The FTSE MIB Index Closes 0.44% Higher

The FTSE MIB Index went up by 236 points or 0.44 percent on Thursday to close at 53683 points. The rise was led by Avio (5.67%), Banco BPM SPA (3.93%) and Leonardo SpA (2.14%). On the downside, the weakerst performers were Tenaris (-7.04%), Buzzi Unicem (-1.26%) and Snam (-0.77%).

The FTSE MIB rose 0.5% to 53,683 on Thursday, as traders assessed consolidation prospects in the banking sector. Banco BPM jumped 3.9% following a better-than-expected quarterly report and signaling it would consider a tie-up with Credit Agricole. Barclays also reaffirmed its positive view on Banco BPM after the lender reported stronger-than-expected results. Meanwhile, BPER Banca (-0.8%) and Unipol (-0.8%) slipped, amid Intesa Sanpaolo's (0.5%) proposed acquisition of MPS (0.1%), under which MPS' insurance operations would be sold to Unipol, BPER's largest shareholder. Utilities were mixed as Italy was placed under its highest heat alert, boosting expectations for electricity demand. Hera added 0.5%, while Snam slipped 0.5%. Defense stocks outperformed, lifted by Avio (5.7%) and Leonardo (2%). Tenaris plunged 6.9% after reporting a 4% annual drop in second-quarter sales and warning that weak market conditions are expected to persist in the second half.

The FTSE MIB rose to around 53,800 on Thursday, remaining close to record levels, as markets continued to assess the latest corporate earnings while tracking developments in the Middle East. Iran announced an agreement with Oman on a shipping route through the Strait of Hormuz, raising hopes of stronger energy flows through the key waterway. Officials said a joint statement was being finalized but stressed the arrangement would not constitute a full reopening of the Strait. Across the bourse, Banco BPM led gains of more than 4% after raising its full-year guidance following better-than-expected Q2 earnings. Meanwhile, Tenaris was little changed after reporting Q2 net sales down 4% both sequentially and year-over-year, citing shipment delays to Middle East customers caused by shipping disruptions, along with higher logistics and raw material costs. On the data front, Italy's construction downturn softened in July, while industrial output unexpectedly fell in June.