MILAN – European markets experienced a mixed session on Tuesday, with Milan closing higher despite broader concerns stemming from global economic uncertainty and anxieties surrounding the impact of artificial intelligence on key sectors. Trading was subdued with Asian markets closed for Lunar New Year celebrations and Wall Street remaining closed for President’s Day.
The FTSE Mib index in Milan finished the day up 0.76%, reaching 45,764 points. This positive performance was driven in part by gains in banking stocks, particularly Banca MPS and Mediobanca. However, the overall European picture was less clear-cut, with Paris ending up 0.54% and Frankfurt rising 0.8%, while Madrid fell by 1.7% earlier in the day.
The asset management sector continued to face pressure following news that U.S. Startup Altruist has launched AI-powered tax planning functionalities. This announcement triggered a sell-off in brokerage stocks on Wall Street, and the impact reverberated across European markets. Finecobank led the declines, falling 7.8%, followed by Banca Generali (-7%) and Banca Mediolanum (-6.5%). Azimut also saw a drop of 4.3%.
Banks also experienced widespread losses, with the sector index down 2.1%. Unicredit lost 1%, while Intesa Sanpaolo dropped over 2.5%. The concerns surrounding the potential disruption caused by AI are clearly weighing on investor sentiment in the financial sector.
In contrast, Ferrari continued its upward trajectory, rising more than 2% following yesterday’s positive earnings report. Recordati also posted strong results, with 2025 revenues up 11.8% to 2.618 billion euros and net profit increasing 6.5% to 443.6 million euros.
Across Europe, the spread between Italian and German 10-year government bonds closed slightly lower at 61 basis points, with the Italian yield falling to 3.35% and the German Bund yield decreasing to 2.74%. Trading volume on the Milan exchange reached 1.9 billion euros.
Looking at individual company news, Saipem announced an agreement to acquire Deep Value Driller’s offshore drilling unit for $272.5 million, a move aligned with the company’s strategy to strengthen its offshore drilling fleet. Borgosesia shares jumped 19% after Alba, a vehicle controlled by Isa, launched a takeover bid at a price of 0.710 euros per share.
Meanwhile, Warner Bros. Discovery is reportedly considering a counteroffer from Paramount after rejecting an initial bid. Netflix has also entered the fray, offering to acquire Warner Bros.’ film and television studios and the HBO Max streaming service for $72 billion. The ongoing battle for Warner Bros. Is adding to the volatility in the media sector.
Global markets remain sensitive to macroeconomic data and geopolitical developments. U.S. Inflation data, originally scheduled for release today but delayed due to the partial federal shutdown, is now keenly awaited for clues about the Federal Reserve’s next moves. The Zew index on German economic sentiment is also due to be released, providing further insight into the health of the Eurozone economy.
Asian markets presented a mixed picture, with Tokyo closing down 0.42% amid disappointing economic growth data. Australia, however, benefited from gains in the mining sector, rising 0.24%. Gold and silver prices fell on international markets, with gold dropping 1.64% to $4,910.32 per ounce and silver declining 4.85% to $74.19.
The ongoing uncertainty surrounding the impact of artificial intelligence, coupled with geopolitical tensions and economic data releases, is expected to continue to drive market volatility in the coming days. Investors remain cautious, closely monitoring developments for potential opportunities and risks.
