Europe’s Stock Slump: Piazza Affari Struggles, MPS & Iveco Tumble
European Markets Tumble Amid Trump Tariff fears; Gold Surges
European stock markets experienced a downturn Monday, rattled by the specter of impending U.S. tariffs scheduled to take effect Wednesday. Concerns over President Trump’s trade policies also drove investors toward safe-haven assets, boosting gold prices.
European Stock Performance
Major European indices all closed in negative territory:
- The Black shirt (milan) fell 1.72% to 38,072 points.
- Frankfurt’s dax decreased 1.16% to 22,197 points.
- The CAC 40 in Paris dropped 1.58% to 7,790 points.
- London’s FTSE 100 declined 0.83% to 8,587 points.
Individual stocks also reflected the negative sentiment. In Germany, BMW shares fell 3.22%, Mercedes Benz dropped 2.84%,and Airbus decreased by 1.78%. In London, IAG, the parent company of British Airways and Iberia, plummeted 6.62%. Paris saw declines in Louis Vuitton (2.49%) and Pernod Ricard (2.8%).
milan’s FTSE MIB Hit Hard
Milan’s Piazza Affari concluded the week’s first session with the FTSE MIB index losing 1.77%, settling at 38,051 points. The decline followed President Trump’s statement that the forthcoming U.S. tariffs would impact “all countries.” The financial sector was especially affected, with Unicredit down 3.14%, Intesa falling 1.83%, MPS decreasing 4.57%, Mediobanca dropping 3.20%, Ban Bpm down 2.54%, and BPER declining 3.38%.
Shares of Tim rose 0.58% to 0.3108 euros per share, after Posta increased its stake in the telecommunications group to 25%. Poste itself fell 1.35%. Industrial stocks also saw important losses, with Iveco declining 4.86%, Stellantis down 2.10%, and Pirelli decreasing 0.55%. energy stocks fared relatively better; Eni was almost unchanged, Enel fell 0.50%, while Snam bucked the trend with a gain of 0.52%. Terna also performed well, closing at a historic high of 8.364 euros per share, up 0.58%.
BTP/Bund Spread Stable
The spread between Italian BTPs and German Bunds remained relatively stable,closing at 113 points,consistent with the opening value of 113.5 points. The yield on 10-year BTPs stood at 3.863%.
Safe-Haven Assets Gain
Uncertainty surrounding the impending tariffs drove investors toward safe-haven assets, boosting the price of gold and putting downward pressure on the dollar. Markets are on edge ahead of the expected proclamation of new tariffs Wednesday. Details remain scarce,but President Trump indicated the measures would affect all countries.
Gold reached a new high of $3,128.06 per ounce,marking its third consecutive session of record highs.
Euro Under Pressure
The euro weakened against the dollar, despite recording a quarterly increase of approximately 4.5%, its largest gain since the third quarter of 2022, fueled by Germany’s tax revisions. Christine Lagarde, president of the European Central Bank (ECB), stated that the potential implementation of U.S. tariffs necessitates greater European control over its economic future.
While President Trump suggested last week he was open to tightening agreements with countries seeking to avoid tariffs,*The Washington Post* reported over the weekend that he intends to adopt a more aggressive stance. “The generalized rates would be a negative surprise,” Merrill Lynch analysts wrote in a note.
the euro fell 0.3% against the dollar to 1.0791 and rose 0.46% against the yen to 161.51. The dollar declined 0.10% against the Japanese currency to 149.62 yen.
European Market Turmoil: Your Questions Answered
Q: What’s happening in European financial markets today?
A: European stock markets experienced a downturn on Monday, rattled by the specter of impending U.S.tariffs.Concerns surrounding President Trump’s trade policies fueled investor anxiety, leading to market declines and a surge in safe-haven assets like gold.
Q: Wich European stock indexes were most affected by the downturn?
A: The major European indices all closed in negative territory:
The Black shirt (Milan) fell 1.72% to 38,072 points.
Frankfurt’s DAX decreased 1.16% to 22,197 points.
The CAC 40 in paris dropped 1.58% to 7,790 points.
London’s FTSE 100 declined 0.83% to 8,587 points.
Q: Did individual stocks reflect the negative sentiment?
A: Yes, individual stocks also reflected the negative sentiment.
In Germany, BMW shares fell 3.22%, Mercedes Benz dropped 2.84%, and Airbus decreased by 1.78%.
In London, IAG, the parent company of British Airways and iberia, plummeted 6.62%.
Paris saw declines in Louis Vuitton (2.49%) and Pernod Ricard (2.8%).
Q: How did Milan’s FTSE MIB perform specifically?
A: Milan’s Piazza Affari concluded the week’s first session with the FTSE MIB index losing 1.77%, settling at 38,051 points.This decline followed President Trump’s statement that the forthcoming U.S. tariffs would impact “all countries.” The financial sector was particularly hard hit.
Q: Which financial stocks in Milan were the most affected?
A: Several financial stocks in Milan saw notable drops:
Unicredit down 3.14%
intesa falling 1.83%
MPS decreasing 4.57%
mediobanca dropping 3.20%
Ban BPM down 2.54%
BPER declining 3.38%
Q: Were there any gainers in the Milan market?
A: Yes. Shares of Tim rose 0.58% to 0.3108 euros per share,following Poste’s increased stake in the telecommunications group to 25%.
Q: How did other individual stocks perform in Italy?
A: Other stocks also experienced fluctuations:
Poste fell 1.35%.
Industrial stocks saw losses: Iveco declined 4.86%, Stellantis down 2.10%, and Pirelli decreased 0.55%.
Energy stocks had mixed results: eni was almost unchanged, Enel fell 0.50%, while Snam bucked the trend with a gain of 0.52%.
Terna performed well, closing at a historic high of 8.364 euros per share, up 0.58%.
Q: What was the status of the BTP/Bund spread?
A: The spread between Italian BTPs and German Bunds remained relatively stable, closing at 113 points, consistent with the opening value of 113.5 points. The yield on 10-year BTPs stood at 3.863%.
Q: What’s the impact of the uncertainty surrounding US tariffs?
A: Uncertainty surrounding the tariffs drove investors towards safe-haven assets, which boosted the price of gold and put downward pressure on the dollar. Markets are on edge ahead of the expected proclamation of new tariffs on Wednesday. Details remain scarce, but President Trump indicated the measures would affect all countries.
Q: How did gold prices react to the market uncertainty?
A: Gold reached a new high of $3,128.06 per ounce, marking its third consecutive session of record highs.
Q: How is the euro performing?
A: The euro weakened against the dollar. However, it’s worth noting that the euro recorded a quarterly increase of approximately 4.5%, its largest gain as the third quarter of 2022, fueled by Germany’s tax revisions.
Q: What did Christine Lagarde, president of the European Central Bank (ECB), have to say about the tariffs?
A: Christine Lagarde stated that the potential implementation of U.S. tariffs necessitates greater European control over its economic future.
Q: What is the most recent news about the US tariffs?
A: While President Trump suggested last week he was open to tightening agreements with countries seeking to avoid tariffs, The washington Post reported over the weekend that he intends to adopt a more aggressive stance.Merrill Lynch analysts wrote in a note that “The generalized rates would be a negative surprise”.
Q: How did the Euro and the Dollar perform against other currencies?
A:
The euro fell 0.3% against the dollar to 1.0791
The euro rose 0.46% against the yen to 161.51
The dollar declined 0.10% against the Japanese currency to 149.62 yen.