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 beyond 100 dollars per barrel.
One trader noted that in the absence of fresh developments on the war front, investors are opting to close out positions.
Furthermore, the arrival of quarterly earnings reports is beginning to influence market trends.
Around 1:10 p.m., the FTSE Mib is down 0.6%. Trading volumes stand at 1.3 billion euros.
Today's highlights:
** ENI is up 0.5% following a quarter that saw earnings decline and miss consensus. However, the announcement of a 90% increase in its buyback program is supporting the shares. SAIPEM is also performing well (+1%), still buoyed by its results released two days ago.
** Banking stocks are under pressure, with the sector index retreating 1.7%. Heavyweights UNICREDIT and INTESA are both down around 1.7%. MPS is underperforming at -1.2%, alongside its subsidiary MEDIOBANCA at -1.6%, while BANCO BPM sheds 0.7%. This morning, an FT report suggested that MPS CEO Luigi Lovaglio is considering selling the bank's stake in Generali to reinvest the proceeds in an acquisition of Banco BPM. An MPS spokesperson later clarified that no such plan regarding the sale of the Generali stake is under consideration.
** STM remains in favor, rising over 1.5% following yesterday's sharp 14% gain. This follows 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 2% and FINCANTIERI down 2.8%.
The luxury sector remains weak today, penalized by high volatility linked to the deteriorating geopolitical landscape. MONCLER is down 2.4%, CUCINELLI 2.3%, and FERRAGAMO 1.9%. AEFFE is also in deep red (-1.9%) after the Board approved the balance sheet as of March 31, revealing that the company's equity has fallen to a negative 1.91 million euros, dropping below the minimum threshold established by Article 2327 of the Civil Code.
** The automotive sector is down in line with the negative trend in cyclical stocks, with STELLANTIS sliding 2.5%.
(Giancarlo Navach, editing Andrea Mandalà)
