The escalation of geopolitical tensions, with street protests in Iran and the possibility of US military intervention, along with frictions between President Trump and the US Federal Reserve, have not had a decisive impact on stock markets, although their effects have been more concentrated on commodity markets, especially metals.
On the macroeconomic front, yesterday's much-anticipated US inflation data did not alter traders' expectations regarding the Fed's monetary policy.
In this environment, investor activity is limited to sector rotations and isolated moves related to earnings season.
Activity could pick up in the afternoon with new data coming from the US, where figures on producer prices and November retail sales are on the agenda. Attention is also on the new session of the US Supreme Court, which could rule on the issue of tariffs.
Around 12:00 pm, while Wall Street futures are trading slightly lower, Milan's Ftse Mib index is up by about 0.2%.
Trading volumes are around one billion euros.
Notable stocks:
** Utility stocks are in the spotlight on a positive day for the entire European sector. In Milan, A2A is up 1.6%, followed by HERA, ITALGAS, TERNA, and ENEL, all posting gains between 0.8% and 1.3%. Equita has included Enel in its best picks for 2026 and raised its target price by 6% to 10.3 euros, stating that the stock "offers further re-leverage opportunities thanks to the sector's stronger balance sheet, potentially translating into higher investments (Italy and Spain) and increased shareholder returns." In the sector, the broker also raised the price target for ITALGAS (to 11 euros, +5%), describing the company as having the "strongest growth profile in the regulated sector, combined with improved financial leverage and dividend yield."
** TELECOM ITALIA is among the best performers on the Ftse Mib, rising 2.2%, after Il Messaggero reported that the new strategic plan to 2029, currently being defined and expected to be presented to the market in mid-March, envisages synergies with Poste Italiane worth 1-1.2 billion euros. Equita considers the figure reported by the newspaper to be "reasonable," implying a medium-term EBITDA benefit of around 200 million euros annually.
** BUZZI rebounds by 1.6%, after yesterday's more than 7% drop following news of Russian authorities seizing four plants in the country owned by the Danish construction materials group Rockwool. Today's partial recovery is also helped by Barclays raising its target price to 57 euros from 55 euros.
** Bank stocks are weak, with BANCO BPM down 1.3%.
** At the bottom of the Ftse Mib, LOTTOMATICA is down for the fifth consecutive session, losing more than 2%.
** Outside the main index, EuroGroup Laminations jumps nearly 8% after Asian private equity firm FountainVest received conditional approval from the Italian government to acquire a majority stake.
(Andrea Mandalà, editing by Francesca Piscioneri)
