Milan Stock Exchange Takes a Hit as U.S. Tariffs Shake Global Markets
The Milan stock exchange's FTSE Mib index experienced further declines on Friday, losing 17 points as the international financial markets felt the repercussions of new tariffs imposed by U.S. President Donald Trump. This follows a steep drop in value on Thursday when the index lost 36 points after Trump announced a 20% increase in duties on imports from the European Union.
Banking and finance stocks faced particularly harsh realities, continuing their downward spiral on Friday. BPER saw a decrease of 4.8%, while MPS and Unicredit dropped by 4.2% and 4.1%, respectively. Other significant losses were registered by Popolare Sondrio, Banco BPM, and Intesa Sanpaolo, with declines of 4%, 3.5%, and 3%, respectively. Additionally, the insurance sector was not spared, as Generali and Unipol lost 2.7% and 2.5% of their value, respectively.
Compounding these losses, the spread between Italy's 10-year BTP bond and the German Bund widened to 115 basis points, up from 112 the previous day, despite a decrease in BTP yields, which fell to 3.71% from 3.77%. This trend highlights ongoing investor concerns regarding Italy's economic stability amidst increasing global trade tensions.
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