The FTSE MIB Index Closes 0.58% Lower

The FTSE MIB Index fell 302 points or 0.58 percent on Wednesday to close at 51875 points. Leading the losses are Leonardo SpA (-3.75%), Fincantieri (-3.61%) and Poste Italiane (-2.79%). Top gainers were Eni (1.91%), Diasorin (0.52%) and Recordati (0.29%).

The FTSE MIB fell 0.5% to 51,875 on Wednesday ahead of ECB's meeting tomorrow, which could weigh on credit demand for investment in defense, AI and energy transition. Heavyweight financials declined as eurozone sovereign yields rose to multi-year highs while markets widely expect a rate hike by the ECB, weighing on the bank's balance sheets. Adding to the pressure, talk of taxing banks' profits intensified as governments seek aid for budget deficits. Asset managers were also affected, with Azimut and Banca Mediolanum falling over 1.5%. Defense stocks Leonardo (-4%) and Fincantieri (-3.6%) led losses on the index. STMicroelectronics fell 1.1%. Stellantis declined 2.2%, as China's growing electric-truck market pressures Western manufactures. Luxury stocks also declined amid weak demand from China and lower spending due to the war in the Middle East. Attacks intensified in the region, lifting brent prices above $100. Conversely, energy stocks outperformed.

The FTSE MIB fell to around 51,900 on Wednesday, extending losses from the previous session and hitting a one-week low, as rising oil prices continued to weigh on markets. Brent crude surged to $100 per barrel as US-Iran tensions intensified, raising inflation concerns and increasing pressure on central banks to maintain or further tighten restrictive monetary policy. Financial stocks were among the worst performers, with notable declines in UniCredit (-2%), Banca Mediolanum (-2.1%), Intesa Sanpaolo (-0.9%), BPER Banca (-1.4%), and Unipol Gruppo (-1.2%). Shares of Monte dei Paschi (-0.6%) also came under pressure as documents for its bids for Banca Generali and Banco BPM are set to be submitted to market watchdog Consob between Wednesday and Thursday. On the flipside, oil major Eni rose more than 1%, while auto stocks Ferrari and Stellantis gained 1.9% and 0.7%, respectively.