FTSE MIB Tries to Bounce

The FTSE MIB reversed steep early losses to trade more than 1% higher around 43,395 on Monday, in line with major European peers. Investors reacted to President Trump’s announcement of a five-day pause on planned strikes against Iran following what he called “very good and productive” discussions with Iranian officials. However, Iranian official dismissed the claim. Nearly all sectors advanced, except oil & gas and healthcare. Telecom Italia led the gains, rising 5.9%, followed by Unicredit (4.1%), Ferrari (3.5%) and Banco BPM (+3.5%). On the opposite side, Poste Italiane plunged 6.8% after announcing the launch of a public tender offer for all of TIM's shares, valued at €10.8 billion, aimed at delisting the company.

The FTSE MIB fell nearly 2% to around 42,800 on Monday, hitting its lowest level since late November last year, as escalating turmoil in the Middle East kept global markets on edge. President Donald Trump signaled potential US strikes on Iran’s power infrastructure if the Strait of Hormuz remains closed. In response, Tehran warned it could fully shut the key shipping route and target energy and water facilities in neighboring countries, heightening risks of broader regional disruption and energy supply shocks. Nearly all stocks traded in the red, led by Poste Italiane (-6.9%) after it announced a cash-and-share offer to acquire former telecom monopoly Telecom Italia, whose shares, in contrast, rose more than 4%. Other laggards included Prysmian (-3.3%), STMicroelectronics (-3.8%), and Leonardo (-3.3%), while heavyweight financials also declined.

The FTSE MIB Index fell -773 points or 1.77 percent on Friday to close at 42928 points. Leading the losses are Infrastrutture Wire (-8.55%), STMicroelectronics (-3.51%) and UniCredit (-3.48%).