Indices turned negative on the Milan Stock Exchange by late morning.

Investors are maintaining a cautious stance ahead of the Federal Reserve's interest rate decision, expected later today.

Markets are pricing in with nearly 90% certainty a 25 basis point rate cut, but the focus will be on any signals regarding the future trajectory of the cycle.

In contrast, the situation in Europe is markedly different, where robust economic data have led investors to rule out an interest rate cut by the European Central Bank in 2026.

Today, ECB President Christine Lagarde reiterated that monetary policy is in a "good position," a signal interpreted by investors as an indication that there is no need to adjust rates.

Around 12:45 p.m., the FTSE MIB index was down 0.46%. Trading volumes were just under 1 billion euros.

Futures on U.S. stock indices were also negative, suggesting a weak start for Wall Street this afternoon.

Stocks in Focus Today

** Selling pressure was evident across most sectors. Cement stocks, which had recently risen on expectations of reconstruction in Ukraine, were particularly hard hit, with BUZZI falling 2.2%, CEMENTIR down 1.2%, and WEBUILD retreating 1.1%.

** The defense sector was also in the red, with FINCANTIERI losing 3.7% after a recent rally linked to its upcoming inclusion in the FTSE MIB index, and LEONARDO down 1.9%.

** The banking sector index was flat, supported by UNICREDIT, which rose 0.64%, while INTESA dropped 0.6%. BANCA MPS returned to negative territory, falling over 1%, while its subsidiary MEDIOBANCA advanced 0.7%.

** Among insurers, GENERALI lost 0.8% after yesterday's rally.

** BFF BANK dropped sharply by 7.9% after Deutsche Bank downgraded its rating to 'hold' from 'buy'.

** In the industrial sector, FERRARI extended its losses with a 3.5% decline after Morgan Stanley initiated coverage with an 'equal weight' rating and a target price of 367 euros.

** In the luxury segment, MONCLER slipped 2.2%, while BRUNELLO CUCINELLI was down 0.7% on the day of its update call with analysts and investors. Equita expects "confirmation of guidance with a confident tone."

** DAVIDE CAMPARI gained about 1% on rumors, reported by Reuters, that Luxembourg-based holding Lagfin is negotiating with the Italian tax agency to settle a tax dispute by paying around 400 million euros. According to Intermonte, "if confirmed, the news would help reduce uncertainty on the governance front, eliminating an overhang related to the seizure of shares held by the main shareholder."

** Finally, ENI edged up 0.4%, while SAIPEM and TENARIS retreated between 0.9% and 0.6%.

(Giancarlo Navach, editing by Stefano Bernabei)