Markets are also beginning to price in the potential end of another conflict that has lasted over four years: the war between Russia and Ukraine. This follows the announcement of an Orthodox Easter truce and expectations of a possible resumption of negotiations after Bloomberg reported that Ukraine's lead negotiator, Kyrylo Budanov, sees progress toward a peace deal with Russia.
Oil prices remain below the 100-dollar threshold for the second consecutive day, while trading remains particularly volatile.
On the macro front, investors are awaiting the U.S. CPI data due early this afternoon, which will be closely monitored by the Fed to guide interest rate policy.
Around 1:00 p.m., the FTSE Mib index was up 0.75%, with volumes reaching approximately 1.65 billion euros.
Today's stock highlights:
** Expectations for an end to hostilities in the two ongoing wars are dampening speculation in the defense sector, which is trading sharply lower across Europe. In Milan, LEONARDO is the worst performer, sliding 6.5%; the stock was already under pressure following the unexpected leadership change that will see Lorenzo Mariani take the helm of the group, replacing Roberto Cingolani.
Heavy selling is also hitting AVIO, down about 5%, and FINCANTIERI, which has shed 2.6%.
** Conversely, hopes for a cessation of hostilities are boosting cement stocks in anticipation of post-war reconstruction investment, particularly in Ukraine. BUZZI jumped 6.5%, while WEBUILD rose 4.6%.
** BRUNELLO CUCINELLI is also in high demand, surging over 6% after first-quarter results beat expectations. Specifically, the market was positively surprised by retail sales, which grew 20.1% in the January-March period, while the wholesale channel recorded a 4.3% increase at constant exchange rates, compared to consensus estimates of 15% and 3% respectively. In the luxury segment, MONCLER followed suit, gaining 3.1%.
** STM is also attracting buyers, rising around 2.3% to reach new highs since late July 2024.
** Banks are climbing again, with the sectoral index up 0.9%. Heavyweights UNICREDIT and INTESA are trading between 1.8% and 1.4% higher.
** ENI is down once more, falling 1.7% amid volatile crude price movements. Among oil services, TENARIS lost 1.7% and SAIPEM dropped 1.1%.
(Giancarlo Navach, editing by Claudia Cristoferi)
