The FTSE MIB index rose 1.1% to close at 44,310 on Tuesday, extending the previous session’s rebound and mirroring the positive tone across European equities amid the absence of upside surprises in key inflation data. Eurozone inflation came in below expectations for both the headline and core readings, while domestic consumer price growth also remained relatively subdued. This helped bolster confidence that the current energy shock will have a more limited impact than in 2022.
These dynamics eased fears that higher energy bills would squeeze household spending and compel the government to step in with additional support for businesses, a scenario that had weighed on heavily indebted Italian sovereign bonds. As bond sentiment improved, bank stocks advanced, with UniCredit, Intesa Sanpaolo, BPER, and Banco BPM all gaining more than 1.5%.
Meanwhile, Leonardo and Prysmian surged more than 4%, as investors moved back into the stocks to capitalize on more attractive valuations after this month’s selloff.
