FTSE MIB Retreats as Inflation Concerns Pressure Markets
2026-05-15 16:13
By
Isabela Couto
1 min. read
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.