FTSE MIB Hits More Than 4-Month Low

The FTSE MIB slid below 50,000 on Thursday, hitting its lowest level since May, as rising geopolitical tensions compounded fresh M&A uncertainty in the country’s banking sector. Reports showed that the White House asked the Pentagon to prepare strike options against Iran ahead of the midterm elections, pushing oil prices and bond yields higher again. Domestically, major MPS shareholder Francesco Gaetano Caltagirone said his holding company would oppose Monte dei Paschi di Siena’s plans to acquire Banco BPM and Banca Generali, dealing another blow to the lender’s efforts to fend off Intesa Sanpaolo’s takeover bid. Heavyweight financials bore the brunt, led by Mediobanca (-3.6%), MPS (-2.6%), UniCredit (-2.9%), Intesa Sanpaolo (-2.5%) and Banco BPM (-1.5%). Elsewhere, technology stocks also lagged, with STMicroelectronics down 3.3%, Prysmian down 1.7% and Telecom Italia falling 2.4%.

The FTSE MIB Index dropped 1289 points or 2.51 percent on Wednesday to close at 49972 points. Losses were led by Technoprobe (-6.35%), Prysmian (-4.68%) and UniCredit (-4.40%).

The FTSE MIB plunged 2.5% to 49,972 on Wednesday, tracking a global selloff in bond markets that weighed across sectors. Sovereign yields came under renewed pressure amid concerns over debt sustainability, particularly in France, while elevated energy prices kept inflation risks in focus as tensions around the Strait of Hormuz persisted. Financial stocks underperformed as higher yields pressured banks, with UniCredit, MPS, Intesa Sanpaolo and BPER Banca falling between 3.6% and 4.2%. Technology stocks also declined sharply, mirroring broader sector losses, with Technoprobe leading the index lower at 6%, followed by Prysmian (-4.7%) and STMicroelectronics (-4.1%). Defense stocks weakened as well, led by Leonardo (-2.6%). Stellantis bucked the trend, rising 1.4% as the EU considers restrictions on Chinese hybrid imports to support European automakers, that have been pressured by surging sales from Chinese automakers.