Investors remain concerned by ongoing geopolitical tensions, with growing fears that the Strait of Hormuz could remain blocked beyond June, draining global reserves and plunging the world into a full-blown energy crisis.
Brent crude continues to trade around 107 dollars per barrel.
On the macro front, yields are rising on fears of increasing inflation, leading to speculation over potential interest rate hikes.
Furthermore, a trader noted that the market is being influenced today by May's technical expirations, contributing to heightened volatility.
Around 9:50 CET, the FTSE Mib index is down 1.15% at 49,471 points. Yesterday, the blue-chip index closed at 50,050 points, just a whisker away from the 50,108-point record high reached on March 6, 2000, at the height of the dot-com bubble.
Banks are trading lower, with the sector index down approximately 1.2%, weighed down in particular by Intesa Sanpaolo, which is losing 1.6%, and UniCredit, down 1%.
Profit-taking is also hitting STM, which has shed 4.1% following a recent rally and a series of record highs driven by the surge in the AI sector.
In the luxury segment, Ferragamo has collapsed and is currently in a volatility auction, down nearly 13%. The move follows first-quarter results released yesterday after the market close, which showed declining revenues, albeit in line with expectations. The stock had surged yesterday ahead of the data and is now falling victim to profit-taking. In its daily note, Equita pointed out that the stock was 'near all-time highs and among the sector's best performers year-to-date.' 'The first quarter saw a solid performance, in line with the sector average but without quarter-on-quarter growth (unlike its peers), with greater difficulties in China and a slowdown in the leather goods segment,' the broker noted, confirming its 'hold' rating in light of high valuations.
Leonardo has resumed its climb, up 2.1%, while Ferretti is losing 3.5% following the postponement of its board meeting for quarterly results.
Finally, Technoprobe is soaring with a 34% jump to new all-time highs of 26.9 euros following its results.
(Giancarlo Navach, editing Stefano Bernabei)
