Piazza Affari remains slightly lower at mid-session following recent highs, as renewed geopolitical uncertainty dampens risk appetite and triggers a natural consolidation, further fueled by profit-taking.

U.S. strikes on Iranian targets and Tehran's response, reaffirming its right to react to any ceasefire violations, have scaled back expectations for a swift de-escalation in the Middle East, though without completely deterring markets.

The rise in Wall Street futures as trading resumes after yesterday's Memorial Day closure signals underlying market optimism regarding a diplomatic solution, helping to pare initial losses across European indices.

Around 1:35 p.m., the FTSE Mib is down 0.33% at 50,000 points, after hitting an all-time high of 50,220 points yesterday. Turnover stands at approximately 1.2 billion euros.

Stock Highlights:

** FERRARI is the session's primary laggard, sitting at the bottom of the FTSE Mib with a drop of over 6% following the unveiling of its first electric vehicle, 'Luce', which was met with a cold reception from the market. Traders and analysts are expressing doubts over the design and positioning of the model, deemed poorly aligned with the brand's identity, alongside risks related to demand and potentially limited short-term volumes.

** Luxury stocks, a sector particularly sensitive to geopolitical shifts, are under pressure, with CUCINELLI down 1.8% and MONCLER shedding 2.3%. Small-cap AEFFE is sliding 7%.

** A rebound in oil prices after yesterday's declines is supporting energy stocks, with SAIPEM gaining 1.5% and TENARIS up 0.5%. Conversely, ENI is down 0.3% after announcing yesterday that, alongside partners Vitol, Petroci, and Socar, it has approved the final investment decision for Phase 3 of the Baleine offshore project in Ivory Coast, the largest field ever discovered in the country. The news is positive but was widely anticipated.

** Utilities are attracting buyers, with ITALGAS, TERNA, HERA, and ENEL all posting gains of around half a percentage point.

** Defense stocks are mixed; LEONARDO has recovered from initial weakness to rise 1.4%, while FINCANTIERI remains sluggish, down 0.4%.

** Finally, INDUSTRIE DE NORA is surging 9%, rewarded for the announcement of its acquisition of BW Water. The deal strengthens the group's presence in the water treatment sector and increases its exposure to high-growth segments.

(Andrea Mandalà, editing Claudia Cristoferi)