FTSE MIB Halts 5-Day Gain

The FTSE MIB edged lower to around 52,900 on Thursday, halting a five-day record-breaking rally as markets weighed the US–Iran interim peace agreement against hawkish signals from the Federal Reserve. The US and Iran signed a tentative deal extending the ceasefire by 60 days to allow negotiations on a final agreement, with the full reopening of the Strait of Hormuz easing shipping restrictions and triggering a pullback in oil prices. Meanwhile, the Federal Reserve held rates steady, though Chair Kevin Warsh signalled that hikes remain possible to curb inflation. In Europe, the Bank of England is expected to keep policy unchanged, with attention on any hawkish dissent among policymakers. Energy-related stocks continued to decline, including Eni (-0.8%), Enel (-0.5%), and Tenaris (-1.2%). Other notable laggards included Moncler (-1.3%), Saipem (-3%), Buzzi Unicem (-1.8%), and Davide Campari-Milano (-1%).

The FTSE MIB Index rose 163 points or 0.31 percent on Wednesday to close at 52595 points. Leading the gains are Banco BPM SPA (2.92%), Saipem (2.87%) and Banca Mediolanum (2.31%). Top losers were Infrastrutture Wire (-3.12%), Stellantis N.V. (-3.08%) and Diasorin (-2.83%).

The FTSE MIB rose 0.3% to close at 52,595 on Wednesday as markets awaited confirmation of the US-Iran peace agreement and the US Federal Reserve’s monetary policy outlook. Iran and the US remained on track to sign the deal on Friday, despite lingering uncertainty over the terms. Oil prices hovered near a three-month low amid prospects of the reopening of the Strait of Hormuz and the International Energy Agency warning of a supply overhang next year. Bond yields edged lower as energy-driven inflation concerns eased. Financial stocks led gains, with UniCredit up 2.2%, BPER Banca rising 1%, Banco BPM gaining 2.4%, and Intesa Sanpaolo adding 0.7%. UniCredit’s buyout offer for Commerzbank officially ended on June 16, lifting its overall stake to 42.4% after a 12.41% take-up. The German government reiterated its opposition and formally rejected the offer. Investors now have two additional weeks to tender shares, with final results due on July 8. Approval from the ECB is still required.