Milan’s leading stock index continued to climb higher in late trading. The FTSE MIB was up 0.9% to 43,023 points, a level not seen since May 2007. The closely watched spread between Italian ten-year government bonds (BTPs) and their German equivalents (Bunds) also widened to 79.7 basis points. This movement was driven by the Italian annual yield falling 0.4 points to 3.55%, while the German yield fell more sharply, down 0.8 points to 2.75%.
Hopes for a potential peace solution between Russia and Ukraine provided a significant boost to the market. The luxury goods sector was a major beneficiary, with Moncler surging 4.5%. The spirits segment also rose, led by Campari, which gained 3.32%. Other strong performers included Amplifon (+3.07%) and automaker Stellantis (+2.87%). Banking stocks were also up ahead of an August 21st assembly concerning a takeover bid (Ops) for Banca Generali; Intesa Sanpaolo gained 2.33%, Monte dei Paschi di Siena (MPS) rose 1.95%, and Mediobanca advanced 1.7%. In contrast, the same geopolitical optimism weighed on defense stocks, putting pressure on Leonardo, which plummeted 9.7%, and Fincantieri, which fell 0.6%.
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