The Milan Stock Exchange and other major European markets opened sharply lower following Israel's overnight strike on Iran, which has sparked widespread risk aversion among investors.
Around 9:20 AM, the FTSEMib index was down 1.4%.
Cyclical stocks, particularly banks, were among the hardest hit, with the Milan banking index dropping 2%. Automotive shares also declined by an average of 2.2%, led by Stellantis, which fell 3% after new tariff threats from U.S. President Donald Trump yesterday. The luxury sector also suffered, with Ferragamo sliding 2.8%.
Among the few gainers were Eni (+1.8%) and Saipem (+0.6%), both benefiting from a sharp rise in oil prices triggered by the escalating tensions in the Middle East.
The defense sector also saw gains, with arms manufacturer Leonardo up 2%, as expectations grow ahead of the late-June NATO summit, where an increase in military spending by member countries is anticipated.
(Reporting by Claudia Cristoferi, editing by Andrea Mandalà)
