FTSE MIB Falls as Middle East Tensions Weigh

The FTSE MIB Index dropped 251 points or 0.52 percent on Friday to close at 47656 points. Losses were led by Avio (-7.15%), Stellantis N.V. (-4.67%) and Fincantieri (-4.63%). Offsetting the fall, top gainers were Prysmian (3.94%), Saipem (2.84%) and STMicroelectronics (0.81%).

The FTSE MIB fell 0.5% to close at 47,656 on Friday as investors monitored a standoff between the US and Iran. Tehran responded to the US blockade by demonstrating its control over the Strait of Hormuz, with few signs the strait will reopen soon. Brent remained near $105, threatening to exacerbate inflation fears and global growth concerns while pressuring financials and the broader index. UniCredit lost 0.7%, MPS shed 1.2% and FinecoBank fell 2.7%. Also, MPS CEO Luigi Lovaglio is considering selling a €7.4 billion stake in Generali (+0.6%) to help finance a takeover of BPM (+0.4%). Eni fell 1.1% after reporting lower first-quarter profit despite higher revenues and production, while Leonardo shed 3% after peer Lockheed Martin’s stock was pressured following the Peruvian government’s announcement that it had postponed jet acquisitions. Other notable laggards included Ferrari (-2.1%), Stellantis (-4.9%) and Enel (-0.6%).

The FTSE MIB fell to around 47,400 on Friday, hitting a nearly two-week low, and is now poised for an over 2% weekly decline, the first in five weeks. The move comes as stalled US–Iran talks and the near closure of the Strait of Hormuz continued to push oil prices higher, weighing on sentiment. Meanwhile, markets continued to assess corporate updates, with Eni reporting lower first-quarter profit despite higher revenues and production, although its shares still rose 0.4%. Separately, Monte dei Paschi di Siena CEO Luigi Lovaglio is considering selling a €7.4bn stake in Assicurazioni Generali to help finance a takeover of Banco BPM, reviving Italy’s plan to create a national banking champion through consolidation. Assicurazioni Generali fell 0.7%, while Banco BPM was flat. Most financials were also in the red, including UniCredit (-1.6%), Intesa Sanpaolo (-1.3%), and BPER Banca (-1.3%), alongside luxury stocks such as Moncler (-2.9%) and Brunello Cucinelli (-2.6%).