FTSE MIB Scales Fresh Record High

The FTSE MIB climbed to around 53,700 on Wednesday, hitting a fresh record high, as optimism over diplomatic efforts between the US and Iran boosted investor sentiment. President Donald Trump said negotiations with Iran were progressing well and that more clarity could emerge within 48 hours, while Qatar announced that a proposal addressing the Strait of Hormuz had been drafted. Despite signs of easing geopolitical tensions, defense stocks outperformed, with Leonardo and Avio rising more than 2% and 4%, respectively. Automakers also advanced, with Stellantis gaining about 1.5% and Ferrari nearly 1%. Banco BPM edged higher ahead of its scheduled Q2 earnings release. Meanwhile, the latest PMI survey showed Italy's private sector expanded at its fastest pace since November 2025, with services activity also exceeding expectations.

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.