The FTSE MIB Index Closes 0.85% Lower

The FTSE MIB Index decreased 444 points or 0.85 percent on Thursday to close at 51543 points. The decline was led by Fincantieri (-5.47%), Prysmian (-3.83%) and Stellantis N.V. (-3.60%). On the upside, the strongest performers were Eni (1.39%), Poste Italiane (1.04%) and Tenaris (0.87%).

The FTSE MIB fell 0.9% to 51,543 on Thursday, as heavyweight financials led losses amid growing expectations of higher-for-longer interest rates. A worsening global selloff is pushing the average yield on global government debt closer to 4%, according to Bloomberg, a level not seen since 2007. In Milan, the yield at the auction of two-year government bonds rose to 3.64%, its highest level since October 2023. Financials underperformed, with MPS falling 0.7% as investors backed its defense strategy against Intesa (0.3%). Tech stocks also declined, led by Technoprobe (-4.8%). Defense stocks Leonardo (-2.3%) and Fincantieri (-5.5%) fell after winning a joint venture with OCCAR. Stellantis dropped 4.3% as the group underperformed in the European auto market in August, according to ACEA. On the upside, Eni (1.4%) extended gains after Italy approved nuclear power generation, ending a nearly four-decade ban in an effort to mitigate the impact of surging energy prices.

The FTSE MIB fell to around 51,800 on Thursday, declining for the third straight session, as sentiment continued to be dampened by lingering uncertainty over US-Iran talks. The absence of concrete progress has pushed oil prices higher, keeping sovereign yields elevated. At the sector level, defense stocks were among the early laggards, with Leonardo and Fincantieri declining around 2% each. Other key decliners included Telecom Italia (-1.4%), STMicroelectronics (-1.3%), and Snam (-0.8%). Meanwhile, financial stocks were mixed as merger talks remained in focus. UniCredit fell 0.3%, while BPER Banca (-0.2%) and Unipol (-0.5%) also traded lower, while Intesa Sanpaolo (+0.8%), Generali (+0.5%), Banco BPM (+0.7%), and MPS (+0.2%) traded in the green.