FTSE MIB Hits Two-Week Low

The FTSE MIB fell to around 53,300 on Tuesday, hitting a two-week low, as fading hopes for a diplomatic resolution in the Middle East weighed on sentiment. Iran signaled a tougher military response as negotiations stalled, while Washington declined to extend the temporary ceasefire. The developments pushed oil prices higher, reinforcing inflation concerns and fueling expectations of tighter monetary policy, while surging bond yields further pressured equities by raising borrowing costs. Financial stocks were among the early laggards, with UniCredit down 0.5%, Banco BPM 1.1%, BPER Banca 1%, and FinecoBank 0.9%. Generali also fell 0.6% after JPMorgan cut its rating on the Italian insurer to “Neutral” from “Overweight,” despite raising its price target to €46 from €44. Technology stocks also underperformed, with STMicroelectronics and Prysmian down 3% and 2%, respectively.

The FTSE MIB closed largely unchanged at 53,587 on Monday, as positive corporate news offset a mostly negative session for banks. Technology stocks led gains, tracking broader sector strength following strong second-quarter revenue from Anthropic. STMicroelectronics rose 5%, while Prysmian added 2.4%. Ferrari gained 1.4% following the auction of its first fully electric vehicle for $40 million. Meanwhile, with markets largely ruling out a September Fed rate hike, Italian financials remained under pressure from ongoing consolidation prospects. MPS CEO reiterated over the weekend the need to preserve the bank’s independence amid a takeover bid from Intesa Sanpaolo (-0.5%). UniCredit declined 0.7% amid reports that Berlin could sell its 12% stake in Commerzbank to the lender. On the downside, Nexi fell 4.3%, and Stellantis dropped 4.1% after recalling 955,000 vehicles worldwide.

The FTSE MIB Index went up by 3 points or 0.01 percent on Monday to close at 53587 points. The rise was led by STMicroelectronics (5.04%), Prysmian (2.66%) and Finecobank (2.08%). On the downside, the weakerst performers were Stellantis N.V. (-3.90%), Fincantieri (-3.66%) and Nexi (-3.58%).