The Italian FTSE MIB dropped nearly 3% to around 42,800 on Monday, extending last week’s losses to its lowest level since late November and moving in line with other European markets. The decline came as energy prices surged again, with crude oil rising above $100 per barrel and reviving fears of stronger inflation. In response, markets have increased expectations for tighter ECB policy, now pricing in two 25-basis-point rate hikes this year, up from just one expected last week. Most stocks traded sharply lower, including Unicredit (-4.4%), Intesa Sanpaolo (-4%), Ferrari (-2.9%), Assicurazioni Generali (-2%), Poste Italiane (-2.3%), and Prysmian (-5.2%). On the upside, defence group Leonardo rose more than 1%, while payment solutions firm Nexi climbed over 3%.