FTSE MIB Rises From June Low

The FTSE MIB rose to around 50,500 on Friday, rebounding slightly from its lowest level since June, as easing pressure in bond markets offered some relief to equities. Across the bourse, technology shares outperformed, with Prysmian rising 3.5% and STMicroelectronics gaining 2.0%. Auto stocks also advanced, led by Stellantis, which climbed 4.6%, while Ferrari gained 1.0%. Luxury names traded higher as well, with Moncler up 0.7% and Brunello Cucinelli adding 2.2%. Meanwhile, some financials traded lower, including UniCredit falling 1.8%, Intesa Sanpaolo slipping 0.1%, Generali declining 0.3% and Banco BPM losing 0.2%. Eni also fell 0.2% after extending its 20% discount on diesel and gasoline for agricultural and fishing customers until the end of October. Despite Friday's gain, the benchmark index was heading for its worst week since mid-June.

The FTSE MIB plunged 2.2% to 50,238 on Thursday, its lowest level in three and a half months, weighed down by heavyweight financials and utilities. A global sell-off in government bonds pushed sovereign yields higher amid persistent inflation, fiscal concerns and resilient economic growth, while also strengthening expectations of higher-for-longer interest rates across major economies such as the EU and the US. Financials led the losses, with Banca Mediolanum, Mediobanca, UniCredit, FinecoBank and Intesa all falling more than 3.9%. MPS declined 3.7% following reports that CEO Lovaglio had sent a letter to Generali’s (-2.1%) board outlining “possible areas of industrial cooperation” as MPS pursues a takeover bid for Banca Generali. Utilities also declined as European natural gas prices extended gains for a second consecutive session, with Italgas leading losses in the sector at 2%. Luxury stocks also came under pressure, with Moncler falling 2.8% and Brunello Cucinelli declining 2.7%.

The FTSE MIB declined more than 1% to around 50,700 on the first trading day of October, hitting its lowest level since June, as surging global yields and higher oil prices weighed on risk sentiment. Losses were broad-based, with heavyweight financials taking the brunt. UniCredit fell 2.2%, while Intesa Sanpaolo, Banco BPM and BPER Banca dropped 1.4%, 2.3% and 2.1%, respectively. Among other major stocks, Eni and Enel slipped 0.9% and 0.9%, respectively, while Ferrari fell 0.7%. STMicroelectronics and Prysmian bucked the broader trend, gaining 0.9% and 1.7%, respectively. Domestically, Italy is seeking additional flexibility from EU budget rules to account for the impact of higher energy costs. On the data front, the PMI survey showed that Italy’s manufacturing sector returned to marginal expansion in September.