Geopolitical tensions have influenced global markets, sending crude oil prices soaring and fueling inflation fears.
The climate of uncertainty has shifted local attention to individual stocks, driven by quarterly earnings and industrial plans, prompting traders to adjust some positions as the week comes to a close.
At 12:30, the Ftse Mib index was down 0.5%. Trading volumes stood at about 1.6 billion euros.
Since last Friday's close, on the eve of the outbreak of war in Iran, the index has lost just under 6%.
Stocks in focus:
** After heavy losses yesterday, triggered by disappointment over market figures, NEXI and AMPLIFON are attempting a rebound, gaining 1.1% and 3% respectively.
** In contrast, CAMPARI, which surged around 10% yesterday on the back of earnings, is retracing by 2.4% today.
** The ongoing wartime climate continues to benefit defense stocks, with LEONARDO jumping 3%.
** AVIO shines with an 8.9% increase, after announcing a USD 65 million contract this morning for a new solid-propellant engine development project in the United States. "We believe this contract is already factored into the business plan targets," Equita commented in its daily note, "but it demonstrates strong demand in this segment, made even more evident by the recent geopolitical developments."
** Bank stocks remain under pressure, as they have absorbed most of the selling across Europe this week. The Italian sector index is down 0.8%, with BPER, POPOLARE DI SONDRIO, and MPS all dropping around 2%. UNICREDIT is hovering near flat (-0.1%).
** Energy stocks are moving in mixed fashion, with ENI and ERG both up about one percentage point, while ITALGAS slips 2.8% and ENEL falls 1.3%.
** STM, which managed to stay positive yesterday, is now at the bottom of the main basket with a 3.2% decline.
** PIAGGIO, which opened sharply lower after releasing results last night showing declines in revenue and profit due to weak demand, has pared losses to around 1%. "Q4 results were weak as expected, with all geographic areas down," Equita noted.
(Sabina Suzzi, editing by Stefano Bernabei)
