The FTSE MIB closed flat at 40,432 on Monday, erasing early gains but outperforming other European equities following the US–EU trade deal. The EU agreed to 15% tariffs on their exports to the US and pledges of added investment in the US, to alleviate the US threat of 30% levies. The tariff applies to key EU exports like autos, pharmaceuticals, and semiconductors, but exempt aircraft parts, select chemicals, and agricultural goods. STMicroelectronics closed 2.7% higher to track the strong session for the chip sector, supported by relief that semiconductors would not be subject to more aggressive tariffs by Washington. Banks also closed higher with BPER Banca and Banco BPM adding close to 2%. In turn, Leonardo fell 2.9% as US defense contracts might be favored following the EU's investment pledge, while autos were further punished by trade barriers with Iveco and Stellantis dropping 4% and 2.7%, respectively.