FTSE MIB Falls to Over 1-Month Low

The FTSE MIB fell more than 3% to around 44,540 in early trading on Tuesday, extending its decline to a more than one-month low as investors remained cautious over the rising tensions in the Middle East. US President Trump warned that the conflict with Iran could persist for the next four weeks, fueling fears of broader regional instability. The conflict pushed energy prices sharply higher, heightening concerns about inflation and increasing expectations that the European Central Bank may adopt a more hawkish stance. Most sectors traded lower, with banks, utilities, and automakers among the hardest hit.

IT40 decreased to 45104.00 Index Points, the lowest since January 2026. Over the past 4 weeks, Italy Stock Market Index (IT40) lost 3.15%, and in the last 12 months, it increased 19.7%.

The Italian FTSE MIB fell 2% to close at 46,280 on Monday, as rising tensions in the Middle East triggered a broad risk-off move across financial markets. In addition, Italy's budget deficit last year failed to fall inside the European Union's ceiling as targeted by the government, casting a shadow over Rome's hopes of an early exit from an EU disciplinary procedure. Financial stocks underperformed, with UniCredit down 3% and Intesa Sanpaolo losing 3.9% as the combination of poor fiscal data with higher inflation expectations from soaring gas prices drove BTP yields to surge. In contrast, energy-related stocks were lifted as the disruption of oil exports in the Persian Gulf triggered a surge in energy prices, with Eni surging 3.6%. Also, Leonardo climbed 2.5% on the rising geopolitical tensions.