The FTSE MIB Index Closes 1.60% Lower

The FTSE MIB Index dropped 840 points or 1.60 percent on Friday to close at 51545 points. Losses were led by Stellantis N.V. (-5.95%), Hera (-3.02%) and UniCredit (-2.83%).

The FTSE MIB plunged 1.7% to 51,545 on Friday amid broad selling as energy-supply concerns weighed on the index. Eurozone sovereign yields rebounded after reports that Saudi Arabia would not supply oil to European buyers next month, raising fears of further inflationary pressure. In Milan, worries over Italy's swelling public debt also weighed, with the latest budget plan projecting debt near 139% of GDP, replacing Greece at the eurozone's bottom. Higher bond yields pressured bank balance sheets, with Unipol, UniCredit, Banco BPM and BPER Banca all falling more than 2%. Defense stocks underperformed, led by Fincantieri (-1%). Utilities reversed recent gains as European gas prices rebounded, led by A2A (-3.2%). Stellantis plunged 5.2% after reports it plans to sell its Toronto facility, citing "no long-term business case" for auto manufacturing there amid unpredictable US–Canada trade policies.

The FTSE MIB fell to around 51,900 on Friday, ending a two-day gain and tracking regional peers as markets capped a week of major central-bank decisions. The Federal Reserve and Bank of Japan raised rates this week, while the Bank of England left rates unchanged. Meanwhile, traders pared back bets on further European Central Bank tightening as high energy prices threatened growth and could eventually ease inflationary pressures. At the sector level, oil major Eni fell more than 1%, tracking lower oil prices amid hopes for alternative routes for Middle Eastern barrels. Energy and utility stocks also traded lower, including Enel (-1.2%), Saipem (-1.4%), Snam (-0.8%), Terna (-0.5%) and A2A (-0.7%). For the week, the benchmark index was heading for a decline of about 1%. On the economic data front, Italy’s current account surplus reached €7.4 billion in July, its largest in a year.