The FTSE MIB Index Closes 1.35% Lower

The FTSE MIB Index fell 674 points or 1.35 percent on Thursday to close at 49298 points. Leading the losses are STMicroelectronics (-3.59%), Telecom Italia (-3.55%) and Stellantis N.V. (-3.37%).

The FTSE MIB closed 1.4% lower at 49,298 on Thursday, reaching a more than four-month low, weighed down by financials and Milan's bank mergers. Banks underperformed as French concerns continued to pressure the sector, while the Italian government held talks with banks and energy groups over a potential contribution to state finances. MPS fell 2.9% after its second-largest shareholder said it would not support its dual bid for Banco BPM (-2%) and Banca Generali. Crédit Agricole also decided not to tender its Banco BPM shares to MPS. Generali fell 1.4% amid reports it could be preparing a bid for Banca Generali. UniCredit dropped 3.1% as Germany’s finance minister said he was coordinating with counterparts on its takeover bid for Commerzbank. Stellantis lost 3% as higher fuel prices boosted demand for EVs. On the upside, utilities advanced after US-Russia talks on potential US investment in Nord Stream, a pipeline that delivered gas to Germany before the conflict with Ukraine.

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%.