Piazza Affari remains largely unchanged, mirroring the subdued mood across other European exchanges during a semi-holiday session dominated by anticipation over the upcoming U.S. Federal Reserve meeting on interest rates scheduled for midweek.

U.S. futures are also hovering around the flatline.

Around 12:30 p.m., the Ftse Mib index was down by 0.02%. Trading volumes remained low, just above EUR800 million.

Among the standout stocks:

** Among the generally overlooked banking sector, MPS shines (+4%), rebounding after a sharp decline triggered by the Milan prosecutor's investigation into the MEDIOBANCA (+2%) operation, according to a trader. The Siena-based bank is benefiting today from the support for CEO Lovaglio, reaffirmed by the board on Friday evening, but above all from a report over the weekend by Il Sole 24 Ore, which stated that Consob, in a document dated September 15, had ruled out any secret agreement between the bank and certain shareholders to gain control of Mediobanca and Generali. "The Consob document could be significant in this matter and in the outcome of the ongoing investigation. We continue to consider direct implications for Mps unlikely," commented Intermonte in a note.

** BUZZI rises by 2% after Deutsche Bank upgraded its rating to 'buy' from 'hold' and raised its target price to EUR58 from EUR48. CEMENTIR also performed well.

** FINCANTIERI continues its rally (+3%) ahead of its inclusion in the Ftse Mib index. Equita also referenced reports from CNN Portugal a few days ago, indicating that Lisbon had selected the Italian group to build three frigates worth a total of EUR3 billion.

** The automotive sector remains weak, as seen across Europe. FERRARI in particular suffers, dropping 2.3% after Morgan Stanley downgraded its rating to 'equal weight' from 'overweight' due to relatively modest short- and medium-term growth prospects.

** FERRAGAMO also declined by around 2% (to EUR7.84), after Barclays cut its target price to EUR4.9 from EUR5.1.

(Reporting by Claudia Cristoferi, editing by Andrea Mandalà)