(Alliance News) - On Tuesday, European stock markets -- in line with the futures market before the bell -- headed sharply lower as global sentiment soured following U.S. President-elect Donald Trump's promise to increase tariffs on China, Mexico and Canada, fueling concerns about escalating global trade tensions.

Markets came under pressure after Trump's election, with fears that his administration could hit European economies and companies with further tariffs.

Thus, the FTSE Mib gives up 0.9 percent to 33,128.29 at the start. Among the smaller listings, the Mid-Cap is giving up 0.8 percent to 46,863.27, the Small-Cap is in the red 0.4 percent to 26,873.89, and Italy Growth is traveling in fractional green at 7,728.05.

In Europe, London's FTSE 100 gives up 0.5 percent, Paris' CAC 40 is in the red 1.0 percent, and Frankfurt's DAX 40 is down 0.8 percent.

On the Mib, best start-up performance for Banca Monte Paschi di Siena, in the green by 2.3%.

Assicurazioni Generali and Saipem are doing well, with gains between 1.5% and 1.3%.

Continued buying on Banco BPM - up 1.0% - after UniCredit stock - down 0.9% - announced a voluntary public exchange offer for EUR10.1 billion yesterday.

Leonardo is doing well, rising 0.9% at the opening. According to Milano Finanza reports Tuesday, the company is expected to be part along with Enel - down 0.6% - and Ansaldo of the public newco that the government intends to launch for a return to nuclear power.

Snam also did well, up 0.4 percent. The company reported that Borsa Italiana accepted on the MOT Professional segment the GBP600 million 12-year and EUR750 million 7-year dual tranche Sustainability-Linked bond issue.

On the stock it is mentioned that Beremberg has increased the target price to EUR4.80 from EUR4.60.

Fear of tariffs announced by President-elect Trump, push down the automotive sector.

At the bottom of the main list, Stellantis gives up 5.4 percent at the start, followed by Pirelli, down 3.9 percent, and Iveco Group, down 2.7 percent.

On the Mid-Cap, among the few bullish Ascopiave, up 0.9 percent.

Webuild--down 0.9 percent--acquired 13 percent of Eurolink, the consortium in charge of building the Strait of Messina Bridge, adding this stake to the 45 percent already held. As Il Fatto Quotidiano writes Tuesday, the stake, which was sold by Ravenna-based Cooperativa Cmc, was acquired for EUR11.3 million, assuming EUR14.6 million in debt.

OVS--down 1.3 percent--reported Monday that it purchased 430,000 of its own ordinary shares between Nov. 18 and 22, for a total consideration of EUR1.2 million. As of today, the company holds 46.6 million of its own shares, or 16 percent of its share capital.

On Small-Cap, Fidia -- stock suspended with a theoretical rise of 23 percent -- has convened a shareholders' meeting for Dec. 27, with some appointments and a proxy to the board of directors for a EUR5.0 million capital increase on the agenda, Milano Finanza explained Tuesday. After years of crisis culminating in 2022 with a resort to composition with creditors and a financing agreement with the Dubai-based Negma fund, Fidia is now working on a relaunch under the leadership of executive chairman Luigi Maniglio, having completed payments to creditors.

Landi Renzo is doing well, up 2.8 percent. The company, as Milano Finanza explained Tuesday, kicked off a EUR25.0 million capital increase under option to shareholders, marking the start of a financial revitalization plan that includes a second EUR20.0 million recapitalization reserved for Invitalia. In Monday's session, the stock had advanced 7.7 percent.

Among SMEs, Askoll Eva does best at the start with a 13 percent rise.

Circle - flat at EUR7.56 per share - on Tuesday announced the participation of its subsidiary Magellan Circle in the AI4COPSEC project, an initiative, coordinated by Simula Research Laboratory, that aims to revolutionize maritime surveillance and environmental crisis response using advanced artificial intelligence technologies and satellite data. As a consortium, Magellan Circle will receive a grant of EUR272,500, which supports its specialized expertise in science communication and outreach activities at the European level.

Innovatec - in the green by 6.2 percent - signaled that it expects to close the 2024 fiscal year with a consolidated production value in the range of EUR232-240 million from EUR215 million in 2023; Ebitda in the range of EUR30-33 million from EUR28.8 million in 2023; and a margin at around 14 percent from 13.4 percent in 2023.

First Capital--flat at EUR15.70 per share--reported Monday that subsidiary First SICAF has increased its stake in CY4Gate to 5.3 percent of the latter's capital. The initial investment in CY4Gate dates back to the company's IPO in 2020, increased in a capital increase in 2022, and most recently through block purchases.

At the bottom of the list, Potobello and Cyberoo give up 7.3 percent and 6.0 percent, respectively.

In New York on European night, the Dow rallied 1.0%, while the Nasdaq advanced 0.3% as did the S&P 500.

Among Asian exchanges, the Nikkei gave up 0.9 percent, the Shanghai Composite closed 0.1 percent in the red, and the Hang Seng closed in fractional green.

Among currencies, the euro changed hands at USD1.0482 from USD1.0487 in Monday's European stock close. The pound is worth USD1.2544 versus USD1.2560 on Monday evening.

Among commodities, Brent crude is worth USD72.84 per barrel from USD73.47 per barrel last night. Gold trades at USD2,639.20 an ounce from USD2,638.58 an ounce Monday night.

On Tuesday's macroeconomic calendar at 1130 CET, a five-year German Bund auction is scheduled.

At 1400 CET, the US housing market report will be due, followed at 1600 CET by the consumer confidence report.

At 2000 CET, coming up are the Federal Reserve minutes while at 2230 CET it will be the turn of weekly oil stocks.

Among the companies in the Piazza Affari, no particular announcements are expected.

By Maurizio Carta, Alliance News reporter

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