Passionate week for stock exchanges with Trump's duties. Milan (-11.2%) resets 2025 gains to zero. On Wall Street DJ -5.5%, Nasdaq -5.8%, S&P -5.97%.

(Il Sole 24 Ore Radiocor) - US tariffs sank the European stock markets, which closed the week in the red and almost completely wiped out the gains made since the beginning of the year. Milan, the worst in the eighth, lost 11.2%, eroding the progress made since January to just over a percentage point. Paris (-9.5%), Frankfurt (-9.8%) and Amsterdam (-8%) were also down, while Madrid (-7%) and London (-6.8%) limited the damage to some extent. This while Wall Street is also set to end the eighth week with heavy declines. The sales started on Monday with the first rumours about the tariffs wanted by Donald Trump. The mid-week recoveries, which were nullified by the sell-offs after the so-called 'Liberation Day', were to no avail.

Among the most penalised sectors on the stock market was the banking sector (-14.8% the European sub-index for the eighth week), which in Milan saw Bper (-20.1%) and Intesa (-14.4%) plummet. Fair sales were also seen in the auto and industrial vehicles sector, on which tariffs of 25% will be triggered: at Piazza Affari, Iveco blew 20.5% and Stellantis 20.9%. Stellantis (-23%) blamed Nasdaq weakness and possible European responses to the trade war, which threaten to involve the tech sector. The black jersey of the main Milanese list, however, goes to Prysmian (-25.2%), which is in line with the debacle of industrial stocks (-13.8% at a European level) and is also affected by fears of a slowdown in investments in data centres and AI. Among the few positive notes from the Ftse Mib are utilities, which, in addition to their defensive nature, benefit frompossible further rate cuts by the ECB to curb euro appreciation and growth fears. So Italgas (+4.1%), Snam, Terna (both +3.6%) and Enel (+1.6%) are doing well. Poste's climb to close to the 25% threshold in its capital and speculation about possible consolidations in the Tlc market finally pushed Tim up +3% during the week.

China's response to the tariffs imposed by Donald Trump - with 34% tariffs on all US goods - has raised the temperature of the trade clash. No step back from the US president, not even after the second day of sharp declines recorded on Wall Street. Thus, the stock exchanges of the Old Continent all posted losses of around 4 to 5 percentage points on Friday. The black jersey was Milan which, with a loss of 6.5%, sent €47 billion up in smoke. At the European level, the Euro Stoxx 600 instead burned EUR 1.2 trillion, and sales spared no sector in the last session of the week. "China's response to the US tariffs is aggressive and makes a short-term agreement" with the US highly unlikely, Capital Economics explains, summarising the day's mood in the markets, with the Dragon seeming to believe that its economy is "strong enough to withstand any Trump attack".

Against this background, Federal Reserve Chairman Jerome Powell predicts that the tariffs decided by President Trump will increase inflation and slow economic growth. Therefore, he warns, the US central bank will not change interest rates until it has a clearer picture of their impact. Powell however sees an economy that is 'currently strong' and growth 'solid'. In contrast, the White House tenant presses on Truth Social: "This would be the perfect time to cut rates for Fed Chairman Jerome Powell. He is always 'late' but could now change his image quickly'. The tycoon then addressed the central bank's number one directly: 'Jerome, cut interest rates and stop playing politics'.

March employment report exceeded estimates in the US, where 228,000 jobs were created against expectations for 140,000. The unemployment rate rose from 4.1% to 4.2%, against expectations for a confirmation of 4.1%. President Donald Trump called thelabour market numbers "great" on Truth Social. "It's already working. We can't lose," he wrote.