Milan Stock Exchange Faces Turmoil Amid Trump's Tariff Announcement
The Milan stock exchange's FTSE Mib index registered a decline of 71 points, reaching 34,418 during Friday's trading session. This drop has resulted in a staggering 61 billion euros being wiped off the market capitalization, as international money markets continue to grapple with the repercussions of U.S. President Donald Trump's recently imposed tariffs.
The bourse had already taken a significant hit, losing 3.6% of its value on Thursday after Trump announced the tariffs, which included a 20% hike on duties imposed on European Union imports.
Banking and finance stocks bore the brunt of these developments, with shares in MPS Banco BPM and Popolare di Sondrio plunging over 11%. Other notable declines were seen in UniCredit and Mediolanum, which fell by 10%, while Mediobanca and Intesa recorded losses of 9%.
In the bond market, the spread between Italy's 10-year BTP bond and the German Bund increased to 121 basis points from 112 on Thursday. Despite this increase in spread, the yield on the BTP decreased slightly, falling from 3.77% to 3.72%. Overall, the financial landscape in Milan remains turbulent as investors respond to the ongoing impacts of global monetary policies.
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