The FTSE MIB dropped 1.2% to close at 40,167 on Monday, marking the steepest decline among major European indices, as a mix of technical and macro headwinds weighed on Italian equities.
A technical adjustment at the open saw the index shed around 1.76%, driven by dividend detachment from 23 blue-chip stocks, prompting mechanical selling and distorting headline losses.
Broader pressure followed Moody’s May 16 downgrade of US sovereign debt to Aa1, which pushed Treasury yields higher and dampened global risk appetite.
In Europe, the European Commission’s Spring forecast cut 2025 eurozone growth to 0.9% from 1.3%, citing tariff-related uncertainty, while April’s CPI confirmed persistent inflation, headline at 2.2% and core at 2.7%, reinforcing expectations of prolonged ECB restraint.
Financials led losses, with Intesa Sanpaolo, Generali, Mediobanca, Banco BPM, and BPER Banca falling between 2.2% and 3.9%.
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