Milan stocks surged Wednesday, fueled by gains in banking, industrial, and utility sectors, while easing geopolitical tensions and falling energy prices provided additional support. The FTSE Mib index closed up 2.7% at 45,507 points, marking a significant rebound as investors reacted to developments surrounding potential de-escalation in the Middle East. This positive momentum in the Italian market mirrors a broader trend across Europe, driven by hopes for a swift resolution to international conflicts and a stabilizing energy landscape. Understanding these market dynamics – the interplay between geopolitical events, energy prices, and investor sentiment – is crucial for navigating the current economic climate.
The rally was particularly pronounced for Buzzi (+6%), Leonardo (+2.8%), Prysmian, and Unicredit (+5%). Conversely, the energy sector experienced a downturn, with Eni (-2%), Tenaris, and Saipem (-0.8%) leading the declines. This divergence reflects the impact of falling oil and gas prices, as investors anticipate a potential easing of supply constraints. The spread between Italian and German 10-year government bonds narrowed considerably, falling 5% to 86 basis points, indicating increased confidence in Italy’s debt sustainability. Crude oil prices also retreated, with West Texas Intermediate (WTI) trading between $100 and $102 per barrel, and Brent crude around $98 to $101. Natural gas prices in Europe saw a more substantial drop, falling to €47.8 per megawatt-hour.
Italian Unemployment Shows Slight Increase, Youth Unemployment Continues to Fall
Despite the positive market sentiment, Italy’s unemployment rate edged up slightly to 5.3% in February 2026, from 5.2% in January, according to the latest data released Wednesday. The Italian National Institute of Statistics (ISTAT) reported that the number of unemployed individuals increased by 36,000 to 1.36 million during the month. However, the employment rate decreased to 62.4% from 62.6%, with a reduction of 29,000 employed individuals, bringing the total to 24.15 million. The decline in employment affected both permanent and temporary contracts, though the number of self-employed individuals increased. Italy’s overall employment rate remains among the lowest in the Eurozone.
A notable positive trend emerged in youth unemployment, which fell to a historic low of 17.6% for those aged 15-24, down from 18.5% in January. The youth inactivity rate remained stable at 33.9%. This improvement suggests that recent labor market reforms and targeted employment programs may be having a positive impact on younger workers. However, the overall unemployment figures highlight the ongoing challenges facing the Italian labor market, particularly in maintaining employment levels amidst economic uncertainty.
Early Gains Driven by Geopolitical Optimism and Trump’s Statements
Trading opened strongly on Piazza Affari, with the FTSE Mib jumping 1.8% before accelerating to a 2.6% gain, reaching 45,458 points. Buzzi led the charge with a 6% increase, followed by Unicredit, Poste (+5%), and Banca Mediolanum (+4%). The initial surge was spurred by positive sentiment following comments from U.S. President Donald Trump regarding the potential for a swift resolution to the conflict in Iran. Trump indicated that the United States could conclude the war within “two or three weeks,” even without a formal peace agreement, signaling a willingness to de-escalate tensions. MilanFinanza reported that Asian markets also responded positively to Trump’s remarks, with the Nikkei experiencing significant gains.
The prospect of a reduced conflict in the Middle East led to a sharp decline in energy prices. WTI crude oil fell below $100 per barrel to $96.7, while Brent crude settled at $98.6. European gas prices experienced an even more substantial drop, falling 8% to €50.7 per megawatt-hour. This decline in energy prices is expected to ease inflationary pressures and provide a boost to economic growth. U.S. Secretary of State Marco Rubio has reportedly left the door open for dialogue with Iran, while Iranian President Masoud Pezeshkian has expressed willingness to end the conflict, contingent on guarantees against further military action from the U.S. And Israel. However, U.S. Secretary of Defense Pete Hegseth has cautioned against ruling out a ground intervention, emphasizing the need for strategic unpredictability. The White House has announced that President Trump will address the nation Wednesday evening to provide an update on the situation in Iran.
Stocks to Watch: Leapmotor, Eni, Campari, and MPS
Several companies are drawing investor attention. Leapmotor has finalized an agreement with Stellantis to transfer carbon emission credits generated in Europe and the UK throughout 2026. MilanFinanza details that these credits stem from the sale and registration of all battery-electric and range-extended electric vehicles under the Leapmotor brand from March 31st to December 31st. Alphavalue has upgraded its recommendation for Eni to “Reduce” from “Sell.” Campari has established a Euro Medium Term Note program for up to €2 billion, exclusively for institutional investors, with a 12-month validity. Finally, regarding Monte dei Paschi di Siena (MPS), a representative from the Tortora list (associated with Lovaglio) has criticized a contradictory opinion from Institutional Shareholder Services (ISS) regarding candidate voting, emphasizing the need for stability within the bank.
The Italian stock market’s performance remains sensitive to global geopolitical developments and energy price fluctuations. Investors will be closely watching President Trump’s address Wednesday evening for further insights into the potential trajectory of the conflict in Iran and its implications for the global economy. The next key economic indicator will be the release of further employment data next month, providing a more comprehensive assessment of the Italian labor market’s health.
Disclaimer: This article provides informational purposes only and should not be considered financial advice. Investing in the stock market involves risks, and past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.
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