In the absence of a compelling catalyst for a sustained rally, and facing the risk of sudden reversals, traders are exercising extreme caution. Most prefer to remain on the sidelines rather than taking new positions, focusing instead on specific individual stories, according to one trader.
The European benchmark Stoxx 600 index has erased its earlier gains, while Wall Street futures, which were initially flat, are also showing signs of weakness.
By 1:00 p.m. CET, the FTSE Mib index was up 0.5% after previously gaining more than 1%. Trading volumes stood at approximately 1.7 billion euros.
Stock Highlights:
** STM is leading the pack with a 5.3% jump, buoyed by robust results from Samsung Electronics which confirmed the sustained strength of demand for AI chips.
** INWIT is also performing strongly (+6%), continuing its recovery from recent losses despite fourth-quarter results released Thursday coming in line with expectations and a conference call that offered few new catalysts.
** FINCANTIERI is up 2.8%, supported by an upgrade to "buy" from Jefferies. Meanwhile, Akros highlighted an agreement between subsidiary Fincantieri Marine Group, Fraser Shipyards, and Donjon Marine to develop new naval programs for the U.S. Coast Guard.
** Buying momentum in the banking sector has slowed, with the sectoral index now up 0.6%.
** On the downside, LEONARDO stands out with a nearly 7% drop. The market is reacting with significant skepticism to reports regarding the potential replacement of current CEO Roberto Cingolani in the upcoming round of state-owned enterprise appointments.
** Outside the main index, NEWPRINCES has rebounded by over 14% following a two-session collapse. The company announced this morning an acceleration of its buyback program, citing current valuations and its solid financial position.
** BFF BANK is also rallying, up 24% after last week's 54% plunge. The rebound follows news of the Bank of Italy's decision to appoint two temporary commissioners to work alongside the board to address specific financial and internal control issues.
(Andrea Mandalà, editing Stefano Bernabei)
