Sign Up Log in

    Italy’s business confidence index fell to 88.5 in February, down from 89.2

    by VT Markets
    /
    Feb 26, 2026
    Italy’s business confidence index fell to 88.5 in February, down from 89.2 in the previous reading. That is a drop of 0.7 points between the two periods.

    Implications For Derivatives Traders

    The fall in Italian business confidence to 88.5 points to a possible slowdown ahead. For derivatives traders, this suggests higher risk in Italian assets may need to be priced in. It can also act as an early signal that corporate earnings and investment could weaken over the next few quarters. This data also questions the recent strength in Italian equities. The FTSE MIB gained more than 20% in 2025 and tested the 33,000 level, but the weaker sentiment makes defensive positioning more appealing. Buying put options on the FTSE MIB, or on major Italian banking stocks, may help hedge against a pullback. It is also important to monitor the Italian government bond market. A weaker economy can raise concerns about debt, which may push the spread between 10-year Italian BTPs and German Bunds higher. This spread is a key risk gauge and is currently near 155 basis points. Traders may look for signs of a widening spread, similar to the volatility seen during past sovereign debt stress.

    Euro And ECB Policy Signals

    The effects may also reach the Euro. Weakness in the Eurozone’s third-largest economy can shape expectations for monetary policy. With Eurozone inflation recently near 2.5%, this softer Italian reading gives the European Central Bank more room to consider future rate cuts. That could put pressure on EUR/USD in the coming weeks. Create your live VT Markets account and start trading now.

    here to set up a live account on VT Markets now

    In This Article

    see more

    Back To Top
    server
    Click Click Click Click Click
    Follow us on

    Hello there 👋

    How can I help you?

    Chat with our team instantly

    Live Chat

    Start a live conversation through...

    • Telegram
      hold On hold
    • Coming Soon...

    Hello there 👋

    How can I help you?

    telegram

    Scan the QR code with your smartphone to start a chat with us, or click here.

    Don’t have the Telegram App or Desktop installed? Use Web Telegram instead.

    QR code