The FTSE MIB Index fell 1% to below 42,800 in early trading on Tuesday, marking its lowest level in a week and tracking broad declines across European markets. Sentiment was weighed down by growing concerns over the US Federal Reserve’s independence after US President Trump announced on Monday that he was removing Federal Reserve Governor Lisa Cook, citing allegations of mortgage borrowing impropriety. Adding to concerns, reports indicated that Trump threatened to impose “200% tariffs or something” on China if it does not export rare-earth magnets to the US, putting the fragile truce between the world’s two largest economies at risk. Losses were broad-based, with financial stocks among the hardest hit, including heavyweights Intesa Sanpaolo (-1.7%) and UniCredit (-1.6%).