The FTSE MIB Index Closes 1.26% Higher

The FTSE MIB Index gained 669 points or 1.26 percent on Tuesday to close at 53541 points. Gains were led by Avio (4.66%), STMicroelectronics (4.21%) and Prysmian (3.35%).

The FTSE MIB rose 1.3% to a record closing high of 53,541 on Tuesday, supported by gains in financials, AI-related and defense stocks. Defense shares outperformed after Italy's state lender CDP unveiled plans to expand the country's defense sector and is evaluating two acquisitions following last week's agreement to acquire a majority stake in cybersecurity firm T-Defence. Avio led gains at 4.7% and Leonardo advanced 3.3%. STMicroelectronics advanced 3.6% while Prysmian added 3.5% amid renewed optimism over artificial intelligence. Financials remained supported as the BTP-Bund spread narrowed to 78bps on easing inflation concerns, led by Unipol (2.8%). UniCredit added 2% after reports that Germany's financial regulator cleared the lender to proceed with its application for a controlling stake in Commerzbank. Utilities also advanced as lower European gas prices and expectations of stronger winter LNG imports improved sentiment, led by A2A (1%). Eni fell 1.9% weighed by lower oil prices.

The FTSE MIB climbed to around 53,400 on Tuesday, hitting a fresh record high and tracking gains across its European peers as global risk appetite improved. Investors also continued to await the latest corporate earnings while monitoring developments in the Middle East after mixed signals from the US and Iran over the prospects for peace negotiations. Gains were broad-based across the bourse, with technology shares drawing support as the recent selloff in semiconductor and other AI-related stocks showed signs of fading. STMicroelectronics and Prysmian each rose more than 2%. Heavyweight financials also traded firmly higher, including UniCredit (+1.4%), Banca Mediolanum (+1.0%), BPER Banca (+1.3%), Banca Monte dei Paschi di Siena (+1.1%), and FinecoBank (+1.8%). Defense stocks also posted solid gains. On the data front, Italy's retail sales rose 3.1% year-on-year in June, accelerating from a 2.2% increase in May.