Milan closes lower as banks and insurers drag, while Europe rallies
The Italy Stock Exchange ended the session in negative territory on Tuesday, bucking the broader European trend as financial stocks weighed heavily on the Milan index. The FTSE Mib closed down 0.53% at 52,095 points, while major markets across the continent posted gains.
What drove the divergent performance
European markets found support from falling oil prices below $100 per barrel, as investors watched diplomatic efforts aimed at ending the conflict between the United States and Iran and reopening the Strait of Hormuz. Saudi Arabia's decision to restart its East-West pipeline also contributed to declines in gas and petroleum prices.
Paris closed up 0.2%, Madrid gained 0.15%, and Frankfurt was essentially flat at +0.02%. London dipped 0.29%. The Stoxx Europe 600 index rose 0.5%, bolstered by stronger technology and luxury goods sectors.
Wall Street opened in positive territory, with the Dow Jones up 0.35% and the Nasdaq gaining 0.19% in early trading.
Banks and insurers lead Milan's decline
Piazza Affari underperformed its European peers, with Poste Italiane falling 3.9% in its second day of trading following the reopening of the offer for Telecom Italia, which dropped 3.3%. Fineco Bank lost 3.7%, while Generali slipped 3.3%.
The banking sector showed broad weakness: Banco BPM fell 1.7%, BPER Banca and Monte dei Paschi di Siena each lost 1.1%, Intesa Sanpaolo declined 0.7%, and UniCredit shed 0.5%. Insurer Unipol dropped 1.6%.
Energy and utility stocks also struggled: A2A lost 0.7%, while Eni, Enel, and Hera each fell 0.3%.
Bright spots amid the selling
Some stocks defied the downtrend. Stmicroelectronics surged 4.3%, benefiting from strength in the semiconductor sector and optimism around artificial intelligence prospects. Prysmian gained 2.5%, Campari rose 1.9%, and Lottomatica advanced 1.6%. Nexi added 1.4% and Amplifon gained 0.8%.
A notable loser outside the main index was Industrie De Nora, which plunged 18% after Snam — the Italy-based gas infrastructure company — placed 10 million shares at €6.69 each, worth approximately €67 million gross. Snam closed essentially flat at +0.07%.
Bond markets and yields
The spread between Italian 10-year BTPs and German Bunds stood at 89 basis points, with the Italian yield at 4.35% compared to Germany's 3.43%. The modest spread, combined with the yield offering a significant premium to investors, reflects continued confidence in Italy's fiscal position — a far cry from the 251-point spreads seen during the 2022 volatility.
Gas prices fell 2.5% to €71.44 per megawatt-hour, while oil benchmarks declined: WTI lost 1.6% to $94.20 per barrel and Brent dropped 1.5% to $98.80.
