Italy: Stocks Drop Further.

The FTSE MIB trimmed an aggressive decline at the open but still closed 0.3% lower at 44,025 on Monday, tracking the decline for other European equity benchmarks as escalation in the Iran war drove energy prices to continue to surge and raise pro-inflationary risks. Banks extended their aggressive drops as BTP yields rose further and hurt their lending outlook, with UniCredit dropping 1.6% while Mediobanca and Mediolanum fell more than 2%. Luxury brands were also hurt by more expensive credit, with Ferrari and Brunello Cucinelli dropping 2.5% and 3.8%. In turn, Leonardo surged 6.8% due to 7% as the war in Iran supported orders for the defense sector.