FTSE MIB Declines

The FTSE MIB fell to around 52,400 on Wednesday, following a four-day winning streak, as markets kept a close eye on developments in the Middle East. Mounting tensions between the US and Iran continued to support oil prices, weighing on sentiment and heightening concerns that inflation could remain elevated, keeping interest rates higher for longer. Markets are now pricing in two rate hikes in 2026, with a September increase fully anticipated. Losses were broad-based, with Unicredit (-1%), Assicurazioni Generali (-1.3%), Prysmian (-1.2%), Leonardo (-1.6%), and Terna (-1.3%) among the biggest decliners. On the other hand, luxury stocks outperformed, with Moncler and Brunello Cucinelli rising 1% and 1.9%, respectively.

The FTSE MIB rose 0.1% to close at 52,862 on Tuesday, supported by lower-than-expected inflation data in the US. The data eased expectations of a July Fed rate hike, although financial stocks posted mixed performances. Fincantieri jumped 2.7% after unveiling plans to integrate artificial intelligence into its technological innovation strategy, while Intesa Sanpaolo (0.3%) reaffirmed its buy rating on the stock. Utilities also advanced amid increased cooling demand, led by A2A (1.8%). Hera gained 1.2% after signing a binding agreement to acquire a 70% stake in Kronos Polymer Polska, while oil major Eni added 0.7%, supported by volatile oil prices. Inwit was the session's worst performer, falling 3.8% after an Italian court rejected its request to suspend the Fastweb+Vodafone termination from the MSA. Meanwhile, the European Central Bank selected banks and payment firms for the digital euro project, including BPMS (0.7%), Nexi (0.2%) and UniCredit (-0.5%).

The FTSE MIB Index gained 53 points or 0.10 percent on Tuesday to close at 52863 points. Gains were led by Prysmian (3.09%), Fincantieri (2.66%) and Avio (2.04%). Biggest losers were Infrastrutture Wire (-2.99%), Davide Campari-Milano (-1.60%) and Brunello Cucinelli (-1.46%).