FTSE MIB Starts Week Muted

The FTSE MIB was flat to around 49,800 on Monday, following losses from the previous session, as markets opened the week reacting to renewed geopolitical tensions in the Middle East. Fresh Iran–Israel exchanges of fire further undermined an already fragile ceasefire, raising doubts over progress in efforts to de-escalate the conflict, which now appear to be deadlocked. The developments pushed oil prices higher by over 4%. In corporate news, private bank Intesa Sanpaolo declined more than 4% after unveiling a competing €30.6 billion takeover bid for Monte dei Paschi di Siena, just a day after rival Banco BPM proposed a merger offer. Banco BPM slipped nearly 1%, while Monte dei Paschi surged more than 10%. The moves have triggered a bidding contest for control of MPS, the world’s oldest bank, with the outcome expected to reshape Italy’s banking sector.

The FTSE MIB Index dropped 281 points or 0.56 percent on Friday to close at 49893 points. Losses were led by STMicroelectronics (-5.38%), Prysmian (-3.52%) and Stellantis N.V. (-2.85%). Offsetting the fall, top gainers were Infrastrutture Wire (3.27%), Italgas (3.09%) and Hera (2.08%).

The FTSE MIB lost 0.6% to close at 49,893 on Friday as higher bond yields and escalating hostilities in the Middle East weighed on sentiment. Iran-backed Hezbollah rejected a new Lebanon ceasefire proposal, while Israel said it would not withdraw its troops, undermining US diplomatic efforts with Iran. Oil prices remained elevated, fueling inflation concerns, while stronger-than-expected US payrolls data pushed Treasury yields higher and reinforced expectations that the Federal Reserve may keep interest rates elevated for longer. Heavyweight financials weighed on the index, with UniCredit down 1.4%. STMicroelectronics slumped 5.9% as investor enthusiasm for artificial intelligence cooled following weaker-than-expected results from Broadcom. Elsewhere, Stellantis extended losses by 3.2% after announcing earlier this week over €1 billion of investments in electric and hybrid vehicle production in France. On the data front, Italy's GDP will grow 0.7% this year, according to estimates.