Piazza Affari closes lower as oil surge pushes Italian borrowing costs to earlier highs
Milan's FTSE Mib index ended the session down 0.21% to 51,759 points, wiping out early gains as energy prices surged and government bond yields climbed. The spread between Italian and German ten-year bonds — a key measure of borrowing costs for Italy — widened to 94 points at the close, with the Italian yield rising 8 basis points to 4.589%.
What moved the Milan market
Italian, Europe-based energy giant Eni led gains throughout the day, closing up 2%. Monday, September 29, 2026, marked the first trading session since Eni introduced a voluntary price cap on petrol and diesel, limiting pump prices to €1.99 per litre for petrol and €2.19 for diesel. Analysts at Equita estimate the measure could cost Eni €85–100M per month, a manageable figure against expected annual profits of around €10bn. The move also reduced speculation about a government windfall tax on energy companies.
Amplifon was the session's top performer, surging 6% after analysts at Equita forecast a strong third quarter for the hearing aid retailer. Among carmakers, Stellantis rose 2.5% while Moncler gained 2.6% in the luxury sector.
Several heavyweight stocks weighed on the index. Inwit fell 2.6%, Ferrari dropped 2.5%, and Enel slid 2.2%. Telecom Italia (Tim) extended losses to close 1.7% lower, following the end of Poste Italiane's public offer which reached 85.82% of capital. Banca Ifis, a specialist lender, continued to slide after recent regulatory requests from the Bank of Italy and finished 6% lower.
Why bond markets are under pressure
Crude oil prices jumped on mounting concerns over the Middle East conflict and potential supply disruptions through the Strait of Hormuz. US benchmark WTI crude rose as much as 4.32% to $96.4 per barrel, while Brent climbed 4.2% to $108.7. European natural gas prices also rose, reaching €74.17 per megawatt-hour, partly due to maintenance cuts in Norwegian production.
The rally in energy commodities stoked fears of a new inflationary pulse, pushing up government bond yields across Europe. The German Bund yield — the benchmark for eurozone borrowing — rose to 3.64%, its highest level since September 2008. Italy's ten-year yield reached 4.58%, a peak not seen since November 2023.
On currency markets, the dollar strengthened to almost $1.14 against the euro.
European and US markets react to geopolitical tension
Major European bourses finished mixed but largely flat. Frankfurt closed down 0.13%, London fell 0.1%, and Paris ended virtually unchanged at +0.01%. The pan-European Stoxx 600 index held onto a small gain of 0.4%, supported by the energy sector which rose 1.3%.
US markets opened lower as investors priced in oil supply risks. The Dow Jones fell 0.72% to 51,454 points in early trading, while the Nasdaq lost 0.51% and the S&P 500 dropped 0.48%.
Note: References to US-Iran negotiations mediated by Qatar and statements attributed to former President Donald Trump have been removed for lack of corroboration in source materials.
