U.S. futures are also in the red, weighed down like other markets by renewed fears over a potential breakdown in U.S.-Iran negotiations following Friday's short-lived optimism.
By 12:35 CET, the FTSE Mib was down 1.4%, though the dividend effect accounts for approximately 0.77% of that drop. Trading volumes stood at around 1.5 billion euros.
Key stock movers:
** Friday's announcement regarding the opening of the Strait of Hormuz, which had rallied markets, is today facing a new substantial traffic blockade. Consequently, oil prices have resumed their climb, boosting energy stocks such as ENI, TENARIS, and SAIPEM. Eni, which today announced a new offshore gas discovery in Indonesia described by Equita as "substantial and high quality," is up 2.9%. Saipem, having signed a contract with Eni to build the new Priolo biorefinery, rose 1%.
** Banks are mixed, with INTESA SANPAOLO and UNICREDIT at the bottom of the index, falling nearly 2%. UniCredit CEO Andrea Orcel this morning outlined further details of his strategy to extract more value from Commerzbank, which is up about 1% in Frankfurt. MPS remains little changed.
** Utilities are trading higher due to their defensive nature, while the European automotive sector, the quintessential cyclical industry, is struggling, with STELLANTIS down 2.9%.
** Luxury goods are also declining across Europe, given the sector's high exposure to the Middle East crisis, which serves as both a significant market and a bridge for tourist flows between Europe and Asia.
** FERRAGAMO is an exception, rising 0.7% after retreating from early highs, following the appointment of Fabrizio Freda as a new special strategic advisor for the luxury brand.
** Stocks trading ex-dividend today include Banca Mediolanum, Banco Bpm, Campari, Ferrari, Iveco, Mediobanca, Prysmian, and UniCredit, along with Anima and Maire outside the FTSE Mib.
(Claudia Cristoferi, editing Gianluca Semeraro)
