Markets are also buoyed by the positive performance of U.S. futures, reflecting improved sentiment in the technology sector, as investors await the minutes from the Federal Reserve's January meeting, which could offer fresh insights on the outlook for interest rate cuts. According to the CME's FedWatch Tool, markets currently expect a rate cut in June.
On the macroeconomic front, a series of data releases are expected this afternoon, including new housing starts and durable goods orders in the United States for December, as well as industrial production for January.
Around 12:40 p.m., the FTSE MIB was up 1.25%.
Volumes reached approximately 1.3 billion.
Key stocks in focus today
** Spotlight remains on the banks, with MEDIOBANCA rallying 7.5%, while parent company MPS rises 1.7% after the board of the Siena-based bank yesterday approved full integration with Piazzetta Cuccia via a merger by incorporation, which will lead to the delisting of the Milanese bank after 70 years. A trader notes that expectations regarding the share exchange ratio—and thus the price of the mandatory public offer for Mediobanca's remaining free float—are driving the stock's movement.
UNICREDIT also performs well, up 1.8%, with INTESA gaining 1.3%.
** LEONARDO climbs by approximately 4.5%, followed by FINCANTIERI up 2.2%, as the European defense sector enjoys a positive session thanks to stronger-than-expected results from Britain's BAE Systems, which is up over 4%.
** ERG continues to attract buying interest, rising 7.5% amid speculation about a potential reshuffling of the shareholder structure of the renewable energy producer. In its daily note, Equita writes that "M&A activity is one possibility to accelerate the group's development, with the potential to integrate Erg's renewable production with a retail customer portfolio."
** Other utilities are also being bought today as investors await further details on the energy decree currently being drafted by the government, which would mainly penalize companies producing energy from renewable and hydroelectric sources. ENEL and A2A are up between 1.8% and 1.5% in the sector.
** EDISON savings shares are sharply down, falling about 4% after 2025 results showed a significant drop in net profit to 240 million euros. Additionally, management announced that parent company EDF might reconsider opening up Edison's capital depending on forthcoming regulatory changes under the government's energy decree currently under review.
** RECORDATI is up about 1.7% post-2025 results, which were slightly better than expected, with 2026 guidance in line.
** The luxury sector is largely overlooked, with FERRAGAMO down 1%, CUCINELLI flat as it awaits preliminary 2025 results after market close, and FERRARI losing 2%. CAMPARI is also down, falling 1.75%.
(Giancarlo Navach, editing by Claudia Cristoferi)
