The FTSE MIB Index Closes 1.22% Lower

Italy’s FTSE MIB fell 1.2% to close at 45,794 on Thursday, trimming the 2.1% increase from the earlier two sessions as escalating geopolitical tension weighed on the outlook of growth and energy inflation. The US reinforced its military presence in the Middle East amid rising tensions with Iran despite recent talks. Enel fell 3.6% after the Italian government approved a two-percentage-point hike in its IRAP corporate tax on energy firms. Banks also declined on rising credit costs, with UniCredit down 2.4% and Intesa Sanpaolo losing 1.5%. Meanwhile, Fincantieri fell 11.8% after it announced a new share placement with institutional investors representing up to 10% of its share capital. On the upside, Tenaris surged 9.5% after reporting a 5% rise in fourth-quarter net sales, beating expectations. Eni gained 1.4% as oil prices climbed, while Leonardo added 1.9% amid renewed tensions.

The FTSE MIB Index fell -567 points or 1.22 percent on Thursday to close at 45794 points. Leading the losses are ERG (-4.38%), Stellantis N.V. (-4.21%) and Enel (-3.83%).

Italy’s FTSE MIB fell more than 1% to around 45,780 in early trading on Thursday, snapping a two-day winning streak, as escalating geopolitical tensions weighed on sentiment. The US strengthened its military presence in the Middle East as tensions mount with Iran despite recent talks, while peace negotiations between Ukraine and Russia ended without a breakthrough. Major laggards included Enel (-3.8%), Prysmian (-4.1%), Stellantis (-3.2%), A2A (-3.5%), Interpump group (-2.3%), and ERG (-5.7%). Meanwhile, shares of Tenaris rose 3.5% after reporting a 5% increase in fourth-quarter net sales, exceeding analyst expectations.