Tariffs and Italy’s stance: waiting for annual data
Markets opened with caution as traders weighed the impact of U.S. tariffs on Italian exports and the broader global trade backdrop. Italy’s Minister of Enterprises, Adolfo Urso, said we must wait for annual data to truly identify which sectors are affected and how best to design targeted measures. He also signaled Europe’s proactive stance on trade, urging the European Commission to press ahead with deals with Mercosur and Indonesia and to push for agreements with India, the United Arab Emirates, and other Gulf and Southeast Asian partners.
European markets rise after Wall Street and US payroll data
European equities extended gains after Wall Street opened higher and as U.S. private payroll data indicated mixed signals about the labor market. The Stoxx 600 advanced about 0.7%, with rising sentiment in London (+0.7%), Paris (+0.6%), Frankfurt (+0.6%), Milan (+0.5%), and Madrid (+0.4%). The euro firmed to around 1.176 per dollar as the dollar softened on the backdrop of softer U.S. yields.
Sector highlights
The rally was led by the healthcare sector, which rose around 3.6%, while utilities and energy posted modest gains. Banks and insurers also supported the positive tone. Commodity prices showed mixed signals, with Brent crude hovering near $65.25 per barrel and WTI around $61.61. On government debt, the Italian 10-year yield hovered near 3.50% while Germany’s traded around 2.69%, helping keep spreads in focus as investors digest policy expectations. The U.S. Treasury yield fell slightly, with the 10-year yield easing to about 4.09%.
Wall Street opens lower as shutdown bites and ADP hits jobs
In the U.S., markets faced a negative bias as the federal government entered a shutdown for the first time in nearly seven years. The Dow Jones edged down about 0.2%, the Nasdaq dropped roughly 0.59%, and the S&P 500 fell about 0.45%. The shutdown area widened concerns about delayed data releases and potential knock-on effects on investor sentiment.
Private payrolls dip; mortgage rates rise
The ADP private payrolls report surprised to the downside, showing a loss of 32,000 jobs in September, after a revised decline of 3,000 in August. The figure underscored a cooling labor market and fueled caution about the pace of growth. Mortgage rates also moved higher, with the 30-year fixed rate climbing to about 6.46% from 6.34% the prior week, as higher Treasury yields trimmed refinancing activity.
Safe-haven flows and dollar softness amid the shutdown
The ongoing shutdown supported a shift toward safe-haven assets. The dollar weakened against major peers while gold surged to around 3,860 per ounce, flirting with record territory as investors sought shelter from policy uncertainty. The euro traded near 1.175, aided by softer U.S. yields and the prospect of delayed data releases weighing on the dollar’s bid.
Italy’s market and corporate highlights
In Milan, equities turned slightly positive, led by healthcare names as Pfizer’s agreement with the United States eased tariff pressures in exchange for price concessions under Medicaid. Diasorin and Amplifon were among leaders, while telecoms and energy stocks showed mixed performance. Notably, Nike signaled that U.S. tariffs could add about $1.5 billion to the company’s costs this fiscal year, underscoring the broader impact of trade policy on consumer brands and global supply chains.
Europe edges higher on trade and policy expectations
Across the continent, blue-chip indices extended gains as traders priced in potential trade deal progress and softer euro-area inflation data, which keep open the door to further accommodative policy from the ECB. The Euro Stoxx 50 rose modestly, while investors monitored individual earnings and sector rotations, with healthcare continuing to draw attention amid sector-specific catalysts.
Outlook
Volatility remains a theme as policymakers in Washington navigate the budget impasse and investors await the next wave of U.S. data releases. Tariffs on major brands and the timing of trade policy shifts will continue to influence sentiment, while Europe seeks growth-supportive dynamics through trade deals and monetary policy signals.
