European Stock Markets Decline Amid New U.S. Tariffs
Concerns rise over trade tensions as gold prices surge and banking stocks tumble.
European stock markets opened significantly lower on April 3, 2025, following the announcement of new tariffs imposed by the United States.
The escalation of trade tensions has prompted traders to reassess the risks of a potential global recession, leading to a sell-off in several sectors.
Major indices in Frankfurt, Paris, and London recorded declines of 2.4%, 2.15%, and 1.43% respectively.
In Italy, the Milan Stock Exchange experienced a decrease of 1.9%, paralleling the downward trend seen across other European markets.
The banking sector faced particular challenges, with notable stocks such as Bper Bank dropping by 4.6%, UniCredit by 4%, and Popolare Sondrio by 3.8%.
Further declines were observed in companies like Prysmian, which fell 3.9%, and Tenaris, down 3.8%.
The automotive sector also struggled, with Iveco declining by 2.7% and Stellantis by 1.7%.
However, some stocks resisted the downward trend, with Terna gaining 1%, A2A 0.9%, Campari 0.7%, and Ferrari 0.5%.
In response to the economic climate, government bond yields showed a downward trend.
The spread between the Italian BTP and German Bund remained stable at 112 basis points at the start of the trading day.
The yield on the Italian ten-year bond increased by five basis points to 3.76%, while the German equivalent rose by eight basis points to 2.64%.
British bonds also saw an uptick, with the ten-year yield increasing by nine basis points to 4.55%.
Similarly, the Spanish and Greek ten-year yields rose by six basis points, reaching 3.28% and 3.43% respectively.
The escalation of trade tensions has prompted traders to reassess the risks of a potential global recession, leading to a sell-off in several sectors.
Major indices in Frankfurt, Paris, and London recorded declines of 2.4%, 2.15%, and 1.43% respectively.
In Italy, the Milan Stock Exchange experienced a decrease of 1.9%, paralleling the downward trend seen across other European markets.
The banking sector faced particular challenges, with notable stocks such as Bper Bank dropping by 4.6%, UniCredit by 4%, and Popolare Sondrio by 3.8%.
Further declines were observed in companies like Prysmian, which fell 3.9%, and Tenaris, down 3.8%.
The automotive sector also struggled, with Iveco declining by 2.7% and Stellantis by 1.7%.
However, some stocks resisted the downward trend, with Terna gaining 1%, A2A 0.9%, Campari 0.7%, and Ferrari 0.5%.
In response to the economic climate, government bond yields showed a downward trend.
The spread between the Italian BTP and German Bund remained stable at 112 basis points at the start of the trading day.
The yield on the Italian ten-year bond increased by five basis points to 3.76%, while the German equivalent rose by eight basis points to 2.64%.
British bonds also saw an uptick, with the ten-year yield increasing by nine basis points to 4.55%.
Similarly, the Spanish and Greek ten-year yields rose by six basis points, reaching 3.28% and 3.43% respectively.
Translation:
Translated by AI
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