On April 2, 2025, the Italian stock market experienced a significant downturn, with the value of exchanges plummeting to 2.91 billion euros, marking a decline of 10.63% from the previous day’s 3.25 billion euros. This drop in trading value reflected a broader trend of reduced market activity, as trading volumes fell from 0.82 billion shares to 0.67 billion shares. Out of the 543 stocks traded on the Milan stock exchange, a substantial 316 closed lower, while only 193 managed to post gains. The remaining 34 stocks remained largely unchanged, indicating a day of turbulence for investors.
The decline continued into the following day, April 3, when the FTSEMib index fell nearly 2% following the announcement of new tariffs from the United States. By 11:50 AM, the FTSEMib had dropped 1.82% to 37,756 points, fluctuating between a low of 37,635 points and a high of 37,942 points. The FTSE Italia All Share index also saw a decrease of 1.71%, while the FTSE Italia Mid Cap and FTSE Italia Star indices fell by 0.81% and 0.92%, respectively.
The financial sector bore the brunt of the market's decline, with several major banks seeing significant losses. BPER Banca's shares fell by 4.21%, reaching 6.956 euros, while UniCredit saw a drop of 4.26%, ending the day at 49.92 euros. The luxury sector also faced challenges, with Brunello Cucinelli’s stock declining by 4.66% to 100.3 euros and Prysmian dropping 3.95% to 48.64 euros. In contrast, the utilities sector showed some resilience, with Enel's shares rising by 1.44% to 7.686 euros. The electricity giant provided analysts with optimistic projections for the entire year of 2025, anticipating a net ordinary profit of approximately 6.91 billion euros.
Bitcoin also made headlines, rising above $83,500 (less than 76,000 euros), a notable increase amid the broader market instability. Additionally, the Btp-Bund spread remained above 110 points, with the yield on the ten-year Btp standing above 3.75%. The euro also strengthened, surpassing the $1.1 mark, indicating some fluctuations in currency values amidst the economic uncertainty.
Market analysts have pointed to the impact of the new U.S. tariffs as a key factor in the recent downturn. The tariffs have raised concerns among investors about the potential for increased costs and reduced profit margins for companies that rely on imports. This sentiment has contributed to the sell-off in various sectors, particularly among banks and luxury goods companies, which are often sensitive to changes in consumer spending.
As the market continues to react to these external pressures, investors are advised to stay informed about economic indicators and corporate earnings reports, which will provide further insight into the potential recovery of the stock market. The volatility seen in recent days serves as a reminder of the interconnectedness of global economies and the influence of policy decisions on market performance.
In summary, the Italian stock market is navigating a challenging period characterized by significant declines in trading volumes and stock prices, particularly in the banking and luxury sectors. While some companies like Enel show resilience, the overall sentiment remains cautious as investors await further developments in both domestic and international economic landscapes.
