Indexes are deep in negative territory once again today at Piazza Affari, with the Milan Stock Exchange the worst performer in Europe, weighed down especially by a collapse in the banking sector.
After Tokyo's stock market closed sharply lower this morning, with the Nikkei index shedding over 3%, a knock-on effect on European markets was inevitable.
Investors remain jittery for the second consecutive day following escalating US and Israeli attacks on Iran.
Oil prices have surged after the shutdown of refineries across the Middle East and the disruption of shipping routes through the Strait of Hormuz, a passageway for about 20% of the world's oil supply.
Shortly after 9 a.m., Brent futures were up by $3.15 at $80.89 per barrel. Supertanker shipping costs have hit all-time highs. Gas prices (NGc1) also soared following Qatar's suspension of liquefied natural gas production, which accounts for roughly 20% of global supply.
Around 9:40 a.m., the Ftse Mib index was down 3%, completely wiping out gains made since the start of the year.
Banks are deep in the red, with the sector index falling 4%. Among the heavyweights, UNICREDIT is down 4.4% and INTESA by 3.6%. MEDIOBANCA also fell, dropping 3.65%, and GENERALI declined by 3.5%.
In the defense sector, LEONARDO rose 1.65%, while FINCANTIERI lost 2.7%.
The utilities sector is also deep in the red, after being bought yesterday, with declines of over 3% for ENEL, A2A, and ITALGAS.
In the energy sector, ENI is flat after climbing yesterday on higher oil, gas, and refining prices. Selling continues, however, for oil services companies such as SAIPEM (-2.2%) and MAIRE (-1.9%) due to their significant exposure to the Gulf region; the latter is set to present an update to its strategic plan to the market tomorrow.
On a positive note, LOTTOMATICA is up 5% following its results and 2026 guidance. According to a daily report from Intermonte, "fourth quarter 2025 results are in line with expectations, while the 2026 EBITDA estimates are 1% higher."
(Giancarlo Navach, editing by Stefano Bernabei)
