The market is oscillating between hopes for an imminent end to the conflict in Iran and fears that a resolution is far off, while oil prices continue to push past 100 dollars per barrel.
Furthermore, the arrival of quarterly earnings reports is beginning to influence share prices.
Around 9:40 CET, the FTSE Mib was down 0.80%.
ENI is seeing buying interest, rising 0.7% after reporting quarterly earnings that fell below consensus; however, the announcement of a 90% increase in its buyback program is supporting the stock. SAIPEM is also performing well, still buoyed by results released two days ago.
Banking stocks are under pressure, with the sector index retreating 1%, as heavyweights UNICREDIT and INTESA both decline by around 1%. MPS is underperforming at -1.2%, alongside its subsidiary MEDIOBANCA at -1.1%, while BANCO BPM is up 0.54%. This morning, a Financial Times report suggested that MPS CEO Luigi Lovaglio is considering selling the bank's stake in Generali to reinvest the proceeds into an acquisition of Banco BPM. An MPS spokesperson later clarified that no plans regarding the sale of the Generali stake are currently under consideration.
STM remains in favor, rising over 1.5% following yesterday's sharp 14% rally triggered by first-quarter results and second-quarter guidance that exceeded market expectations. The Franco-Italian semiconductor stock is trading at its highest levels since March 2024, surpassing the 44-euro mark.
Defense stocks are sharply lower, with LEONARDO retreating approximately 3% and FINCANTIERI down 2.5%.
The luxury sector remains weak today, penalized by high volatility linked to the deteriorating geopolitical landscape. MONCLER is down 1.9%, CUCINELLI 1.45%, and FERRAGAMO 0.8%. AEFFE is in deep red (-4.9%) after the Board approved the balance sheet as of March 31, revealing that the company's net equity has turned negative to the tune of 1.91 million euros, falling below the minimum threshold established by Article 2327 of the Civil Code.
(Giancarlo Navach, editing Stefano Bernabei)
