FTSE MIB Dips as Oil-Driven Stagflation Fears Weighs

The FTSE MIB fell 0.3% to 44,741 on Wednesday as rising oil prices fueled global stagflation fears, widening the BTP-Bund spread and pressuring financial stocks. UniCredit lost 0.4% amid concerns and conflictual merger talks with Commerzbank. Generali and MPS trade close to the flatline. In contrast, Intesa Sanpaolo rose 0.8%, BPM gained 2.1%, and BPER added 1.3% ahead of the ECB’s March policy meeting, with markets expecting no rate change. Also, Eni lost 1.2% as the Middle East war compromises the company's operations in the region. In addition, utilities traded negative, with Enel down 3.3%. Meanwhile, hotter-than-expected US February wholesale inflation had traders reconsidering whether the Fed will cut rates at all this year, putting further pressure on lenders.

The FTSE MIB Index dropped -165 points or 0.37 percent on Wednesday to close at 44722 points. Losses were led by Enel (-3.34%), Hera (-3.19%) and Italgas (-2.11%). Offsetting the fall, top gainers were Interpump Group (4.59%), ERG (2.59%) and Banco BPM SPA (2.40%).

The FTSE MIB rose above 45,000 on Wednesday, extending gains for a third straight session and tracking broader European peers. Markets remained focused on key central bank decisions this week, with the Federal Reserve’s announcement due later today. Risk sentiment improved somewhat, supported by renewed enthusiasm for AI and a decline in oil prices. Supply concerns eased after Iraq agreed to resume shipments through Turkey’s Ceyhan terminal, while Washington stepped up efforts to reopen the Strait of Hormuz. Tech-related stocks advanced, with Prysmian and STMicroelectronics gaining over 2% and 1%, respectively. Heavyweight financials were also mostly higher, including Unicredit (+1%), Intesa Sanpaolo (+1%), Banco BPM (+2.2%), BPER Banca (+1.6%), and Banca Monte dei Paschi di Siena (+1.7%). On the other hand, energy stocks underperformed, with Eni and Enel both falling around 1%.