The escalation of tensions in the Middle East is sending shockwaves through global markets, and Milan's Piazza Affari is no exception. Like the rest of Europe, it is weighed down by cyclical sectors such as finance, automotive, and luxury.
Futures on U.S. indices also signal a weak opening for Wall Street, while crude oil prices have jumped 8% on fears of supply disruptions from Iran following Israel's large-scale overnight attack.
Around 12:30 pm, the FTSE Mib index was down 1.4%, with trading volumes hovering around €1.5 billion. For the week so far, the index has shed 3%.
Among the stocks in the spotlight:
The surge in oil prices is benefiting Eni, which is up 1.57%. Other sector names, including Tenaris and Saipem, are also gaining, making them the only risers within the FTSE Mib.
Leonardo erased its early gains and hovered around the flatline, still outperforming the market average. Expectations are building ahead of the late-June NATO summit, which is expected to confirm increased military spending by member states.
Banks are down an average of 1.5%, with Intesa Sanpaolo losing 1% and Pop Sondrio dropping 2.6%. Payment services provider Nexi is down 3.7%.
In the automotive sector, Stellantis is the worst performer, down 3%. General market pessimism is compounded by the threat of new tariffs on automakers, announced yesterday by U.S. President Donald Trump.
The luxury sector is also under pressure, with Ferragamo, Moncler, and Cucinelli all down around 3%.
(Reporting by Claudia Cristoferi, editing by Sabina Suzzi)
