Italian Stocks Rebound on Tuesday

The FTSE MIB index closed 2.7% higher at 45,202 on Tuesday, rebounding from the three-month low yesterday as a sharp retreat in key energy prices soothed concerns of a fresh bout of inflation that may force the ECB to hike rates. Natural gas benchmarks dropped, easing costs for the feedstock of nearly half of Italy's power production and supporting BTP demand for a sharp reduction in their yields. Banks trimmed their plunges this month with UniCredit adding close to 6%, while BPM, BPER, and Mediobanca jumped 5%. In turn, STMicroelectronics tracked the strong session for chip stocks across the globe after TSMC reported strong sales, lifting their shares by 3.9%.

The FTSE MIB Index went up by 1190 points or 2.70 percent on Tuesday to close at 45215 points. The rise was led by UniCredit (5.75%), STMicroelectronics (5.62%) and Mediobanca (5.44%).

The FTSE MIB rose more than 2% to around 45,000 in early trading on Tuesday, rebounding from a nearly three-month low, after President Trump signaled that the war against Iran could end soon. Trump said on Monday that the conflict “is very complete” and indicated that the US is “very far ahead” of his initial four- to five-week timeline for military operations. Still, investors are keeping an eye on energy markets following the recent surge in crude prices, which has reignited worries over inflation, interest rates, and broader economic growth. Financial stocks led the recovery, with strong gains from UniCredit (+4.6%), Intesa Sanpaolo (+3.1%), Banca Mediolanum (+4%), Banco BPM (+3.6%), Bper Banca (+4.7%), Mediobanca (+4.9%), and Banca Monte dei Paschi di Siena (+4.8%).