Stocks in Italy Hit 26-year High

The FTSE MIB jumped over 1% to above 49,100 on Wednesday, hitting a fresh record high, as oil prices continued to ease amid renewed hopes for a peace deal in the Iran conflict. The US stated that its offensive military actions against Iran have been completed, while President Trump indicated that Washington would temporarily suspend efforts to assist stranded vessels in leaving the Strait of Hormuz in order to create space for renewed negotiations with Tehran. Heavyweight financials led the advance, with notable gains from UniCredit (+3.4%), Intesa Sanpaolo (+2.4%), Banco BPM (+2.1%), and BPER Banca (+2.6%). Meanwhile, investors continued to welcome a fresh batch of corporate earnings, with Ferrari reporting Q1 revenue that beat forecasts and maintaining its guidance despite lower Q1 deliveries. The stock rose only 0.4%. On the data front, the PMI survey showed that Italy’s private sector returned to growth in April, while the services sector continued to contract.

IT40 increased to 49068.00 Index Points, the highest since March 2000. Over the past 4 weeks, Italy Stock Market Index (IT40) gained 8.01%, and in the last 12 months, it increased 28%.

The FTSE MIB rose 2.3% to close at 48,556 on Tuesday, supported by easing oil prices and strong corporate earnings. Oil prices declined but remained elevated amid ongoing Middle East tensions, as the US and Iran continued their standoff over the Strait of Hormuz. The prospect of softer energy prices eased inflation concerns, lifting financials and the broader index. Intesa Sanpaolo gained 2.4% and MPS rose 3.6%, while UniCredit jumped 5.9% after reporting a record quarter, with net profit of €3.217 billion and higher full-year guidance. Italgas added 1.9% after posting a 44.1% rise in revenue and a 6% increase in net profit. Prysmian surged 10% on plans to pursue €4 billion in M&A deals. On the downside, Ferrari fell 3.9% as deliveries dropped 4.4% year-on-year to 3,436 units amid a model transition. Leonardo (+0.9%) and Amplifon (+4.6%) are also set to report results.