Stock market movements are thus largely confined to specific sectors, such as defense—which is surging thanks to the intention of U.S. President Donald Trump to increase the country's military budget by over 50%—and to some isolated profit-taking on select names.
Milan's bourse is also weighed down by the weak performance of major European stock markets, which are feeling the effects of some disappointing quarterly results, as well as U.S. futures ahead of tomorrow's key labor market data.
Around 13:20, the Ftse Mib index was marginally lower by 0.1%, with volumes at 1.4 billion euros.
Stocks in focus:
** Defense stocks with U.S. exposure remain well-bid, though off their morning highs, with LEONARDO up 2.8%, AVIO up 2.7%, and FINCANTIERI gaining around 1%.
** After two sessions of weakness, interest has returned to banking stocks, with MEDIOBANCA leading the sector at +1.8%, and BANCO BPM up 0.5%.
** Oil stocks are also rebounding as crude prices stabilize after two days of declines amid concerns about a potential glut linked to prospects of Venezuelan stock sales.
** Among utilities, ITALGAS is strong again today (+1.8%), buoyed by the technical effect following yesterday's announcement from Snam of a green convertible bond maturing in 2031, backed by Italgas shares, to refinance a similar convertible bond due in 2028. The underlying Italgas shares will have a strike price at a 25% premium to the average share price from January 7 to 9, during which the stock price could be supported "considering a net positive effect from the closing of short hedging positions on the 2028 bond, which should more than offset any opening of new short positions on the 2031 convertible," explains Equita.
** In the luxury sector, FERRAGAMO stands out with a sharp drop of more than 8%, penalized by Banca Akros's downgrade to 'sell,' which has accelerated profit-taking on the luxury stock after a strong run in recent months. The stock is also known for its high volatility within the sector.
** Among the decliners, STELLANTIS is down 1.8% despite an upgrade from Piper Sandler to 'overweight'; TELECOM is down 1.9% on profit-taking after a nearly 8% gain over the previous three sessions. AMPLIFON also fell 3.5%, and PRYSMIAN dropped 1.8%.
** Elsewhere on the list, DANIELI had an excellent session (+3%) thanks to a $650 million mega-contract with Hyundai to build a new plant in the United States.
** ALTEA GREEN POWER surged 3.5% after receiving the latest milestone payment of over 15 million euros for the 250 MW Bess project in Rondissone (To).
(Andrea Mandalà, editing by Francesca Piscioneri)
