The European stock markets closed the last session of the week sharply lowersuddenly worsening in the afternoon after the US president Donald Trump said there “seems to be no reason” to meet Chinese leader Xi Jinping as part of an upcoming trip to South Korea, after China restricted exports of rare earths needed by American industry. Trump has hinted he is considering a “massive increase” in import tariffs on Chinese products in response to Xi’s moves, reigniting fears of a trade war.
On the macroeconomic frontthis morning it emerged that in Italy in August industrial production fell by -2.4% m/m, against -0.4% expected and +0.4% in July. The sharp economic decline was the largest since last December and, canceling the progress of previous months, brought the seasonally adjusted industrial output index back to its lowest level since June 2020.
The main indices
Between the markets of the Old Continent Frankfurt was holding its breath, falling by 1.50%, a negative session for London, which showed a loss of 0.86%, and a crash in Paris, which showed a fall of 1.53%.
Rain of sales also on Milanese price listwhich ends with a heavy decline of 1.74%; along the same lines, the FTSE Italia All-Share was sold a lot, closing the session at 44,687 points. The FTSE Italia Mid Cap clearly worsened (-1.62%); as well as the terrible FTSE Italia Star (-2.2%).
The headlines on Piazza Affari
Between the best performers of Milan, highlighted by Italgas (+1.36%), Snam (+0.86%), Enel (+0.75%) and Terna (+0.71%). The worst performances, however, were recorded on Stellantis, which closed at -7.27%. Letter on Tenaris, which records a significant drop of 5.22%. Leonardo falls, with a decline of 4.65%. Brunello Cucinelli collapses, with a decline of 4.49%.
At the top among Italian shares a mid-capCementir (+2.85%), Cembre (+1.73%), Ferretti (+1.55%) and Sanlorenzo (+1.45%). The worst performances, however, were recorded on Avio, which closed at -13.34%. Sales galore on De’ Longhi, which suffers a decrease of 4.73%. Banco di Desio e della Brianza is under pressure, suffering a decline of 4.42%. Bad performance for Alerion Clean Power, which recorded a decline of 4.13%.
The ECB and Fed minutes
This week the minutes of the latest meeting of the two most important central banks in the world were published. The minutes of the September meeting of the ECB they assumed a decline in the household savings rate, which should support consumer demand. However, if such a reversal does not occur, the ECB may have to consider the possibility of further interest rate cuts.
The minutes of the September meeting of the Fed revealed that some officials may have supported keeping rates unchanged last month due to the uncertain inflation outlook. Some analysts speculate that the data blackout due to the shutdown will likely force the central bank to continue cutting rates as early as the end of the month.
Next week’s themes
In addition to the ongoing political uncertainty in France, next week we will look at Japanwhere Sanae Takaichi, the new leader of the Liberal Democratic Party, could still be elected as the first female prime minister, although the election date is likely to be postponed to at least October 20 from the original date of October 15, as negotiations have become more complicated.
Also focus onItaly: In early October, the Italian government presented its updated budget forecast, confirming a reduction in the budget deficit to close to 3% of GDP this year and a deficit target of 2.8% of GDP in 2026, in line with April projections. Fiscal space for approving growth-supporting measures in 2026-28 will be limited when the Draft Budget is presented next week.
News arrived today on the publication of the report on the consumer price index of United States of September, originally scheduled for Wednesday, October 15th. The Bureau of Labor Statistics said it will release it on Friday, October 24, 2025. No other releases will be rescheduled or released until normal government services resume, although there is no end in sight to the shutdown yet. Releasing inflation data helps the Social Security Administration meet statutory deadlines to ensure accurate and timely payment of benefits.
