Global markets react to U.S. debt milestones and European volatility

European markets, led by Piazza Affari, are experiencing significant volatility driven by geopolitical tensions in the Middle East and shifting U.S. economic policies. In Italy, investors are closely monitoring MPS following a board meeting led by CEO Luigi Lovaglio, amid speculation regarding potential strategic moves involving Banco Bpm and Banca Generali to counter competition from Intesa Sanpaolo.

In the United States, the national debt has surpassed the $40 trillion milestone. In response to rising long-term yields, the U.S. Treasury has announced an enhanced buyback program for long-term debt to stabilize the market. However, investor skepticism remains high, with yields on 30-year Treasuries reaching levels not seen in decades.

Corporate performance is mixed. Stellantis shares saw a significant rise, benefiting from a potential trade thaw between the U.S. and Canada regarding automotive tariffs. Conversely, technology stocks like STMicroelectronics and Prysmian faced sell-offs, and Amplifon saw declines following disappointing results from its recent acquisition, GN Hearing.