Italy: FTSE MIB Drops Amid Middle East Tensions.

The Italian FTSE MIB fell 1.6% to close at 44,608 on Thursday, as a prolonged war in the Middle East could seriously impact Europe and Asia economically. Olli Rehn of the ECB Governing Council cautioned against over-optimism on a quick resolution to the Iran conflict, citing risks to both inflation and growth. ECB’s Pedro Machado noted limited direct impact on the banking sector but warned of broader economic spillovers. Financial stocks declined, with UniCredit down 2.7% and Intesa Sanpaolo losing 2%. Nexi plunged 16.6% to a record low after reporting a miss in Q4 earnings and reaffirming its target of mid-single-digit growth by 2028. Amplifon also slumped 13.2% following a Q4 profit decline and plans to exit the UK market by selling directly operated clinics. In contrast, Eni gained 1.3% as Middle East supply concerns drove oil prices higher.