European stocks rise despite Trump’s new tariff threats, banks lead gains

European markets shrugged off new U.S. tariff threats from President Donald Trump and opened higher. Milan’s FTSE MIB rose 0.54%, led by banks, with gains also in Paris (+0.55%), Frankfurt (+0.59%), Amsterdam (+0.3%), Madrid (+0.26%) and London (+0.29%).

Trade tensions remain in focus as the EU and Washington finalize a joint statement on their trade deal, with tariffs set to take effect tomorrow. Trump warned of a 35% levy on Europe if promised investments fall short, and hinted at new duties of up to 250% on semiconductors and pharmaceuticals “within the next week or so.”

In Milan, earnings drove movements. BPER gained 1.94% after record H1 net profit of €903.5M and upgraded 2025 guidance. MPS climbed 1.9% on better-than-expected profits, Banco BPM rose 1.22% with record H1 profit of €1.21B (+61.9%), and Popolare di Sondrio advanced 1.24% after reporting €336.2M profit growth. TIM fell 1.23%, despite narrowing its H1 loss to €132M from €646M in 2024 and confirming guidance.

On currencies, the euro held firm at $1.1574 and ¥170.87, with the dollar at ¥147.66. In commodities, oil rebounded on U.S.-India tensions over Russian crude: WTI futures +0.72% at $65.63, Brent +0.81% at $68.19. Natural gas slipped 0.7% to €34.15/MWh in Amsterdam.