FTSE MIB Muted on Thursday

The FTSE MIB was flat to slightly higher at around 51,800 on Thursday, but remained close to its lowest level in five weeks. Heightened tensions in the Middle East kept investors cautious, although the stabilization in oil prices and bond yields after their sharp gains earlier in the week provided some support to sentiment. At the sector level, gains were seen in STMicroelectronics (+1.8%), Poste Italiane (+1.3%), Prysmian (+1.3%), and Telecom Italia (+0.9%). Financials were also mostly in the green, led by Mediobanca (+0.9%), after reports that the ECB is expected to approve by mid-September its merger into MPS. Banco BPM (+0.6%), Intesa Sanpaolo (+0.5%), and BPER Banca (+0.3%) also advanced. On the flip side, oil major Eni fell more than 1%, tracking crude prices lower, while defence stock Leonardo was down over 2%. On the data front, the PMI survey showed that Italy’s services sector expanded at its fastest pace in over three years.

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%).