The conflict involving the United States, Israel, and Iran, marked by heavy missile and drone exchanges across the region, remains the primary focus for global markets as they brace for a prolonged confrontation.
Fears of inflation driven by surging energy prices are stifling risk appetite, while traders ramp up bets on further monetary policy tightening by central banks.
Around 12:10 p.m., the Ftse Mib index is flat, with volumes at approximately 1.1 billion euros. Other major European indices also recovered early losses to trade near parity.
Stock highlights:
** Banks, which are more sensitive to the economic cycle, are weighing on the index despite paring losses since the open. The sector index is down 1.2%, with declines of around one percent for BANCO BPM, INTESA SANPAOLO, and UNICREDIT.
** Selling pressure also hit PRYSMIAN, which shed 1.6%, TELECOM ITALIA (-1.5%), and CUCINELLI (-1.5%).
** On the upside, crude prices above 100 dollars a barrel are boosting oil stocks, with ENI rising 2.2% and SAIPEM gaining 2.6%.
** AVIO rebounded 4.5% following yesterday's slide, as the market views the 2026 guidance provided yesterday as overly conservative and bets on stronger demand in light of recent geopolitical developments.
** SAFILO lost momentum after announcing 2025 results yesterday evening featuring double-digit growth in profit and Ebitda. The stock, which started strong, is down 0.3%.
** Weakness continues for WEBUILD, which fell 4% following an 8.9% drop in the previous session.
** FERRETTI saw a relatively contained reaction (-0.7%) to the announcement that its Board of Directors recommended independent shareholders reject the partial and conditional voluntary tender offer promoted by Kkcg Maritime, deeming it unfair and the consideration financially inadequate.
(Sabina Suzzi, editing Andrea Mandalà)
