European stock markets opened cautiously on Monday, with US futures trading lower following former US President Donald Trump’s announcement of potential 30% tariffs on the EU starting in August. Milan’s FTSE MIB index hovered near flat (-0.02%), while London’s FTSE 100 gained (+0.41%). Losses were seen in Frankfurt’s DAX (-0.76%), Paris’s CAC 40 (-0.34%), and Madrid’s IBEX 35 (-0.14%). With no major macroeconomic data releases, investor focus remained fixed on the tariff developments, with negotiations ongoing and expectations that any settlement would likely still exceed 10%.
The dollar stabilized above €0.85 and £0.74. US Treasury yields rose (+2 basis points to 4.42%), pushing the spread over German Bunds to 170 basis points. The Italian BTP-Bund spread held below 86 basis points, as the BTP yield increased by 1.9 basis points to 3.59% and the Bund yield rose by 0.7 basis points to 2.73%. Gold declined (-0.35% to $3,360.4 per ounce), contrasting with gains in crude oil (WTI +1.61% to $69.55 per barrel) and natural gas (+1.26% to €36.01 per MWh). Bitcoin continued its rally (+2.82% to $12,732).
Sector sell-offs hit semiconductors, with STMicroelectronics (-1.45%) and BE Semiconductor Industries (-2.8%) declining. Auto stocks also fell, including BMW (-1.8%) and Porsche (-1.65%), alongside luxury goods, pressured by Pandora (-2.13%), Christian Dior (-1.74%), and Puma (-1.67%). Energy majors TotalEnergies (+0.8%) and Eni (+0.21%) held firm. Banks gained, led by Popolare di Sondrio (+4.77%) following the reopening of BPER Banca’s takeover bid (+4.67%) from July 21-25, and Banco BPM (+3.54%) amid expectations regarding UniCredit’s potential offer (unchanged) after a regional court ruling and an EU letter on ‘golden power’. Conversely, Monte dei Paschi (-0.2%) and notably Mediobanca (-0.63%) declined on the first day of the exchange offer for its Siena headquarters, as CEO Alberto Nagel outlined the board’s position.
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