Piazza Affari and major European equity markets opened with significant momentum, driven by hopes of a de-escalation between Iran and the U.S. following comments from Donald Trump. The President suggested a deal could be reached by the weekend, though Tehran clarified that a final decision has not yet been made.

The banking sector continues to act as the primary engine for Milan, fueled by ongoing consolidation rumors and the ECB's recent move to raise the deposit rate to 2.25%, marking the first restrictive intervention in nearly three years. Furthermore, the door remains open, though not guaranteed, for another upward adjustment to ECB benchmark rates following yesterday's anticipated monetary tightening.

Expectations of easing tensions in the Middle East have pushed Brent crude prices lower, with futures now trading below $90 per barrel.

As of 9:45, the FTSE MIB is up 1.48%.

The banking index is climbing 2.4%, with heavyweights INTESA and UNICREDIT moving in lockstep with the broader index. Among the top performers, MPS is advancing 3.2%, followed by its subsidiary MEDIOBANCA, up 3.6%, following Monday's announcement of Intesa's public exchange offer to acquire the Sienese bank. One trader noted that banks remain highly sensitive to ECB rate trends due to the direct impact on net interest margins.

STELLANTIS is seeing a sharp rise, jumping 4.8% in line with the broader European automotive sector as investors rotate back into cyclical stocks sensitive to economic performance.

The decline in raw material costs is weighing on the oil sector: ENI is down 2.1%, while oil service firms such as SAIPEM and TENARIS are seeing losses ranging between 0.6% and 1.6%.

Outside the main index, JUVENTUS shares remain in high demand, rising 3.9%. Conversely, LAZIO is down 0.3% in volatile trading following the Roman club's denial of rumors regarding a potential sale of the company owned by Claudio Lotito.

Finally, ITALIAN SEA GROUP TISGR.MI is shedding 4.6% after yesterday's rally of over 14%. The pullback follows the denial of rumors regarding a potential interest from FERRETTI, which is up 1.9%. According to Equita, 'Ferretti's interest in the Italian Sea Group shipyards would be motivated less by production capacity needs and more by a desire to develop the refitting sector, which is currently marginal for the group.'

(Giancarlo Navach, editing Stefano Bernabei)