Italian Market Slumps on Geopolitical Fears
2026-03-03 17:04
By
Isabela Couto
1 min. read
The FTSE MIB fell 3.9% to close at 44,468 on Tuesday, extending its decline to a more than one-month low amid rising tensions in the Middle East.
US President Trump warned that the conflict with Iran could last up to four weeks, fueling fears of broader regional instability.
The conflict drove energy prices sharply higher, raising inflation concerns and increasing expectations that the European Central Bank may adopt a more hawkish stance.
Most sectors traded lower, with financials among the hardest hit.
UniCredi lost 4.6%, and Intensa Sanpaolo fell 5%.
Utilities also posted heavy losses, Italgas was down 6.3% and Enel dropped 5.1%.
The luxury sector underperformed, with Moncler shedding 6.5% and Brunello Cucinelli declining 5.6%.