Cautious start for european markets, Milan edges lower

European stock markets opened on a cautious note, with Milan posting modest losses while the rest of the region held broadly steady.

Investors are monitoring political tensions in France over the government’s Budget Law, as well as the ongoing clash between the White House and the Federal Reserve. Attention is also turning to Nvidia’s earnings, set to be released after Wall Street’s close.

In Milan, the banking sector failed to rebound after yesterday’s losses. The government is reportedly considering negotiations with lenders over a potential contribution to support public finances ahead of possible tax cuts in 2026.

An exception was UniCredit, which outperformed after Citigroup resumed coverage with a “buy” rating and a target price of €74.