Italian Stocks Close Lower for 3rd Session

The FTSE MIB index closed 0.3% lower at 44,316 on Friday, a third consecutive session in the red as the surge in energy prices and bond yields further dented the outlook for the Italian economy. The pro-inflationary risks from the energy supply shock drove a portion of rate traders to price and ECB rate hike by July. Banks fell further after the surge in BTP yields dented their balance sheets and increased worsened the outlook for credit demand, driving UniCredit to drop 1.5% to their lowest since November. In the meantime, Stellantis dropped over 4% to extend its recent rout. Still, the index's surge on Tuesday was enough to carry a slight increase on the week.

The FTSE MIB Index dropped -159 points or 0.36 percent on Friday to close at 44297 points. Losses were led by Stellantis N.V. (-4.37%), ERG (-4.08%) and Interpump Group (-3.38%). Offsetting the fall, top gainers were MFE-MediaForEurope (2.73%), Saipem (2.65%) and Eni (2.53%).

The FTSE MIB dropped nearly 1% toward 44,000 on Friday, extending its decline for a third straight session, and moving toward an over three-month low touched earlier this week, as the Middle East war showed no signs of easing. Oil prices also continued to rise, sustaining worries over inflationary pressures. The financial sector, the heaviest on the index, extended losses, including UniCredit (-2.3%), Intesa Sanpaolo (-1.9%), Banco BPM SPA (-1.7%), Bper Banca (-1.5%), Mediobanca (-1.5%), and Banca Monte dei Paschi di Siena (-1.4%). Luxury names were also in the red, including Ferrari (-0.7%), Stellantis (-1.8%), Brunello Cucinelli (-2.8%), and Moncler (-1.6%). On the upside, defence and energy stocks Leonardo and Eni rose, both up more than 1%. For the week, the benchmark index is on track for a modest decline.