FTSE MIB Snaps Two-Day Decline

The FTSE MIB rose to around 52,250 on Thursday, snapping a two-day decline, as a pause in the oil rally offered some relief to markets. Although oil prices eased, tensions in the Middle East remained elevated as renewed US and Iranian strikes dashed hopes for de-escalation. Shipping through the Strait of Hormuz continued but remained below typical levels. Technology stocks led gains across the bourse, tracking global peers after SK Hynix's US share offering attracted demand exceeding supply by more than sevenfold. STMicroelectronics gained nearly 4%, while Prysmian added almost 2%. Heavyweight financial stocks also traded higher, including Banca Monte dei Paschi di Siena (+1.4%). On the other hand, defense stocks underperformed, with Leonardo and Avio down 1.7% and 2.5%, respectively.

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%).