FTSE MIB Slips Amid Inflation Fears

The FTSE MIB Index dropped -543 points or 1.22 percent on Friday to close at 44066 points. Losses were led by STMicroelectronics (-5.06%), Bper Banca (-3.58%) and Banca Monte dei Paschi di Siena (-3.03%).

The FTSE MIB fell 1% to 44,152 on Friday as rising oil prices raised inflation concerns, fueling expectations of a more hawkish ECB stance. The Middle East conflict, with no signs of de-escalation, intensified energy supply fears and pushed oil higher. Higher inflation expectations from soaring energy commodity prices drove BTP yields up, pressuring the financial sector. UniCredit lost 1.2%, Intesa Sanpaolo fell 2.1%, BPER dropped 3.8%, and MPS declined 2.7%. The tech and communications sector also underperformed, with STMicroelectronics down 5.1% and TIM losing 2.7%. Heavyweight laggards included Ferrari (-2.1%) and Stellantis (-1.9%). In contrast, defence stock Leonardo rose 3.4% on ongoing geopolitical tensions, while Eni gained 1.5% on higher oil prices.

The Italian FTSE MIB rose to around 44,900 on Friday, trimming losses from the previous session and moving in line with its European peers as investor sentiment was lifted after the energy market rally took a breather. However, the situation in the Middle East remains uncertain, with the conflict involving Iran showing no signs of easing. Investors remained cautious amid the impact of higher oil prices on inflationary pressures, fueling expectations that the ECB could adopt a more hawkish stance. Defence stock Leonardo was among the top gainers, rising more than 2%, while other notable performers included Prysmian (+2.2%), UniCredit (+1.2%), Enel (+1%), Eni (+1.3%), and Buzzi Unicem (+1.6%). For the week, the benchmark index is set for a decline of almost 5%, breaking a two-week consecutive gain.