FTSE MIB Falls as Financials Slide

The FTSE MIB fell 0.9% to 51,543 on Thursday, as heavyweight financials led losses amid growing expectations of higher-for-longer interest rates. A worsening global selloff is pushing the average yield on global government debt closer to 4%, In Milan, the yield at the auction of two-year government bonds rose to 3.64%, its highest level since October 2023. Financials underperformed, with MPS falling 0.7% as investors backed its defense strategy against Intesa (0.3%). Tech stocks also declined, led by Technoprobe (-4.8%). Defense stocks Leonardo (-2.3%) and Fincantieri (-5.5%) fell after winning a joint venture with OCCAR. Stellantis dropped 4.3% as the group underperformed in the European auto market in August, according to ACEA. On the upside, Eni (1.4%) extended gains after Italy approved nuclear power generation, ending a nearly four-decade ban in an effort to mitigate the impact of surging energy prices.