The FTSE MIB Index Closes 0.28% Lower

The FTSE MIB Index dropped 145 points or 0.28 percent on Friday to close at 52100 points. Losses were led by Eni (-3.29%), Diasorin (-1.82%) and Brunello Cucinelli (-1.63%). Offsetting the fall, top gainers were Lottomatica (2.64%), Prysmian (2.32%) and STMicroelectronics (1.99%).

The FTSE MIB declined 0.3% to 52,100 on Friday, weighed down by financials following US labor data that came in well above expectations. The figures pointed to a resilient labor market, prompting traders to raise expectations for a Fed rate hike at its September meeting. At the same time, the ECB is also expected to raise rates at next week’s meeting, which could weigh on credit demand for lenders. UniCredit fell 1.2% as the bank moved closer to taking control of Commerzbank and is set to meet with the German finance minister. Meanwhile, the ECB approved MPS’s (0.3%) merger with Mediobanca. Energy shares also traded lower. On the upside, Stellantis gained 1.8% after a coalition of major US automakers urged lawmakers to permanently ban Chinese vehicles from the US. STMicroelectronics and Prysmian added 1.9% and 2.1%, respectively, while utilities also outperformed, led by A2A (1.7%).

The FTSE MIB fell to around 52,000 on Friday, giving back some gains from the previous session and underperforming its regional peers, as losses among heavyweight financials weighed on the index. Shares of Monte dei Paschi di Siena fell around 0.6% after the lender received ECB approval to merge recently acquired Mediobanca (-0.6%) into the group, with investors weighing the integration of the two banks. Banca Generali also declined 0.2% despite reporting its best-ever net inflows for both August and the first eight months of the year. Other laggards included UniCredit (-1.6%), Intesa Sanpaolo (-0.5%), Banco BPM (-1.7%) and BPER Banca (-0.9%). On the flipside, technology stocks outperformed, with STMicroelectronics and Prysmian gaining 1.9% and 1.1%, respectively. On the data front, Italy’s retail sales unexpectedly fell 0.4% month-on-month in July, defying expectations for a 0.2% increase. For the week, the benchmark index is heading for a fourth consecutive decline.