FX.co ★ Italian Stocks Slump as Israel-Iran Attacks Continue

The FTSE MIB fell by more than 1%, sinking below 39,350 in early trading on Tuesday. This downturn erased the gains seen in the previous session, as markets reacted to US President Donald Trump's call for the prompt evacuation of Tehran amidst the fifth day of Israel-Iran conflicts, raising concerns about a wider regional crisis. Despite reports suggesting that Iran is attempting to reduce hostilities with Israel and resume nuclear negotiations with the US, tensions remain high. In the midst of these geopolitical developments, investors are preparing for the US Federal Reserve's policy meeting. It is broadly anticipated that the central bank will maintain current interest rates during Wednesday's meeting. On the corporate front, losses were widespread, with financial stocks among the sectors experiencing significant declines. Major Italian banks, including UniCredit and Intesa Sanpaolo, saw their shares drop by 2.6% and 1.9%, respectively. Other significant decliners included Leonardo, which fell by 2.4%, Prysmian at 2.2%, and Buzzi Unicem, declining by 1.8%.