Piazza Affari continues its Ferragosto week with strong momentum, updating its highest levels since 2007 amid a positive global market environment. Investor sentiment was buoyed after U.S. inflation data came in below expectations, reinforcing hopes for a Federal Reserve rate cut.
Controlled inflation--which so far appears largely unaffected by tariffs imposed by U.S. President Donald Trump--has reassured investors. Futures markets now price in a 98% probability of a 25 basis point rate cut at the Fed's September meeting.
Around 11:00 am, the Ftse Mib index was up 0.47%, breaking above the 42,000 mark, its highest since July 2027.
Stocks in focus:
** Leading the Ftse Mib was LEONARDO, up 2.8%, as the European defense sector rallied and emerged as a key driver for European stock indices today. The sector received a fresh boost from better-than-expected Q2 revenue figures from Germany's Renk, which produces propulsion systems for Leopard 2 tanks sent to Ukraine.
** FINCANTIERI also performed strongly, rising 5.3%.
** Financials were in demand as well, with banks--POP SONDRIO, BPER, and MPS--gaining between 1% and 1.7%. Insurers UNIPOL and GENERALI advanced by 1.8% and 0.8%, respectively.
** At the bottom of the main board, AMPLIFON slipped 0.6%, weighed down by a downward revision of guidance from Danish rival Demant.
** Oil stocks also edged lower, with ENI down 0.5% and SAIPEM off 0.4%, as a weak crude market was pressured by an International Energy Agency forecast that global supply will outpace demand this year. Investors also remained cautious ahead of Friday's summit in Alaska between U.S. President Donald Trump and Russian President Vladimir Putin on ending the war in Ukraine.
** STELLANTIS also declined, falling 1.5%.
** Outside the main board, SAFILO shone, gaining 5%--though off session highs--after Berenberg initiated coverage with a 'buy' rating and a target price of €1.62.
(Reporting by Andrea Mandalà, editing by Sabina Suzzi)
