FX.co ★ Italian Stocks Retreat

The FTSE MIB closed 1% lower at 44,773 on Tuesday, mirroring a sharp selloff in BTPs as a renewed surge in energy costs undermined margin prospects and increased expectations of further interest rate hikes by the European Central Bank. The heavyweight financial sector posted steep losses, with higher bond yields weighing on balance sheets and darkening the outlook for net interest income. UniCredit slipped 1.8%, while Unipol and Azimut each fell more than 2%. Luxury names were also under pressure, with Ferrari, Moncler, and Brunello Cucinelli all losing over 2%. Leonardo declined 3% after downbeat guidance from Rheinmetall.