FTSE MIB Extends Losses

The FTSE MIB fell to around 52,100 on Wednesday, extending losses from the previous session as a flare-up in Middle East tensions dampened risk sentiment. Fresh US strikes on Iran and the revocation of a waiver allowing new purchases of Iranian oil pushed oil prices higher, fueling inflation concerns. As a result, markets priced in greater ECB tightening, with implied rate hikes rising to around 32 basis points from 25 basis points a day earlier. Most major stocks traded lower, including financials UniCredit (-1.3%), Intesa Sanpaolo (-1.3%), Banco BPM (-0.9%), Unipol Gruppo (-1.0%), Banca Mediolanum (-1.2%), and BPER Banca (-1.0%). Automakers and luxury stocks also declined, led by Ferrari (-1.7%), Stellantis (-2.1%), Moncler (-0.7%), and Brunello Cucinelli (-1.1%). On the other hand, energy-related stocks outperformed, with Eni (+2.8%) and Tenaris (+1.8%) advancing alongside higher oil prices.

The FTSE MIB fell 1% to close at 52,455 on Tuesday, pressured by AI-related stocks amid renewed overspending concerns. STMicroelectronics tumbled 8.1% as semiconductor shares came under pressure following a broad sell-off in the tech sector, despite Samsung reporting a 19-fold increase in second-quarter operating profit. Prysmian also posted steep losses, falling 6.6%, while automaker Stellantis slipped 0.8%. Renewed geopolitical tensions weighed on financial stocks, led by Banca Mediolanum (-1.2%) and Mediobanca (-0.8%), and asset manager Azimut falling 1.9%. Insurers also traded lower, with Unipol dropping 3% and Generali easing 1.1%. Meanwhile, Leonardo reversed the previous session's gains to fall 1.8%, despite expectations that defence spending will increase following the NATO summit, while Fincantieri led gains at 3%. Energy stocks outperformed amid rising demand due to high temperatures, with Hera up 1%.

The FTSE MIB Index dropped 504 points or 0.95 percent on Tuesday to close at 52455 points. Losses were led by STMicroelectronics (-7.93%), Prysmian (-7.00%) and Diasorin (-4.50%). Offsetting the fall, top gainers were Fincantieri (2.96%), Davide Campari-Milano (2.91%) and Hera (1.01%).