The FTSE MIB fell over 1% to close at 40,077 on Friday amid fresh pessimism on the outlook of global trade. Reports indicated that the EU is due to receive a tariff letter from US President Trump, confirming levies on the bloc shortly after he raised tariffs on Canada to 35%, escalating trade wars with key commerce partners. On monetary policy, Bank of Italy Governor and ECB Board member Fabio Panetta said the key issue is whether current interest rates are adequate to keep inflation near target, avoiding persistent deviations. He added that if downside risks to growth strengthen disinflationary trends, further monetary easing would be appropriate. In contrast, ECB Executive Board member Isabel Schnabel said interest rates are well positioned and the bar for additional cuts is high. On the corporate front, Iveco Group (-6.1%), Stellantis (-4.6%), Amplifon (-3.8%), and Banco BPM (-3.7%) led the losses.