Yesterday afternoon's renewed armed clash between US and Iranian forces cooled hopes for a near-term diplomatic solution, triggering a morning retracement. However, investors remain resilient, favoring a scenario where the conflict nears its end.
'It appears difficult to argue against the market's inclination to treat the current phase as the 'beginning of the end' of the conflict and to price in a progressive dissipation of tensions across all macro-assets,' MPS strategists noted in their daily briefing.
Supporting the market, they added, is a strong US earnings season and a limited impact on US growth despite the oil shock. In this regard, US non-farm payroll data due early this afternoon will be under close scrutiny.
Ahead of the data, Wall Street futures are trading slightly higher following yesterday's weakness.
By 12:45 PM, the FTSE Mib index was up 0.13%, bolstered by a recovery in banking stocks and gains in energy and selected industrial names.
Trading volume stood at 1.2 billion euros.
Stock highlights:
** PRYSMIAN stands out on the FTSE Mib, rising 3.6% after Deutsche Bank upgraded its rating to 'buy' with a target price of 167 euros. The bank highlighted a highly favorable environment driven by surging fiber optic prices and robust demand linked to data centers and artificial intelligence.
** POSTE is up 2.1%, maintaining yesterday's momentum after upwardly revising its full-year forecasts following better-than-expected quarterly results.
** Oil stocks are gaining as Brent crude slows its pace but remains slightly higher above 100 dollars per barrel. ENI is up 1.9%, while TENARIS gains 1.6% after Barclays raised its target price to 34.5 euros from 33 euros.
** Among banks, BPER remains weak, shedding 1.5% as it continues the retracement triggered yesterday by quarterly results that offered no surprises and cautious guidance, following the stock's recent all-time highs. Citing the stock's long period of outperformance, Kepler Cheuvreux cut its rating on the Emilian lender to 'hold' from 'buy', reducing the target price to 13.3 euros from 13.9.
** INTESA is down 2%, extending losses following the release of its quarterly results.
** Selling pressure hit the defense sector, with FINCANTIERI losing 2.3%, LEONARDO down 2.4%, and AVIO shedding 1.17%.
** In the automotive sector, STELLANTIS gained 1.5% following the announcement of an expanded partnership with Leapmotor. BREMBO jumped 9.6%, continuing the rally sparked yesterday by better-than-expected quarterly figures and an upgrade to its 2026 guidance, while Kepler Cheuvreux raised its target price to 10 euros from 9.
(Andrea Mandalà, editing Antonella Cinelli)
