Piazza Affari continues to rise in the first session of the second half of the year on the back of the positive reaction of all European equities, Paris in the lead, lifted by the outcome of the first round of parliamentary elections in France.

The victory of Marine Le Pen's far-right Rassemblement National (Rn) party was widely expected but the smaller margin compared to some polls seems to scale back the feared absolute majority scenario, also in view of the expected formation of a coalition of the other two fronts, Macron and the left, in the second round.

According to one trader, after the shock over the announcement of early elections in recent weeks, the market has calmed down even though there is still a France risk.

In addition, the start of the second half of the year and the approach of summer, when investors usually prefer not to find themselves overloaded with risk, suggests a cautious approach to the market, he adds.

Around 1 p.m., the Ftse Mib is up 1.6 percent after it closed June down about 3.9 percent. Volumes on Milanese equities around 1 billion.

On Wall Street, stock index futures are traveling in positive terrain as they await data on the manufacturing Ism, which is seen contracting for the third consecutive month.

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The banking sector, which had been among the hardest hit in June (-5% for the Italian sector index), confirms its early rebound on the back of strong sector gains in France. In Milan, Mps in particular stands out at +5.9% and Bper at +4.6%, with the biggies Unicredit and Intesa Sanpaolo posting performances between 3% and 4%.

After a period of weakness, banks are taking advantage of the positive sentiment to rally, a trader points out, recalling how in such cases Mps is the stock that benefits most from M&A prospects. Tomorrow the lock-up on the residual stake held by the Mef on the Sienese institution, amounting to 26.7 percent, expires.

Widespread rises across all financials with Poste Italiane at +3.1% and Generali at +2.5%.

Also supporting the Milanese list are energy, both utilities and oil.

Telecom Italia rises 1.6% on the day of the closing of the sale of NetCo to Kkr and marking a new era for the former telephone monopolist.

Fincantieri is also in the spotlight with shares up 4.2 percent and rights on the capital increase, due to close July 11, up 8.8 percent. Equita cites the "positive news" on the new order from the Italian Navy for a €500 million submarine announced Friday at open market, while another Italian broker restarted coverage on the stock with an 'Outperform' recommendation.

(Andrea Mandalà, editing)