The FTSE MIB closed 0.7% lower at 44,456 on Thursday, tracking the sharp losses in European stocks as energy prices increased further and tightened financial conditions for European economies, especially those with higher debt. The heavyweight financial sector recorded sharp losses as higher bond yields pressured their balance sheets and increased the reduced the outlook on net interest margins. UniCredit fell 3.7% while MPS and Mediobanca dropped close to 4% after yesterday's outperformance. The banks had approved a selection of merger plans, with MPS announcing EUR 1.6 billion in new shares to offer Mediobanca shareholders with 2.45 MPS shares for each Mediobanca share. In turn, the increased geopolitical tensions continued to support Leonardo stock, which rose by nearly 6% to a fresh record of EUR 63.88.