The FTSE MIB Index Closes 1.22% Lower

The FTSE MIB tumbled 1.2% to 51,817 on Wednesday amid declining risk sentiment. Unicredit slid 2.9% after raising its potential stake in Commerzbank to 47.6%, moving closer to gaining effective control of the German bank despite strong opposition from the German government, Commerzbank’s management and labor representatives. Still, any attempt to exercise greater influence must await regulatory clearance of the tendered shares, while ECB approval to lift its direct stake above 30% could take up to six months. The broader banking sector also retreated as energy prices surged with the exchange of strikes between Iran and the US, reigniting inflation concerns and raising the BTP-Bund spread by 4.2bps to 80bps. Elsewhere, Stellantis plunged 5.8% after a sharp drop in China sales deepened concerns over the European auto sector, dragging Ferrari down 3.5%. Defense stocks also declined, while energy shares ended mixed amid heightened geopolitical tensions.

The FTSE MIB Index fell 638 points or 1.22 percent on Wednesday to close at 51817 points. Leading the losses are Stellantis N.V. (-6.02%), Brunello Cucinelli (-4.51%) and Fincantieri (-3.88%).

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.