Piazza Affari edged lower by late morning, weighed down by profit-taking on banking stocks, leaving the Milanese index trailing slightly behind other major European bourses.
Across Europe, markets showed a cautious upward trend, buoyed by hopes for a swift agreement on US-EU trade relations. However, negative sentiment from Wall Street index futures helped cap gains.
Around 12:30 pm, the Ftse Mib index slipped 0.2%, with trading volumes hovering around one billion euros.
Key movers included:
Banking stocks were the main drag, retreating after yesterday's gains, with the sector index down 0.7%. Banks were also among the few negative sectors in Europe.
After surging 4.6% yesterday, UniCredit fell 1.2% today, as investors await upcoming administrative court rulings on the government's use of "golden power" regarding the takeover bid for Banco Bpm (-0.8%). Following M&A-driven rallies in the sector, MPS dropped 0.9%, Mediobanca 0.7%, Bper 0.2%, and Pop Sondrio slipped 0.04%.
Hopes for a tariff deal that would not unduly penalize automakers supported the European automotive sector, with Stellantis rising 1.5%.
Iveco, on the other hand, suffered a 2.9% decline due to profit-taking, a trader explained, also citing a lack of updates on extraordinary operations involving its defense division.
In the defense sector, Leonardo also slipped 0.6% after a strong start to the session.
On the upside, Campari gained 1.3%, STMicroelectronics 1.5%, and MFE MediaForEurope 1.7%.
NewPrinces advanced 4% following an agreement to acquire from Heinz Italia the activities related to infant and specialist nutrition products (Plasmon, Nipiol, BiAglut, Aproten, and Dieterba).
(Reporting by Claudia Cristoferi, editing by Andrea Mandalà)
