The FTSE MIB Index Closes 1.68% Lower

The FTSE MIB Index decreased 883 points or 1.68 percent on Monday to close at 51629 points. The decline was led by Prysmian (-6.86%), STMicroelectronics (-6.68%) and Tenaris (-3.73%).

The FTSE MIB plunged 1.7% to 51,629 on Monday, amid mounting concerns over global security that reverberated across sectors. Tech stocks Prysmian (-7.1%) and STMicroelectronics (-6.5%) led the decline after major AI firms called for a slowdown in the boom of capital expenditure on the sector, citing safety concerns. Financial stocks also fell sharply. Expectations of rate hikes by major economies contributed to a surge in sovereign yields, while rising oil prices following the closure of Saudi Arabia’s East-West pipeline added to the pressure. MPS fell 2.9% while stating that its buyout offers for BPM and Banca Generali cannot be revoked if Intesa Sanpaolo’s takeover bid goes through. Defense stocks underperformed as European leaders called for greater investment in Arctic defenses amid pressure from Russia. Meanwhile, Stellantis dropped 2.8% as it considered selling its factory in Toronto, while Prime Minister Carney turned to the EU following the collapse of trade talks with the US.

The FTSE MIB fell to around 52,300 on Monday, giving back some of last week’s gains, with technology-related stocks leading losses. STMicroelectronics and Prysmian fell 4.1% and 5.1%, respectively, as investors reacted to Anthropic’s call over the weekend for a slower pace of AI development amid growing safety concerns. Risk appetite was also weakened by a renewed surge in oil prices amid escalating Middle East tensions and supply concerns. Other notable laggards included Enel (-1.0%) and Buzzi Unicem (-1.2%), while most financial stocks also traded lower. Monte dei Paschi di Siena fell 0.4% and Banco BPM 0.2% after MPS said its offers for Banco BPM and Banca Generali would remain valid even if Intesa Sanpaolo takes control of MPS. MPS said the implied premiums stood at 3.4% for Banco BPM and 12.8% for Banca Generali as of September 11. Generali rose 0.7%, while Intesa fell 0.3%.