Investors appear to be looking past the stalemate regarding a potential resolution to the conflict in Iran, focusing instead on the kickoff of the earnings season as they seek guidance on corporate profitability and the outlook for the coming months.
Equities are rising in contrast to the bond market, which remains under pressure due to mounting expectations of a rate hike by the European Central Bank, although no such move is anticipated at this Thursday's meeting.
Around 1:00 p.m., the FTSE Mib is up 1.2%, compared to a modest 0.1% gain for the European Stoxx index. Turnover stands at 1.1 billion euros.
Stock highlights:
** In the banking sector, UNICREDIT stands out with a 3% gain, followed by BPER and BANCO BPM, which are up 2.4% and 1.9% respectively. According to one trader, the market is front-running the sector's upcoming quarterly results on the belief that they may beat expectations. The Italian banking index is up 2%.
** At the top of the FTSE Mib, ENI also shines with a 3% rise, bolstered by sustained upward pressure on oil prices and better-than-expected first-quarter results from Britain's BP.
** Conversely, DIASORIN is shedding 2.8%, hit by a profit warning from Dutch biotech firm Qiagen, which has reignited concerns across the diagnostics sector.
** The defense sector is also weak, with LEONARDO down 0.8% and FINCANTIERI losing 1.6%.
** Selling pressure is hitting fashion and luxury stocks, with MONCLER yielding 1% while the smaller AEFFE has slumped as much as 15%, triggering a volatility auction.
(Andrea Mandalà, editing Claudia Cristoferi)
