FTSE MIB Edges Lower
The FTSE MIB closed 0.6% lower at 49,754 on Wednesday, pressured by heavyweight financials and tech stocks. Sovereign yields climbed after stronger-than-expected US inflation, driven by higher energy prices, fuelled uncertainty over a potential Fed rate hike in October. In Europe, ECB President Lagarde noted no signs of second-round effects from higher energy prices, while markets continue to expect a rate hike in December. BPER Banca led financial losses, falling 2%, while Banco BPM fell 1.6%. AI-related stocks also declined as higher-for-longer rates threaten to raise borrowing costs for the sector’s already elevated AI buildout. Prysmian dropped 5.5%, while STMicroelectronics fell 1.8%. Utilities outperformed as Italy moved closer to an EU agreement on a mechanism to lower gas prices, with Italgas gaining 2.2% and A2A rising 1.2%. Defense Avio surged 5.3%, leading the index, after signing an agreement with Lockheed Martin to produce solid rocket motors in Virginia.
6% lower at 49,754 on Wednesday, pressured by heavyweight financials and tech stocks. Sovereign yields climbed after stronger-than-expected US inflation, driven by higher energy prices, fuelled uncertainty over a potential Fed rate hike in October. In Europe, ECB President Lagarde noted no signs of second-round effects from higher energy prices, while markets continue to expect a rate hike in December. 6%.
AI-related stocks also declined as higher-for-longer rates threaten to raise borrowing costs for the sector’s already elevated AI buildout. 8%. 2%. 3%, leading the index, after signing an agreement with Lockheed Martin to produce solid rocket motors in Virginia.