Piazza Affari continues to trade higher, in line with the rest of Europe, during a recovery session after a negative start to the week.

The November inflation data for the Eurozone, despite an unexpected rise, has not altered investors' expectations that the European Central Bank will maintain interest rates unchanged in the short term.

The cautious advance of U.S. futures indicates a more relaxed atmosphere on Wall Street as well, where attention is turning to Friday's upcoming PCE data--the Federal Reserve's preferred inflation gauge--just ahead of a highly divided Fed board meeting next week.

Around 1:00 pm, the Ftse Mib index was up 0.43%. Trading volumes totaled 1.2 billion euros in value.

Key stocks in focus:

** In a particularly strong financial sector, GENERALI stands out with a 2.2% rise, benefiting from BofA's upgrade to "buy" from "underperform" and a target price set at 39 euros. According to the broker, the stock presents attractive valuations and growth potential, thanks to a favorable business mix and the prospect of increased shareholder returns.

** The insurance company remains under close scrutiny by investors due to the potential implications of the Milan prosecutor's investigation into MPS's attempted takeover of Mediobanca.

** Banking shares are performing well, except for MPS, which has remained weak since last Thursday when news of the investigation broke. BPER, POP SONDRIO, UNICREDIT, and MEDIOBANCA are all posting gains of around one percentage point.

** CAMPARI is strong, up 2.7% after Barclays raised its rating to "overweight" from "equal-weight," with an improved target price of 7.9 euros.

** LOTTOMATICA is also in demand, up 2.6%, after J.P. Morgan raised its target price to 31 euros from 28 euros.

** Oil stocks are down, with SAIPEM and TENARIS both losing over 3%.

** Outside the main index, NEWPRINCES jumps 5.6% following the closing of the Carrefour Italia acquisition announced last night--an operation that management estimates will have a significant positive impact on the group's financials.

(Andrea Mandalà, editing by Claudia Cristoferi)