FTSE MIB closes up 0.7% at 52,654 on Friday
The FTSE MIB rose 0.7% to 52,654 Friday, as upbeat cross-sector sentiment outweighed hawkish Fed tone on inflation. M&A talk and merger leadership plans supported financials.
The FTSE MIB rose 0.7% to 52,654 on Friday, supported by upbeat sentiment across sectors.
Merger talks continued to overshadow financials, with Generali (0.5%) saying MPS’s (0.3%) takeover bid for Banca Generali offers “growth opportunities.” Unipol's (1.2%) Chairman said MPS would “lead” a merger with BPER (2.2%) and become the second-largest banking group in Italy.
Meanwhile, Fed sentiment turned hawkish following Fed Chairman Warsh's statements that if inflation wasn't returning to target, they "would have work to do".
The ECB is also expected to raise rates in September, potentially weighing on lenders.
European automakers are feeling the squeeze from Chinese carmakers’ advances, with Stellantis (2.3%) reportedly allowing Chinese automakers to share their factories to ease overcapacity.
Utilities gained as European gas prices declined.
Meanwhile, defense stocks underperformed following reports of a possible reversal by the UK Finance Minister on planned defense spending.