FTSE MIB Extends Gains

The FTSE MIB rose to around 52,000 on Thursday, extending gains from the previous session and tracking moves across regional peers. Markets digested the Federal Reserve’s expected 25-bps rate hike and signal of at least one more increase this year, as its continued focus on containing inflation helped bolster confidence in the central bank’s policy stance. Easing bond yields and softer oil prices provided additional support to market sentiment. At the sector level, luxury names outperformed, with Moncler and Brunello Cucinelli advancing more than 2%. Other notable gainers included Fincantieri (+1.9%), Leonardo (+0.7%) and Stellantis (+2%). Most heavyweight financials also traded higher. On the flipside, STMicroelectronics slipped more than 1%.

The FTSE MIB Index rose 414 points or 0.80 percent on Wednesday to close at 51969 points. Leading the gains are Prysmian (3.55%), Italgas (2.42%) and Brunello Cucinelli (2.22%). Top losers were Stellantis N.V. (-2.99%), Nexi (-1.19%) and Eni (-0.80%).

The FTSE MIB rose 1% to 51,969 on Wednesday, amid gains across sectors. Sovereign yields declined as the surge in crude prices eased, while markets awaited the Fed’s monetary policy decision after the close, with a rate hike widely expected. Although higher rates could weigh on credit demand, financials outperformed in Milan. Consob opened an investigation into Intesa’s (0.6%) bid for MPS (-0.1%). Although Intesa had agreed to dispose of half of MPS’s branches, preliminary checks by the authorities indicated that the deal could still raise competition concerns regardless of the divestment. Tech stock STMicroelectronics advanced 2%, while defense stocks Leonardo (1%) and Avio (0.4%) outperformed, driven by renewed signs of the need to rebuild Western arsenals. Utilities also extended recent gains, led by A2A (2%). Stellantis dropped 3.3%, while Prime Minister Meloni announced the abolition of road tax for small and medium-sized vehicles.