The trading session at Piazza Affari is struggling to gain momentum, with the index weighed down by widespread weakness in the banking sector, which is dampening the upward drive of Stellantis, STM, and a handful of other industrial stocks.

Overall, sentiment across European markets remains cautiously optimistic, buoyed by Wall Street's positive close after weak macroeconomic data reinforced expectations of a U.S. interest rate cut next week.

Around 11:50 a.m., the Ftse Mib index was up a marginal 0.05%. Trading volumes were just below one billion euros.

STELLANTIS led the main index, jumping 3.6% within a positive European auto sector. This followed U.S. President Donald Trump's proposal yesterday to drastically reduce fuel efficiency standards, aiming to make it easier for automakers to sell gasoline-powered vehicles. In its daily note, Equita described a positive impact for the entire sector: "We believe the procedure for the modification will be finalized, allowing automakers to save on research and development costs, avoid the risk of penalties for non-compliance, and likely limit car price increases." Meanwhile, BofA Global Research raised its target price to EUR10.3 from EUR9.5.

STM also rallied, up 3.1%. The European semiconductor sector benefited from Bloomberg reports that China's Cambricon Technologies plans to triple chip production in an effort to replace Nvidia in the Chinese artificial intelligence market.

FINCANTIERI climbed 3.6% after announcing the signing of an industrial cooperation agreement in Bahrain with Asry. According to Equita, the deal paves the way for the group's entry into the Bahraini market, strengthening its presence in the strategically important Middle East region.

It was also officially confirmed last night that Fincantieri will join the Ftse Mib in the next quarterly index review, replacing INTERPUMP, which is up over 4% today.

LEONARDO was also positive, rising 0.5%. Defense Minister Guido Crosetto said that other countries, including Germany and Australia, may be interested in joining the Gcap program, in which the Italian group participates alongside Japan's Mitsubishi Heavy Industries and the UK's BAE Systems. Requests have also been received from Saudi Arabia and Canada, he added.

Banks, however, remained weak (the sector index down 0.5%), with MPS resuming its decline (-2%) after yesterday's rebound, which followed four negative sessions triggered by news of a Milan prosecutor's investigation into the Sienese bank's attempted takeover of MEDIOBANCA (-0.3%).

Within the sector, BANCO BPM and POP SONDRIO both fell just over one percentage point.

(Sabina Suzzi, editing by Andrea Mandalà)