One trader points out that what prevails on the stock exchanges is caution as we wait to see what moves the next U.S. President Donald Trump will make. And while waiting, speculation dominates, also fueled by volumes that have not yet returned to normal.
On the macro front, among the most monitored data of the week, especially for its implications for the ECB, is the December estimate of eurozone inflation to be released at 11 a.m. by Eurostat. Expectations show price dynamics rising to 2.4 percent from 2.2 percent in November. The acceleration is also expected after yesterday's similar German indicator showed a harmonized annual increase to 2.9 percent, above the Reuters consensus of 2.6 percent.
Around 9.40 a.m. the Ftse Mib retreats 0.75% recovering from the lows at the start of the session.
Banks sold off with the sector index giving up 1.7%. Among the biggies Intesa at -2.1% and Unicredit at -1.6%. Down also Bper, which flexes 2.3%. Unipol, the list's best stock in 2024, is also down 2.6%.
Lower crude oil prices hurt the oil sector with Saipem down 1.5% and Eni down 1%. On the major Morgan Stanley cut its rating to 'equal-weight' from 'overweight,' with a target price to 15 euros from 17.1 euros.
Tim collection countered with a 2.2% rise, a defensive stock in times of market downturn.
Cues on Fincantieri rising 2.9%. On the stock, Jefferies raised its target price to 7.7 euros from 5. In addition, broker Intermonte cites President-elect Donald Trump's radio interview that the U.S. may ask allies for help with an increase in shipbuilding to supply the U.S. Navy. "We consider the indiscretion regarding a possible increase in military spending for the U.S. Navy positive for Fincantieri, which operates directly in the United Statesthrough its subsidiary Fincantieri Marinette Marine with production sites in Marinette, Green Bay and Sturgeon Bay," the broker writes in the daily.
(Giancarlo Navach, editing Claudia Cristoferi)