The FTSE MIB Index Closes 1.87% Lower

The FTSE MIB fell 1.9% to close at 49,116 on Friday, pulling back from a 26-year high reached in the previous session as investors reassessed inflation risks and the outlook for higher-for-longer interest rates. Middle East tensions remained elevated as peace talks stalled. Oil prices rose amid the lack of progress toward ending ship attacks and seizures around the Strait of Hormuz, reinforcing stagflation concerns. ECB Governing Council member Martins Kazaks warned that the ECB may need to tighten policy if higher oil prices lift inflation expectations, highlighting Europe’s vulnerability to energy shocks. Financial stocks led losses, with BPER Banca down 3.7% and Mediolanum falling 3.2%, while Unipol slipped 0.8% despite reporting higher first-quarter net profit. Utilities also traded lower, with Enel shedding 2.4%. Luxury stocks weakened amid higher risk aversion, with Ferrari down 2.6%, while STMicroelectronics lost 4.2% following a deal involving Chinese partner Dongfeng Motor.

The FTSE MIB Index fell 934 points or 1.87 percent on Friday to close at 49116 points. Leading the losses are STMicroelectronics (-4.37%), Buzzi Unicem (-4.25%) and Stellantis N.V. (-3.83%).

The FTSE MIB fell about 1% to around 49,500 on Friday, retreating from a 26-year high in the previous session as investors refocused on inflation risks and the prospect of higher-for-longer interest rates. Middle East tensions also remained elevated after Iran said around 30 vessels were transiting the Strait, although activity stayed well below pre-conflict levels. Meanwhile, President Trump took a more rigid stance toward Tehran, saying he would no longer wait on Iran and urging its leadership to reach a deal with the US. On the earnings front, Unipol Gruppo reported higher Q1 net profit, though its shares slipped 0.9%. Other financial stocks were broadly weaker, including UniCredit (-0.8%), Intesa Sanpaolo (-1.5%), Banco BPM (-1.4%), BPER Banca (-1.7%), and Banca Mediolanum (-1.2%). STMicroelectronics (-4.2%), Prysmian (-1.8%), Ferrari (-1.1%), and Moncler (-1.9%) also declined. Despite Friday’s drop, the index remains on track for a modest weekly gain.