FTSE MIB Rises on Easing Oil Prices

The FTSE MIB Index rose 827 points or 1.71 percent on Wednesday to close at 49182 points. Leading the gains are STMicroelectronics (6.08%), Avio (4.16%) and Intesa Sanpaolo (2.64%).

he FTSE MIB gained 1.7% to close at 49,182 on Wednesday as progress in US-Iran negotiations helped ease lingering inflation concerns and improved broader risk appetite. In the latest diplomatic effort, Pakistan’s interior minister arrived in Tehran, with Pakistan acting as a mediator after hosting peace talks last month. Oil prices retreated, although they remained above $100 per barrel. The decline in crude prices supported financial stocks, with UniCredit rising 2.6% and Intesa Sanpaolo gaining 2.8%. STMicroelectronics climbed 6% ahead of Nvidia’s earnings release later in the day, as investors awaited fresh signals on AI demand and the semiconductor outlook. Leonardo added 2.4% after announcing a contract with Abu Dhabi Ship Building to supply naval combat systems to the Kuwaiti navy. In contrast, Eni fell 1.3% as oil prices moved lower.

The FTSE MIB was little changed around 48,300 on Wednesday, following losses in the previous session, as markets continued to assess developments in the Middle East. With the Iran conflict remaining unresolved, elevated oil prices are likely to sustain inflation concerns, potentially prompting central banks to maintain a tighter policy stance and weighing on sentiment. Notable laggards included Assicurazioni Generali (-0.6%), Ferrari (-0.7%), Poste Italiane (-1.1%), Unipol Gruppo (-0.9%), and FinecoBank (-1.9%). On the flipside, STMicroelectronics climbed nearly 4% as markets awaited Nvidia earnings later today for cues on the AI demand outlook. Other gainers included Tenaris (+2.5%) and Lottomatica (+1.5%). Leonardo edged up 0.2% after announcing it has signed a contract with Abu Dhabi Ship Building, to supply naval combat systems to the Kuwaiti navy.