (-0.61%), Mediobanca (-1.09%), Monte dei Paschi (-0.67%), and Banco BPM (-0.42%) all registering declines. Insurance companies offered a contrasting performance, with Unipol gaining 0.69% and Generali rising 0.88%.
