The FTSE MIB fell 0.7% to close at 39,921 on Tuesday as persistent concerns over the outlook of European trade continued to pressure equities. The EU stated that it is weighing a trade agreement with the United States while preparing a broad list of counter-tariffs covering €72 billion worth of US products, should talks fail. This was after the US announced it would tariff European imports by 30% starting on August 1st despite the prolonged trade negotiations between both nations since early April. In turn, On the corporate front, Recordati fell 3.5% and Buzzi Unichem lost 2.4%. In turn, banks were lower as investors continued to navigate uncertainty on M&A negotiations between the country's top lenders. Meanwhile, Prysmian, Stallantis, and Campari rose between 1% and 2%.