The FTSE MIB Index Closes 1.06% Lower

The FTSE MIB fell 0.2% to below 53,000 in early trading on Wednesday, extending losses from the previous session as elevated global bond yields and higher oil prices continued to weigh on risk appetite. Investors remained wary as long-term government bond yields reached multi-decade highs, putting pressure on technology and other growth stocks as higher yields increase discount rates and reduce the present value of future earnings. Adding to this, oil prices hovered near three-week highs as shipping through the Strait of Hormuz remained severely disrupted, raising the risk of prolonged energy supply disruptions that could push inflation higher and keep interest rates elevated for longer. Tech-related stocks STMicroelectronics fell 1.2%, while Prysmian dropped 1.1%. Banks also traded lower, notably UniCredit (-1.0%), BPER Banca (-0.8%), and FinecoBank (-1.5%).

The FTSE MIB Index dropped 569 points or 1.06 percent on Tuesday to close at 53018 points. Losses were led by STMicroelectronics (-7.35%), Prysmian (-5.00%) and Buzzi Unicem (-3.35%).

The FTSE MIB fell 1.1% to 53,018 on Tuesday, weighed down by soaring bond yields. Sovereign yields climbed to multi-year highs across major economies as a prolonged conflict in the Middle East keeps inflation risks elevated, while technology firms increase bond issuance at longer maturities to finance AI investments. STMicroelectronics led the losses, plunging 7.6%, while Prysmian fell 4.9% as concerns over excessive AI spending persist. Financials also underperformed as higher sovereign yields weighed on their balance sheets, with FinecoBank, UniCredit, BPER Banca and Banco BPM falling more than 1%. Meanwhile, utilities outperformed, recovering from recent selling pressure. Nexi gained 2% as Stripe’s M&A activity improved sentiment across the digital payments sector.