Stock markets are gaining confidence, as fears over tariffs take a back seat. Banks are performing well in Milan

(Il Sole 24 Ore Radiocor) – As we approach midday, the European stock markets are gaining confidence and consolidating their gains, with the FTSE MIB in Milan up by almost one point, as is the CAC 40 in Paris and the DAX 40 in Frankfurt. However, concerns over new tariffs from the US administration continue to linger in the background on the markets. Washington has in fact announced the imposition of tariffs ranging from 10% to 12.5% on its main trading partners, as part of a new series of trade barriers which, according to the Trump administration, are aimed at combating forced labour.

The new tariffs, announced on Thursday by the office of US Trade Representative Jamieson Greer, are set to replace President Trump’s temporary 10 per cent across-the-board tariff, which expires on Friday morning. Trump had introduced that temporary tariff in February, after the Supreme Court had struck down most of his across-the-board tariffs.

Meanwhile, investors remain alarmed by the new front in the war between the US and Iran opened by the Iranian-backed Yemeni Houthis, who are threatening maritime traffic in the Red Sea, fuelling fresh fears of supply disruptions in the Middle East. By declaring a blockade on Saudi oil shipments through the Red Sea and opening fire on two ships, the Houthis have begun to isolate a second key commercial chokepoint, Bab al-Mandeb, the strait linking the Red Sea to the Gulf of Aden and the Indian Ocean. The militant group’s actions risk, amongst other things, drawing in other regional military powers such as Saudi Arabia, Israel and Pakistan.

On the Milan Stock Exchange, Amplifon is making a name for itself, whilst the banks are performing well, led by Intesa Sanpaolo and Banco Bpm , whilst Poste Italiane is performing poorly following its quarterly results. The group reported an increase in profits and revenue in the first half of 2026, confirming its guidance for the full year. Selling pressure continues on Stmicroelectronics , following the previous day’s sharp fall in the wake of its results. As CEO Jean-Marc Chery told La Repubblica, around €2.4 billion will be invested in Catania between 2026 and 2028 to boost 8-inch silicon carbide capacity, and €1.4 billion in Agrate Brianza. It is worth noting that Jefferies has confirmed its ‘hold’ rating on Buzzi , whilst lowering its target price from 49.5 to 46.5 euros, and that Mediobanca has confirmed its ‘outperform’ rating on Unicredit , raising the target price from 92 to 100 dollars

Against this backdrop, oil prices are edging back slightly following yesterday’s surge, which pushed Brent futures above $100 a barrel for the first time in two months. At present, the September Brent contract is trading at $100.15 (-0.5 per cent) and the September WTI contract at $91.45 (-0.8 per cent). European natural gas remains stable at €62 per megawatt-hour.