The FTSE MIB Index Closes 0.24% Lower

The FTSE MIB edged down 0.2% to 51,792 on Wednesday, as traders assessed corporate developments against escalating tensions in the Middle East as the US carried out further strikes on Iran. Utilities remain under selling pressure as European gas prices continue to climb and European countries grapple with low natural gas stockpiles ahead of winter. Heavyweight financials were mixed while focus remains in merger talks. Intesa Sanpaolo (-0.2%) stated it does not expect its takeover bid of MPS (-0.2%) to be hampered by defence bids, in an answer to Consob. Meanwhile, a council meeting in Siena added pressure on the shares from the Ministry of Economy and Finance to defende MPS's integrity, and adding that its headquarters must remain in the region. Commerzbank's CEO has confirmed direct talks were underway with UniCredit (0.5%). On the upside, tech stocks outperformed, with STMicroelectronics adding (3.3%) after Citigroup confirmed its buy recommendation of the stock. Prysmian added 1.7%.

The FTSE MIB Index fell 123 points or 0.24 percent on Wednesday to close at 51792 points. Leading the losses are Lottomatica (-10.42%), Italgas (-3.46%) and Stellantis N.V. (-2.64%). Top gainers were STMicroelectronics (3.33%), Amplifon (2.55%) and Prysmian (2.24%).

The FTSE MIB extended its decline to around 51,800 on Wednesday, hitting its lowest level in almost five weeks, as escalating Middle East tensions pushed oil prices higher and strengthened concerns over inflation and tighter monetary policy. The bond sell-off also intensified, with Italian bond yields reaching their highest levels since late 2023, adding pressure on equities. Domestically, attention remained on banking consolidation, with Intesa Sanpaolo saying it does not expect its buyout offer for MPS to be hampered by the target’s defensive bids or clarifications sought by Consob. Intesa edged up 0.1%, while MPS slipped 0.2%. Banco BPM gained 0.2%, while Banca Generali fell 0.5%. Outside financials, Lottomatica dropped 2% after announcing its takeover of Spain’s Cirsa. On the data front, Italy’s annual producer inflation picked up to 7.8% in July, the highest level since February 2023.