Piazza Affari gets off to an upward start, recovering yesterday's losses, amid a more favorable backdrop toward risk-averse investments after statements by Fed Chairman Jerome Powell that investors say cement the prospect of a U.S. cost-of-money cut.

Further insights on the next Fed moves could come in the evening from the release of the June Fomc minutes.

Also supporting investor mood is a relative narrowing of the France/Germany government bond spread, although the political situation in Paris remains a major indicator for the market just days before the second round of elections.

Around 9:40 a.m., the Ftse Mib is up 1.15 percent. Rare trading is expected today in view of the U.S. Fourth of July holiday with markets closing.

In the banking sector cues on Mps, up 4.2%. Yesterday the three-month Treasury lock-up on the 26.7 percent stake held to date expired. Money a bit across the board with UniCredit up 1.2% and Intesa up 0.6%. Also well rallied is Bper up about 3.5% after Unipol (+1%) signed an equity swap agreement on 4.77% of the capital, rising to 24.62% of the Emilian bank.

Leonardo also did well, up 2.2%. German newspaper Handelsblatt, citing industry sources, reports that the Italian government is planning to buy Panther tanks and Lynx armored fighting vehicles from German group Rheinmetall for about 20 billion euros over 15 years.

Weak Eni (-0.2%). Morgan Stanley resumed coverage on the stock with an "Equal-weight" recommendation, citing the stock's attractive valuation while pointing out higher downside risks to the 2024 consensus.

(Giancarlo Navach, editing Francesca Piscioneri)