The geopolitical landscape remains at the forefront of investor concerns, although sentiment this morning is buoyed by statements from President Trump, who said he may not attack Iran for now.
On the corporate front, some strong quarterly results in the technology and financial sectors in Europe are lending support, while in Wall Street, investors are particularly awaiting results from BlackRock, Goldman Sachs, and Morgan Stanley after yesterday's lukewarm reception of bank earnings.
At 12:20 PM, the FTSE Mib index is up 0.32%, with volumes reaching 1.3 billion.
Stocks in focus:
** Leading the FTSE Mib, PRYSMIAN climbs 2.8%, boosted by positive analyst ratings ahead of its fourth-quarter results.
** Bank stocks are well bid in a positive sector performance across Europe, thanks to some upbeat quarterly reports. BANCO BPM gains 1.8%, while UNICREDIT rises 1.2% after describing recent speculation about its interest in Delfin's stake in MPS as "speculative and unjustified." MPS slips 1% after four consecutive sessions of gains driven by this speculation.
** STM advances 1.6%, supported, like the entire European chip sector, by strong results from semiconductor giant Tmsc, which confirm robust interest in AI investments.
** Luxury stocks are down, weak across all continental markets, with MONCLER falling 2.7%, CUCINELLI down 1.7%, and FERRAGAMO off 2.9%.
** Oil stocks are also declining, weighing on the main index, as they are hit by weaker crude prices after U.S. President Donald Trump cooled expectations of military intervention against Iran. ENI drops 1.7%.
** Among smaller-cap stocks, BFF tumbles 11% after Kepler Cheuvreux downgraded its rating to 'Hold' from 'Buy'.
(Andrea Mandalà, editing by Antonella Cinelli)
