In Piazza Affari, the long wave of the correction triggered Friday continues, in line with global equities, when strong December U.S. employment data reduced market expectations for Fed cuts.

In the absence of any new cues, and with U.S. futures falling, the main index of the Milan stock market fails to reverse direction even though increased volatility in equity markets does not rule out such movements.

The prevailing market sentiment remains one of extreme caution, with investors looking to bonds as a more attractive alternative to equities amid rising yields.

The focus has shifted to the coming days, and in particular to Wednesday's U.S. inflation numbers. Any higher-than-expected data could make a dent in the only rate cut still fully priced in for this year.

The week will also see the start of the quarterly earnings season with results from major U.S. banks, starting on Wednesday with Citigroup, Jpm, and Goldman Sachs.

Shortly after 1 p.m., the Ftse Mib gave up 1.3 percent. Volumes of about 1 billion euros in counter value.

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Bottom of the Ftse Mib Stm loses 3.8 percent amid heavy pressure for the semiconductor sector in the U.S. on fears of new export restrictions on artificial intelligence chips. The stock of the French-Italian manufacturer, which will release quarterly results on Jan. 30, is also suffering from analysts' concerns about the sector in the short term. Banca Akros cut its target price to 27 from 28 euros while confirming its neutral rating due to poor visibility on recovery in the second half of 2025, while a foreign broker reportedly cut its rating to 'hold' from 'buy'.

Also down were automotive stocks such as Ferrari (-3%), Stellantis (-2.7%) and Iveco (-2.4%) along with other cyclical industrials, including Interpump (-1.9%).

On the other hand, oil majors are positive, supported by fresh rises in crude oil prices on expectations that U.S. sanctions against Moscow introduced Friday will affect Russian crude exports to major buyers, China and India. Eni rises 0.76 percent, Saipem 0.15.

On the other hand, the run-up in gas prices favors utilities with Terna up 0.3 percent, A2a and Hera up about 0.2 percent.

Telecom Italia curbs initial progress and rises 0.12%, while a judge's ruling on the legal dispute brought by Vivendi against the way Tim's board approved the sale of NetCo is expected today.

(Andrea Mandalà, editing Sabina Suzzi)