FTSE MIB Inches Lower

The FTSE MIB fell 0.2% to 51,760 on Monday, paring earlier gains following reports of several planned tax cuts in the government’s 2027 budget plan. Ahead of next year’s general election, Prime Minister Meloni’s latest and upcoming budget is reportedly set to include multiple tax cuts, adding to uncertainty surrounding the country’s fiscal position amid elevated energy prices. Sovereign yields also climbed, weighing on heavyweight financials. Banks were mixed, with Finecobank falling 0.9%, while Banca Mediolanum gained 1.3%. Insurer Generali also underperformed, falling 1.5%. Eni advanced 2.7% amid rising oil prices and following its decision to cap fuel prices in Italy, potentially averting additional taxation by the government. Luxury stocks traded higher, led by Brunello Cucinelli (2.3%) and Moncler (2.1%). Meanwhile, Telecom fell 2.3% following the conclusion of Poste Italiane’s takeover bid. Other notable decliners included Inwit (-2.5%), Ferrari (-2.3%) and Enel (-1.6%).