The FTSE MIB dropped more than 1% to below 39,350 in early trading on Tuesday, reversing gains from the previous session, as markets were rattled by US President Donald Trump’s call for immediate evacuation of Tehran with the fifth-day of Israel-Iran fighting sowing fears of a broader regional conflict. The attacks continue despite reports that Iran is seeking to de-escalate hostilities with Israel and resume nuclear talks with the US.
Amid the geopolitical noise, investors are bracing for the US Federal Reserve’s policy meeting, where the bank is widely expected to hold rates steady on Wednesday. On the corporate front, losses were broad-based, with financial stocks among the laggards. Major Italian banks UniCredit and Intesa Sanpaolo shed 2.6% and 1.9%, respectively. Other notable decliners included Leonardo (-2.4%), Prysmian (-2.2%), and Buzzi Unicem (-1.8%).
