Milan Bourse Closes 4.73% Up After Trump Tariff Pause
Milan: The Milan bourse closed 4.73% up following the Trump tariff pause, with the FTSE-Mib index rising to 34,227 points. European stocks also experienced a rebound after the U.S. president’s reversal, amid significant fluctuations in the U.S. bond market. London closed 3.04% up, Paris rose by 3.83%, Frankfurt increased by 4.53%, and Madrid saw a rise of 4.02%.
According to Ansa News Agency, stocks in New York that had surged due to Trump’s policy change on Wednesday declined on Thursday. The Dow Jones fell by 5.37%, the Nasdaq decreased by 7.14%, and the S and P 500 was down by 6.10% as tensions in the U.S.-China trade war heightened. The dollar dropped by 2.1%, hitting its lowest level since last October, with analysts expressing concerns that Trump’s actions could jeopardize its dominance in the global financial system. Meanwhile, the euro reached a post-July 2023 high against the dollar, trading at $1.1228. The tariffs imposed by Trump on Chinese goods, which are not included in the 90-day pause, now total 145%, while Beijing’s counter-tariffs are at 84%.
In Milan, trading activity was brisk, with a total value of 5.68 billion euros. However, this figure is modest compared to over 9.1 billion euros traded on April 4th and 9 billion euros in the following session. All major stocks posted gains, with the spread between 10-year German BTPs and Bunds increasing to 124.4 points. The Italian annual yield decreased by 6 points to nearly 3.82%, and the German yield fell by 1.3 points to 2.57%. Unicredit led the banking sector with an 8.36% rise, followed closely by Tim at 8.31%, as analysts at Exane BNP Paribas predict it will outperform. Other notable performers included Banco BPM (+7.58%), Fineco (+7.48%), and Nexi (+7.4%), driven by speculation of a dividend increase. Popolare Sondrio (+5.84%), Intesa (+5.77%), Bper (+5.75%), and Mps (+4.77%) also showed strength.
In the industrial sector, Prysmian stood out with a 7.5% gain, bolstered by Banca Akros analysts’ recommendation to buy, with a target price increase of 44% to 65 euros. Interpump (+7.18%) and Saipem (+4.9%) also performed well. Among other significant stocks, Ferrari gained 4.23%, Leonardo 3.9%, Amplifon 3.86%, and Mediobanca 3.84%. Iveco, Eni, Snam, Enel, and Stellantis experienced smaller increases compared to the index. Even the least successful stocks, such as Italgas and Diasorin, saw gains of 1.32% and 0.9%, respectively, on what was described as a day of redemption.