FTSE MIB Plunges to Lowest in Over Three Months
The FTSE MIB plunged 2.2% to 50,238 on Thursday, its lowest level in three and a half months, weighed down by heavyweight financials and utilities. A global sell-off in government bonds pushed sovereign yields higher amid persistent inflation, fiscal concerns and resilient economic growth, while also strengthening expectations of higher-for-longer interest rates across major economies such as the EU and the US. Financials led the losses, with Banca Mediolanum, Mediobanca, UniCredit, FinecoBank and Intesa all falling more than 3.9%. MPS declined 3.7% following reports that CEO Lovaglio had sent a letter to Generali’s (-2.1%) board outlining “possible areas of industrial cooperation” as MPS pursues a takeover bid for Banca Generali. Utilities also declined as European natural gas prices extended gains for a second consecutive session, with Italgas leading losses in the sector at 2%. Luxury stocks also came under pressure, with Moncler falling 2.8% and Brunello Cucinelli declining 2.7%.
2% to 50,238 on Thursday, its lowest level in three and a half months, weighed down by heavyweight financials and utilities. A global sell-off in government bonds pushed sovereign yields higher amid persistent inflation, fiscal concerns and resilient economic growth, while also strengthening expectations of higher-for-longer interest rates across major economies such as the EU and the US. 9%. 1%) board outlining “possible areas of industrial cooperation” as MPS pursues a takeover bid for Banca Generali.
Utilities also declined as European natural gas prices extended gains for a second consecutive session, with Italgas leading losses in the sector at 2%. 7%.