The FTSE MIB Index Closes 0.14% Lower

The FTSE MIB Index dropped 74 points or 0.14 percent on Tuesday to close at 51555 points. Losses were led by UniCredit (-2.34%), Moncler (-1.69%) and Bper Banca (-1.66%). Offsetting the fall, top gainers were Tenaris (3.34%), Terna Rete Elettrica Nazionale (2.76%) and Saipem (1.76%).

The FTSE MIB closed largely unchanged at 51,555 on Tuesday, amid gains in defense and utilities while heavyweight financials were mixed amid ongoing merger talks. UniCredit fell 2.3% after holding talks with the German Finance Minister regarding its stake in Commerzbank. The Italian lender expects to take full ownership of the stake by the fourth quarter. Credit Agricole, the largest investor in Banco BPM (-0.4%), stated that rival MPS’s (1.5%) offer was unattractive. Defense stocks advanced, with Leonardo (1.1%) and Fincantieri (0.5%) benefiting from the munitions shortage highlighted by the Pentagon. Meanwhile, Italy is considering extending its general excise tax cut amid rising energy costs. The country became the EU's top LNG importer in July, supported by government incentives, resulting in higher inventories in August, while the EU average runs lower. Utilities outperformed as European gas prices fell, led by Terna (2.9%).

The FTSE MIB slid over 1% to around 50,800 on Tuesday, its lowest level in three months, as higher oil prices and rising global bond yields weighed on risk appetite. Escalating tensions in the Middle East continued to fuel oil-driven inflation concerns, raising expectations of further interest rate hikes by central banks worldwide this year. Financial stocks bore the brunt of the broad decline as Italian 10-year bond yields rose to levels last seen in late 2023. UniCredit fell 2.5%, Intesa Sanpaolo declined 1.9%, Assicurazioni Generali dropped 1%, Mediobanca lost 2%, BPER Banca fell 2.4%, and Banca Monte dei Paschi di Siena declined 2.2%. Other major stocks also traded lower, including Telecom Italia (-1.2%), Enel (-1.4%), Ferrari (-1.4%), and Poste Italiane (-1.6%). On the flip side, defense stock Leonardo and utility stock Tenaris were resilient, both rising more than 1%.