The more relaxed atmosphere allows investors to refocus on key themes that have supported risk appetite over the past year, first and foremost technology, as well as sectors hit hardest by geopolitical uncertainty since the start of the year, such as industrials and financials.
Conversely, the de-escalation on the military front is prompting investors to recalibrate their positions in defense stocks, locking in some profits.
"The indications from Trump's speech yesterday are positive, as the market had begun to price in adverse geopolitical scenarios," analysts at Intermonte commented.
"However, the level of uncertainty and geopolitical volatility remains a very relevant issue for the market, with developments that still appear uncertain at this stage," they added.
Wall Street, where futures point to another positive session, continues to catch its breath after yesterday's rebound, awaiting signals from PCE data—the Fed's key price gauge—weekly jobless claims, and the final reading of third-quarter GDP.
Around 13:10, the Ftse Mib was up 0.86%. Volumes hovered around 1.5 billion euros.
Stocks in focus:
** Leading the Ftse Mib, STM jumps 3.3% in a strong session for the tech sector, also boosted by statements from Nvidia CEO Jensen Huang at Davos, who said trillions of dollars in investment will be needed to support the surging demand linked to artificial intelligence.
** PRYSMIAN, increasingly associated with AI, also rises 2.8%.
** The return to financials after the recent correction is mainly targeting asset managers and diversified financial services: MEDIOLANUM up 2.6%, AZIMUT up 2%, and FINECOBANK up 1.18%.
** Among more traditional banks, MPS stands out, rising 2% as the market watches for any new developments in the bank's governance. The board meets today to define the rules for the list of directors to be reviewed by the ECB. Subsidiary MEDIOBANCA also follows, up 1.7%.
** TELECOM ITALIA is buoyant, up 2% after the EU Commission presented the Digital Networks Act to harmonize the European regulatory framework for connectivity networks and reduce cross-border operational barriers. The stock also benefits from the update and extension of Tim Brasil's contracts with American Tower, expected to have a positive impact on the Brazilian subsidiary's leases.
** Gains across the utilities sector, with ENEL up 2%, A2A up 1.6%, and HERA up 1%.
** Luxury stocks also rebound, with CUCINELLI, coming off eight consecutive losing sessions, gaining 0.8%.
** Bucking the trend, LEONARDO falls 2.2%, while FINCANTIERI plunges over 6%, weighed down by the lessening of the most extreme scenario over Greenland and expectations of a possible peace plan for Ukraine.
** Oil stocks are down as oil prices slip after recent gains. In this context, ENI is unable to benefit from news of the binding agreement signed with Socar, Azerbaijan's state oil company, for the sale of a 10% stake in the Baleine Project in Ivory Coast.
(Andrea Mandalà, editing Francesca Piscioneri)
