Indices in Milan posted cautious gains, mirroring the performance of other European markets. Weaker-than-expected quarterly results and forecasts from Oracle weighed on stock exchanges.

The projections announced by the US tech giant have fueled concerns over the profitability of the artificial intelligence sector, tempering the upbeat sentiment previously sparked by the Federal Reserve. The Fed had accompanied its much-anticipated rate cut with less 'hawkish' comments than expected.

US index futures were negative, suggesting a lower opening on Wall Street.

Around 13:10, the Ftse Mib index was down 0.25%. Trading volumes were just above EUR1.2 billion.

Stocks in focus today

** BRUNELLO CUCINELLI soared (+3.4%) after the close of trading yesterday, forecasting a revenue increase at constant exchange rates between 11% and 12% for 2025, outpacing expectations from earlier this year. Equita upgraded its rating to 'buy' following a recent weak performance, calling the move "supported by continued strong momentum, favorable prospects, and a valuation at a discount to historical averages."

** DIASORIN was well received, advancing 2.4% despite BofA lowering its target price to EUR80 from the previous EUR115. RECORDATI rose 1.2%.

** Bank stocks attracted buyers, with the sector index up 1.2% driven by UNICREDIT (+1.9%) and INTESA SANPAOLO (+1.2%). A trader noted that the likelihood of a European rate hike next year is boosting the sector, as banks would benefit from increased interest margins.

** The fortunes of STELLANTIS and FERRARI diverged following recommendations from Exane Bnp Paribas. Stellantis slipped 3% after being downgraded to 'underperform' from 'neutral', whereas Ferrari gained 1.6% following an upgrade to 'outperform' from 'neutral'.

** CAMPARI edged up 0.3%, after Barclays raised its target price to EUR8.6 from EUR7.9.

** On the downside, STM dropped 1.5% as the European tech sector felt the impact of Oracle's results.

** The utilities sector fell, with SNAM and TERNA down more than 1.2%. PRYSMIAN also struggled, losing 3%.

(Giancarlo Navach, editing by Sabina Suzzi)