Markets are seeing some profit-taking on the stocks that gained the most yesterday, alongside a sector rotation that is currently favoring utilities.
Elsewhere, caution prevails among investors as the truce remains fragile; its durability is being questioned in light of the heavy strikes launched by Israel in Lebanon yesterday.
Meanwhile, navigation through the Strait of Hormuz remains closed to vessels without a permit, after a brief reopening yesterday.
Oil prices are rising as investors remain skeptical about the stability of the Middle East ceasefire. Brent futures are up approximately 2 dollars at 96.90 dollars per barrel.
As of 9:35 a.m., the FTSE Mib index is down 0.25%.
Following yesterday's slump of over 5.5%, ENI is attempting a rebound, trading up 1%. The stock, like the entire oil sector, is moving at the mercy of crude price trends, which have been highly volatile recently. Despite today's pressure, the stock maintains a gain of over 13% over the last month and 47% year-to-date.
Among oil services, TENARIS is up 1%, while SAIPEM advances 0.9% after hitting 4.18 euros at the open, its highest level since late January 2022.
The utility sector is also in the spotlight today, led by ERG, A2A, ASCOPIAVE, ACEA, and IREN, with gains ranging between 1.1% and 1.8%.
After yesterday's rally, banking stocks are being overlooked and hit by profit-taking. The sector index is down 0.6%. UNICREDIT is falling in line with the sector index, while INTESA is down 0.7%.
LEONARDO is retreating by 2.4%. The stock has been under selling pressure for days, weighed down by expectations regarding the board renewal lists. According to press reports, Gianpiero Cutillo and Lorenzo Mariani - respectively head of the helicopter division and former co-general manager of the group - are seen as frontrunners to succeed CEO Roberto Cingolani.
Luxury goods are also down, with CUCINELLI and MONCLER declining between 1% and 2%. DIASORIN is also lower, losing 1.3%.
Finally, I GRANDI VIAGGI remains in demand today with a 2.7% jump, benefiting from the easing of Middle East tensions which is providing a boost to the tourism sector.
(Giancarlo Navach, editing Antonella Cinelli)
