FTSE MIB Falls as Oil Surge Stokes Stagflation Fears

The FTSE MIB Index decreased -390 points or 0.89 percent on Thursday to close at 43624 points. The decline was led by Prysmian (-3.09%), Infrastrutture Wire (-2.69%) and UniCredit (-2.31%). On the upside, the strongest performers were Saipem (5.99%), Recordati (5.66%) and Tenaris (2.59%).

The FTSE MIB fell 0.7% to 43,702 on Thursday as markets navigated uncertainty over Middle East peace talks. The US pushed back against talks after Iran had countered their first proposals for a ceasefire, raising oil prices and stoking inflation worries. Energy-driven stagflation fears lifted bond yields and the BTP-Bund spread widened sharply, pressuring financials. UniCredit lost 2%, Intesa Sanpaolo fell 1.8%, and Finecobank posted a 1.6% loss. Oil-related stocks gained on higher commodity prices: Eni rose 2% and Saipem surged 5.8%. Recordati Ord rose 4.7% on takeover bid rumors from CVC.

The FTSE MIB fell nearly 1% to around 43,500 on Thursday, halting a three-day gain and moving in line with its European peers, as markets navigated uncertainty over Middle East peace talks. The US said discussions around a proposed peace plan were in progress, but Iran countered that it was not engaged in direct talks with Washington. Oil prices resumed their advance, continuing to stoke inflation worries and putting additional pressure on equity markets. Across the bourse, most stocks were subdued, including UniCredit (-1.2%), Intesa Sanpaolo (-0.9%), Leonardo (-1.6%), Poste Italiane (-1.4%), and Prysmian (-4.8%). On the economic front, Italy’s consumer confidence fell to 92.6 in March, the lowest reading since October 2023, while business confidence slightly improved to 88.8 from 88.5 in February.