European stock markets declined Thursday morning as oil prices surged past $100 a barrel, fueled by ongoing geopolitical tensions. Piazza Affari opened volatile, with Leonardo S.p.A. Bucking the trend with a significant rise following the release of its industrial plan.
The price of Brent crude oil exceeded $100 per barrel, reversing earlier gains after a release of strategic reserves failed to quell market anxieties. The conflict in Iraq, specifically a missile strike targeting a base housing Italian forces in Erbil, contributed to the renewed upward pressure on oil prices, according to reports.
Leonardo shares jumped as much as 9% in early trading after the company unveiled its new industrial plan. Generali also saw gains, rising 1.6% following the publication of its financial results. According to market data at 10:40 AM GMT+1, the FTSE Mib index was down 0.25%.
Other Italian stocks experienced declines. Mps, Campari, Mediobanca, and Saipem all saw drops in value, with Saipem falling 1.7%. Erg and Webuild also registered significant losses, down 6.6% and 7.8% respectively. Wiit’s stock price decreased by 4% after its results were released.
Earlier in the day, at 9:05 AM GMT+1, Piazza Affari opened with volatility, again driven by rising oil prices. Leonardo and Generali were leading the gains, with Leonardo up 5% and Generali up 2%. Fincantieri also saw an increase, rising 1.7%. Campari, Mps, Nexi, and Stellantis were all down in early trading.
The Euro weakened to $1.155, while the yield on the German Bund reached levels not seen since 2023, climbing to 2.93% amid concerns about potential interest rate hikes. The European Union has warned that inflation in the Eurozone could exceed 3% this year.
Assicurazioni Generali SpA reported record 2025 profits and announced a 500-million-euro share buyback, according to recent financial reports. The company’s stock was trading at €33.48 as of 10:52:56 AM GMT+1 on the Borsa Italiana.
