Indexes showed little movement at the start of trading on Piazza Affari, consolidating positions in a cautious market as investors await U.S. inflation data, the main macroeconomic event of the week.

The CPI figures are expected to show an acceleration in December, reinforcing expectations that the Federal Reserve will keep rates unchanged at its next meeting on January 27-28.

For now, tensions between the Fed and the U.S. Department of Justice have not had a significant impact on the stock markets, with Wall Street closing slightly higher yesterday.

On the corporate front, the U.S. earnings season kicks off today with results from the first major American banks, including JP Morgan and Bank of New York Mellon.

Geopolitical issues remain in the background, while oil prices are rising, with Brent futures climbing to just above $64 per barrel.

Around 10:00 a.m., the Ftse Mib index was flat.

After yesterday's buying, defense-related stocks are seeing profit-taking, with LEONARDO and FINCANTIERI retreating by 0.5% and 3.8%, respectively, penalized by a Deutsche Bank report that downgraded Leonardo to 'hold' from 'buy', while it revised Fincantieri's target price to 23 euros from 26 euros.

DIASORIN remains strong today, up 3.5%, after being buoyed yesterday by an announcement from Dutch biotech company Qiagen, which identified the QuantiFERON test—marketed in partnership with the Italian group—as a key driver of revenue growth.

Among the banks, major players INTESA and UNICREDIT are stable, while MPS is surging, up 1.98%. According to three sources familiar with the matter, Unicredit CEO Andrea Orcel has discussed the possibility of acquiring the 17.5% stake in MPS held by Delfin during talks with the holding company's head, Francesco Milleri. In its daily note, broker Equita stated that "in this type of operation, the government's role should not be underestimated, considering that Prime Minister Meloni has recently reiterated her support for the creation of a third banking hub."

BANCO BPM is up 0.3% after Credit Agricole confirmed it had received authorization from the ECB to increase its stake above 20% in the institution led by Giuseppe Castagna.

Oil stocks are positive, following crude oil gains, with SAIPEM up 1.8% and ENI up 1.1%.

CUCINELLI is up 0.2% after strong fourth-quarter revenue data released yesterday after market close. UBS raised its target price for the fashion house to 123 euros from 122 euros.

Finally, PIRELLI is strong, advancing 2.6%, supported by a 'buy' rating as Berenberg initiated coverage, setting a target price of 8 euros.

(Andrea Mandalà, editing Francesca Piscioneri)