FTSE MIB Rebounds on Friday

The FTSE MIB rose over 1% to around 52,000 on Friday, rebounding from a four-week low, as easing oil prices offered some respite to markets. Crude prices paused their recent rally after the US and Iran were reportedly exploring a phased agreement that could reopen the Strait of Hormuz. At home, Italy's government will meet domestic refiners next month to discuss boosting fuel production in a bid to ease prices, with Eni and Saras among those invited. Across the board, gains were broad-based, spearheaded by heavyweight financials amid merger talks, including UniCredit (+1.8%), Intesa Sanpaolo (+1.2%), Assicurazioni Generali (+1.4%), Banco BPM (+2.1%), BPER Banca (+1.8%) and MPS (+1.4%). Other notable gainers included technology shares STMicroelectronics and Prysmian, both advancing more than 2%. For the week, the benchmark index is heading for a modest gain.

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.