Chaos on the markets: European stock markets down, Wall Street positive, gold up and dollar falling
The stock markets file a schock eighth week hanging on Trump's announcements and China's countermove. Euro tops since 2022 against the greenback, gold still a record. Wall Street closes higher, DJ +1.56%, Nasdaq +2.06%. For S&P 500 best week since 2023
by Laura Bonadies and Stefania Blasioli
5' min read
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(Il Sole 24 Ore Radiocor) - In a heart-stopping week for the European stock exchanges due to the trade war triggered by Donald Trump's US administration, especially with regard to China, with a series of announcements and stop-and-go, the Old Continent's stock markets ended the eighth week all in negative territory. Paris was the worst performer, leaving 2.3% on the ground, followed by Milan (-1.8%) and Frankfurt (-1.3%). Most European sectors were down, with the oil and gas sector down 7.2%, followed by autos (-4.1%) and utilities (-2.9%), which were impacted by the sharp drop in oil prices, which fell 2.3% in the eighth quarter. Italy's utilities sector also suffered the most, dropping 5.1%. Banks, on the other hand, fared well (+2.7%) always in the spotlight as far as the sector's resurgence is concerned. The euro/dollar exchange rate was up 3.3%, with the greenback moving to a three-year low against the single currency.
Turning to individual Italian equities, Nexi was the best performer (+5.9%) with Cdp (shareholder with 18%) not ruling out "any option" regarding its presence in Nexi. On the second step of the podium Unicredit (+5.6%) grappling with the offer launched for Banco Bpm and approved by 99.88% of the shareholders in Piazza Gae Aulenti. Lastly, Leonardo closed the eighth quarter up 5.4%, galvanised by the meeting on the satellite dossier with EU antitrust chief Teresa Ribera, together with Airbus and Thales. The three groups have long been in talks to consider a combination of their respective satellite activities. On the opposite side for Stellantis (-12.6%), which paid the price for the US trade war and also for global delivery estimates for the first quarter that were below expectations. Eni was down 11.9% and Tenaris 10.9% under pressure from the tariff effect on steel.
Friday's session uneasy between US-China escalation and dollar fall
In Friday's session, Beijing's response to Washington's tariff increase generated unease on the European stock markets, which also ended the last session of the week down. Milan fell 0.73%, Paris 0.3% and Frankfurt 0.94%. Investors were unnerved by China's decision to raise tariffs on US goods from 84% to 125%, in response to US President Donald Trump's decision to raise tariffs on imports from the People's Republic to 145%. For its part, Beijing has made it known that it does not want to continue with further increases, "not even if the US were to continue imposing higher tariffs: it would no longer make economic sense and would become a joke in the history of the world economy". Meanwhile, investors' eyes are on the late evening when S&P will comment on the sovereign ratings of Italy and Great Britain, Moody's will rate Belgium and France, and Fitch on Spain.
Gold record
.Another record close for gold, which today gained $67, or 2.12%, to $3,222.20 an ounce. On the week, it gained 6.98 per cent. This was the fourth consecutive week on the rise, the thirteenth in the last fifteen.
Wall Street closes higher, DJ +1.56%, Nasdaq +2.06%. For S&P 500 best week since 2023
Wall Street closed positive. The Dow Jones rose 1.56 per cent to 40,212.47 points, the Nasdaq advanced 2.06 per cent to 16,724.46 points, and the S&P 500 advanced 1.81 per cent to 5,363.26 points.
