Italian Stocks Drop to Five-Month Low
Milan’s FTSE MIB plunged 1.5% to 49,086 on Monday, hitting a five-month low as escalating protests across Europe dampened investor sentiment. Mass protests in France escalated over the weekend, while protests over the rising cost of living in Milan also turned disorderly, leading to clashes with police. Sovereign bond yields surged across Europe, pressuring bank balance sheets and weighing on financial stocks. Banco BPM fell 3.7% after Jefferies cut its price target, while Unipol dropped 3.2% following antitrust approval for its control of BPER Banca. UniCredit and Intesa Sanpaolo each lost 2.2%. Stellantis slid 3.2%, tracking broader European auto-sector losses, with Equita’s downward revision of its third-quarter earnings estimates adding to the pressure. Luxury stocks also declined amid early store closures in Italy and looting in France following protests, with Brunello Cucinelli down 1.3% and Moncler falling 1.2%. Defense stocks also underperformed, led by Leonardo (-2.2%).
Milan’s FTSE MIB plunged 1.5% to 49,086 on Monday, hitting a five-month low as escalating protests across Europe dampened investor sentiment. Mass protests in France escalated over the weekend, while protests over the rising cost of living in Milan also turned disorderly, leading to clashes with police. Sovereign bond yields surged across Europe, pressuring bank balance sheets and weighing on financial stocks. Banco BPM fell 3.7% after Jefferies cut its price target, while Unipol dropped 3.2% following antitrust approval for its control of BPER Banca.
UniCredit and Intesa Sanpaolo each lost 2.2%. Stellantis slid 3.2%, tracking broader European auto-sector losses, with Equita’s downward revision of its third-quarter earnings estimates adding to the pressure. Luxury stocks also declined amid early store closures in Italy and looting in France following protests, with Brunello Cucinelli down 1.3% and Moncler falling 1.2%. Defense stocks also underperformed, led by Leonardo (-2.2%).