Milan's FTSE Mib closes above 54,000 points as Hormuz accord lifts European markets

European markets extend gains

European equities rose for a fourth consecutive session on 6 August, with Milan's FTSE Mib closing above 54,000 points for the first time. The index gained 0.4% to set a new record, having traded as high as +0.97% during the midday session. Frankfurt's DAX closed up 0.05% at 26,140 points, Paris's CAC40 gained 0.35%, and the pan-European Stoxx 600 rose 0.16%. London's FTSE was the outlier, closing down 0.19%. The BTP-Bund spread held flat at around 77 basis points, with the Italian 10-year yield at 3.9%.

Hormuz accord and oil prices

Brent crude traded around $80 per barrel after Iran announced it had reached an agreement with Oman on a proposed maritime route through the Strait of Hormuz, raising prospects of resumed energy flows through the strategic waterway. Earlier in the day, Brent had slipped below $80 and US WTI hovered just above $75. The ECB's economic bulletin, published during the session, noted that after the signing of a protocol of understanding between the United States and Iran, under which both parties committed to restoring free transit through the Strait, Brent had initially dropped sharply. However, the bulletin added that following new military attacks and after President Trump declared the end of the ceasefire, prices had risen again, sitting about 1% below the level recorded on 11 June.

Banking sector drives Milan

Italian banks led the Milan rally. Banco BPM gained 5.11% by midday after reporting first-half results and raising its 2026 guidance, alongside a decision to distribute an additional €1 billion to shareholders by the end of its plan in 2027. Generali gained 1.8%, MPS rose 1.33%, and Unicredit added 0.64%. Bper reversed an early gain of 1% to trade down 0.55% by midday. Among the worst performers, Tenaris fell 2.59% and ST declined 1.04%. In the media sector, WPP surged 26.5%, its largest single-day rise since its market debut in 1995.

Asian markets slide on tech concerns

Asian markets moved in the opposite direction, dragged lower by a fresh wave of concern over elevated investment flows in artificial intelligence. South Korea's main index fell 4%, with Samsung and SK Hynix alone accounting for over 40% of the index. Japan also closed in the red. The previous day's tech-driven decline had also pulled the Nasdaq lower. S&P 500 futures rose 0.2%, while Nasdaq 100 futures fell 0.3%.

Investment outlook

Filippo Di Naro, chief investment officer at Anima Sgr, described the current environment as one of "shifting winds."

After months of positive performance on the main equity markets, the investment landscape today appears more challenging. Sector leadership changes rapidly - from semiconductors to themes linked to artificial intelligence and data centers, where attention is progressively shifting from the growth of investments to the sustainability of cash flows - while geopolitical equilibria confirm themselves fragile and unstable. To this uncertainty is added that on monetary policies, influenced by a scenario in continuous evolution.

Robeco analysts noted growing investor interest in European equities, citing lower concentration risk. They pointed out that Europe's ten largest index components represent 20.6% of the index, compared with 38.4% in the United States. Many large European companies generate a significant share of revenue outside Europe, offering investors exposure to diversified business models. Market participants are also awaiting the key US employment report due on Friday.