Italian Stocks Plunge to May Low

Italy’s FTSE MIB closed 2.5% lower to 48,384 on Thursday, nearing its lowest level since May, as banking and tech stocks led losses. AI-related shares came under pressure amid renewed valuation concerns, with Technopobe (-7.6%), Prysmian (-7.6%) and STMicroelectronics (-5%) dropping sharply. Protests by truck drivers and farmers in southern Italy also added pressure, causing shortages of food and industrial components and prompting the government to approve additional spending to aid diesel purchases. The BTP-Bund spread widened to 126 bps, reflecting a growing risk premium and weighing on banks, with UniCredit down 4.7%. Stellantis was also affected, falling 0.6% after halting production at three regional plants. European gas prices approached a four-year high, pressuring utilities, while Italgas slipped 1%. Energy firms also declined as oil prices edged lower, while Saipem fell 6% while signing a preliminary agreement with Egypt’s MDC to explore offshore drilling projects in Egypt.