In line with expectations, the US central bank cut rates by 25 basis points, signaling concerns about the fragility of the labor market.
The Fed also indicated its intention to continue gradually reducing rates for the rest of the year, projecting two more quarter-point cuts.
Despite the absence of surprises, the Fed's decision to begin a cycle of monetary easing freed the market from the anticipation that had kept it essentially frozen in recent sessions, allowing it to resume its long risk-on phase.
At around 9:50 a.m., the FTSE MIB index was up 0.5%, supported in particular by banks, which were up 0.4% on average.
Purchases resumed on MPS (+2.2%) and MEDIOBANCA (+2%), which had been the focus of profit-taking in the last two sessions, in a concerted sector movement that also involved BANCO BPM and BPER in a more dynamic way.
Money is flowing into PRYSMIAN (+2.3%), with JP Morgan raising its target price on the cable manufacturer's stock to €87 from €86, and into technology stocks, which are strong today on all global markets. In Milan, STM stands out on the FTSE MIB with a gain of 2.4%.
The return of risk appetite on the markets penalizes more defensive stocks such as utilities.
Among today's positive developments, OVS jumped more than 7% thanks to better-than-expected first-half results.
(Andrea Mandalà, editing)
