The FTSE MIB Index Closes 0.61% Lower

The FTSE MIB Index decreased 303 points or 0.61 percent on Wednesday to close at 49754 points. The decline was led by Prysmian (-5.14%), Amplifon (-2.38%) and Bper Banca (-1.97%). On the upside, the strongest performers were Avio (5.34%), Davide Campari-Milano (2.92%) and Italgas (2.24%).

The FTSE MIB closed 0.6% lower at 49,754 on Wednesday, pressured by heavyweight financials and tech stocks. Sovereign yields climbed after stronger-than-expected US inflation, driven by higher energy prices, fuelled uncertainty over a potential Fed rate hike in October. In Europe, ECB President Lagarde noted no signs of second-round effects from higher energy prices, while markets continue to expect a rate hike in December. BPER Banca led financial losses, falling 2%, while Banco BPM fell 1.6%. AI-related stocks also declined as higher-for-longer rates threaten to raise borrowing costs for the sector’s already elevated AI buildout. Prysmian dropped 5.5%, while STMicroelectronics fell 1.8%. Utilities outperformed as Italy moved closer to an EU agreement on a mechanism to lower gas prices, with Italgas gaining 2.2% and A2A rising 1.2%. Defense Avio surged 5.3%, leading the index, after signing an agreement with Lockheed Martin to produce solid rocket motors in Virginia.

The FTSE MIB traded nearly flat on Wednesday, extending the muted session from the previous day, as investors assessed developments in the banking sector. MPS fell 0.3% after ISS urged shareholders to reject its proposed acquisitions of Banco BPM (-0.8%) and Banca Generali (-0.7%), as well as a €4 billion special dividend, citing execution and integration risks. Intesa Sanpaolo lost 0.7% and BPER Banca shed 0.8%. Other notable laggards included Ferrari, which fell 0.7%, Poste Italiane, which lost 0.5%, and Banca Mediolanum, which dropped 1.1%. These losses were offset by gains in technology stocks, with STMicroelectronics rising 2% amid improved sentiment following ASML’s stronger-than-expected earnings and upbeat sales outlook. Luxury stocks also advanced, with Moncler gaining 1.5% and Brunello Cucinelli rising 2%.