Italian stocks hit 26-year record as energy, chips lead

Italy’s FTSE MIB rose as much as 1.2 per cent to 50,121.2 on Monday, taking Milan’s benchmark above its 2000 peak for the first time in 26 years. Bloomberg linked the move to continued strength in STMicroelectronics NV, Eni SpA and other heavyweights that have driven Italy’s outperformance this year.

Bloomberg said Italian stocks are up 11 per cent in 2026 after three straight annual advances. That has left Milan among the better-performing large markets in Europe this year. The new high looked more concentrated than broad: a chip rally, an energy trade and enough weight from a few large constituents to pull the whole index through the old ceiling.

That backdrop mattered because European shares climbed to more than two-month highs on Monday as optimism over Iran-US peace talks lifted risk appetite, Reuters reported. The regional tone helped, but it did not by itself explain why Italy, rather than another benchmark, broke a decades-old mark.

A 26-year record is a clear milestone. It is also a reminder that index levels can say as much about leadership as about breadth.

STMicroelectronics has done much of the work. Bloomberg said the stock was up 156 per cent this year, making it one of the FTSE MIB’s biggest contributors. Reuters reported in April that the chipmaker beat expectations on first-quarter results and guidance as demand tied to artificial-intelligence infrastructure supported orders. Reuters also said chief executive Jean-Marc Chery pointed to booking momentum, with book-to-bill above one across end markets and regions.

“We had a strong booking momentum during Q1, with book-to-bill well above one across all end markets and regions.”
— Jean-Marc Chery, STMicroelectronics chief executive, via Reuters

That company-level follow-through has mattered for the broader benchmark. If one of the index’s largest winners keeps producing better numbers and a steadier order picture, investors have less reason to take money off the table.

Energy shares gave Milan a second propellant. Bloomberg said Saipem was up 73 per cent this year and Eni had gained 41 per cent as oil and gas prices rose. The pairing of semiconductors and oil-linked names gave investors two different earnings stories, but both pointed in the same direction for the index.

Why the sector mix matters

A record driven by a few sectors can hold, but it remains tied to those sectors. In Milan’s case that means chip demand, energy prices and the earnings resilience of the companies that dominate the index. Reuters also cited chief financial officer Lorenzo Grandi as saying rising energy costs were not expected to materially affect STMicroelectronics for now, offering one reason investors stayed comfortable with a stock that has already risen sharply.

Italy has shared in the wider European lift, but Monday’s record was easiest to read through the names doing the heaviest lifting. If the chip and energy trades keep their momentum, the FTSE MIB has a plausible chance of holding above its old peak. If they fade, the milestone may come to look more like a narrow market achievement than the start of a broader rerating.