(Alliance News) - On Friday, markets were weighed down by statements from Donald Trump, who announced the dispatch of new "letters" to European trade partners, with the potential to raise tariffs to 15% or 20%.

Tariffs dominated the agenda, throwing markets into chaos, with a unified negative response to the latest news of the day.

On the macroeconomic front, inflation in France accelerated to 1.0%, well above forecasts, while in Germany interest in sustainable investments dropped--just as solar energy became, for the first time, the EU's main energy source in June, according to a study by think tank Ember.

The British economy suffered another contraction in May, disappointing growth expectations, according to data released Friday. In Italy, tariffs are already making an impact, with increases reaching 8.8%, according to a study by ISPI.

The FTSE Mib closed Friday down 1.1% at 40,077.88 points, the Mid-Cap fell 0.3% to 55,372.77, the Small-Cap ended down 0.6% at 32,156.09, while the Italy Growth index finished the session up 0.1% at 8,262.83 points.

Across European exchanges, the situation remained unchanged. London's FTSE 100 closed down 0.5%, Paris' CAC 40 dropped 1.0%, and Frankfurt's DAX 40 fell 0.8%.

Axel Rudolph, Senior Technical Analyst at IG, explained: "While equities continue to react negatively to each new announcement of US tariffs, Bitcoin reached a new all-time high near the USD119,000 threshold, confirming its reputation as an asset immune to political interference. With no supply chain disruptions or corporate financial issues weighing on it, Bitcoin is driven by market flow and investor conviction, which remains high."

At Piazza Affari, among blue chips, Leonardo closed on top with a 1.4% gain at EUR47.29. On Thursday, the company signed an agreement with ENAV--up 0.8%--and UKSATSE for the restoration of air traffic management in Ukraine.

Tensions between UniCredit and the German government flared again: Berlin, through Finance Minister Lars Klingbeil, openly opposed the Italian bank, demanding it abandon its bid for Commerzbank and backing the latter's independence.

UniCredit shares lost 2.3% on the floor, while the German bank has dropped over 6% in the last two sessions.

Eni, slightly up at EUR14.288 per share, will develop an AI Data Center Campus in Lombardy with Khazna.

Oddo BHF raised the target price for Brunello Cucinelli to EUR120 with an "outperform" recommendation. Swiss bank UBS also raised its target price for the stock, which nevertheless closed down 1.3%.

Among the 12 risers in the large-cap list, Saipem climbed 1.1%, and utilities gained ground with Italgas--up 0.7%--and Terna--up 0.6%.

Iveco Group closed down 6.1% at EUR15.495 per share, dragged lower by automotive sector sales that also hit Stellantis, which fell 4.7% by session's end.

In the Mid-Cap segment, Fincantieri announced Thursday that its subsidiary Vard, a leading Norwegian builder of special-purpose vessels, signed a contract with US organization Inkfish for the design and construction of a next-generation oceanographic research vessel. The deal is worth over EUR200 million. The shipbuilder's shares gained 2.0%.

d'amico, which had trailed on Thursday, took the lead Friday with a 4.8% gain at EUR3.692 per share, confirming the positive trend of the last 30 days, which saw the stock rise 4.6%.

GVS, fresh from a EUR740,000 buyback operation, closed among the leaders with a 1.3% increase.

NewPrinces also performed well, up 1.2%, after signing a binding agreement with Heinz Italia, a Kraft Heinz subsidiary, to acquire 100% of its Italian baby and specialty food operations.

PharmaNutra closed at the bottom of the list, down 3.3%. The launch of the new Apportal Boost supplement failed to boost buying. Over the past month, the stock has lost 7.4%.

Among small caps, EPH ended trading up 4.3% at EUR0.12 per share. The monthly balance remains positive at 6.2%.

Aeffe closed at the top of the list with a 12% gain at EUR0.515 per share.

Fiera Milano approved the exercise of its option to renew the contract with Fiere di Parma for the organization of the "Tuttofood" event, extending it until 2040. The EUR75.5 million deal pushed the stock up 2.3%.

Dexelance--up 2.1%--signed a binding agreement to acquire a 65% stake in Mollura & C - MOHD, an Italian company active in high-end multichannel furniture and design distribution.

BestBe Holding closed up 4.7%, while Watfood, which holds over 30% of the company's shares, announced it would forgo its takeover bid in exchange for reducing its stake over the next 12 months.

Softlab closed down 6.4% at EUR1.235 per share. The company met with Mimit representatives to discuss the firm's employment situation and the recovery of 123 workers involved in the dispute.

Among SMEs, Emma Villas led throughout the trading day with a 10% increase, and GEL showed the same percentage gain.

After the Turin Prosecutor's Office decided to seek trial for illegal banking and related offenses against a number of individuals and entities, including banker Massimo Segre, Directa SIM closed flat at EUR5.7 per share.

Adventure approved a capital increase reserved for qualified and professional investors, for a total maximum amount, including premium, of EUR2.1 million, at an issue price of EUR15.00 per share. The stock closed down 4.5%.

In New York, the Dow Jones was down 0.6%, the Nasdaq lost 0.2%, and the S&P 500 dropped 0.4%.

On the currency front, the euro traded at USD1.1692 from USD1.1682 at Thursday's close, while the pound exchanged at USD1.3503 from USD1.3556 Thursday evening.

Among commodities, Brent traded at USD70.19 from USD68.97 per barrel at the previous close, while gold was valued at USD3,357.97 from USD3,320.13 per ounce last night.

Looking ahead to Monday's economic calendar, in a day light on macro data, Chinese trade balance figures are expected at 0500 CEST.

At 1200 CEST, the Eurogroup meeting is scheduled, while at 1500 CEST, French BTF auctions with three, six, and 12-month maturities will take place.

The US Treasury bill auctions--with three and six-month maturities--are scheduled for 1730 CEST.

At Piazza Affari, results from Ubaldi Costruzioni are expected.

By Michele Cirulli, Alliance News Reporter

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