The FTSE MIB Index Closes 0.85% Lower

The FTSE MIB fell 0.9% to close at 52,411 on Wednesday amid losses for financial companies, utilities, and the AI stocks. Banks and insurers closed lower as strikes between the US and Iran sustained inflationary threats and lifted Italian bond yields, denting the outlook on credit and their balance sheets. The consequent increase in natural gas prices lowered margins for utility providers, driving Enel, Italgas, and Terna to drop over 1%. Semiconductor stocks were the index's weakest performers, with STMicroelectronics dropping around 4%, despite ASML reporting better-than-expected second-quarter as memory producers in the US plunged. Prysmian also declined 2.6%. On the other hand, Moncler and Ferrari gained following strong results from Richemont.

The FTSE MIB Index fell 451 points or 0.85 percent on Wednesday to close at 52411 points. Leading the losses are STMicroelectronics (-4.34%), Prysmian (-2.67%) and Avio (-2.52%). Top gainers were Nexi (4.52%), Stellantis N.V. (3.86%) and Brunello Cucinelli (3.31%).

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.