Investors remain cautious as the truce appears fragile, with market participants monitoring its sustainability in the wake of heavy strikes launched by Israel in Lebanon yesterday.
The markets are seeing some profit-taking on yesterday's top performers, alongside a sectoral rotation that is currently favoring the utilities space.
Renewed shipping restrictions in the Strait of Hormuz—which had briefly reopened yesterday—for vessels lacking permits are pushing oil prices higher. Brent crude futures have gained over 3.6 dollars, trading around 98 dollars per barrel.
As of 12:45 CET, the FTSE Mib index is down .15%. Trading volumes remain modest at just over one billion euros.
Stock Highlights
** Following yesterday's slide of more than 5.5%, ENI is rebounding today with a 2.3% gain. The stock, like the broader oil sector, is moving in tandem with crude prices, which have been highly volatile recently. Despite this volatility, the stock maintains a gain of over 15% over the past month and 49% year-to-date.
** Among oil services, TENARIS is up 2.2%, while SAIPEM advances 2.45% after hitting 4.18 euros in early trading, its highest level since late January 2022.
** The utilities sector is also in the spotlight, with ERG and A2A rising 0.9%, ASCOPIAVE up 1.4%, ACEA gaining 1%, and IREN climbing 1.1%. Gains are also seen in gas distributor ITALGAS, which is up 2.2%, while TERNA and SNAM both advance by more than 1%.
** After yesterday's rally, banking stocks are being overlooked as they fall victim to profit-taking. The sectoral index is down 0.4%. UNICREDIT is trading in line with the sector index, while INTESA retreats by 0.85%.
** LEONARDO is down 1.35%. The stock has been under selling pressure for several days, weighed down by expectations regarding the board renewal lists. According to press reports, Gianpiero Cutillo and Lorenzo Mariani—respectively head of the helicopter division and former co-general manager of the group—are frontrunners to succeed CEO Roberto Cingolani. Equita notes that if this scenario is confirmed, it "would likely represent a seamless transition."
** Luxury goods are also trading lower, with MONCLER down 2% and CUCINELLI falling 1.7%. The latter is set to report first-quarter results after the market close today.
** Tracking the decline in the luxury sector, FERRARI has pulled back by 2%. DIASORIN is also trading lower, losing 1%.
(Giancarlo Navach, editing by Andrea Mandalà)
