On Wall Street, futures on the main US equity indices are also trading lower as investors assess the outlook for crude oil prices and look ahead to the crucial inflation data due in the early afternoon, against the backdrop of an escalating conflict in the Middle East.
Meanwhile, crude oil prices have climbed once again after a brief dip following a WSJ report stating that the International Energy Agency has proposed the largest release of oil reserves in its history.
As of 12:45 PM, the Milanese Ftse Mib index is down 0.90%. Trading volumes stand at 1.4 billion euros.
Today's featured stocks
** Banks remain the focus of investor attention, with the sector index down 0.4%, dragged lower by declines in heavyweights UNICREDIT, which is down 1.3%, and INTESA, down approximately 0.4%.
** MEDIOBANCA jumps 3.4% to 16.70 euros, while its parent company MPS gains 1.7% to 7.52 euros after the boards of both institutions approved the merger plan for the incorporation of Mediobanca into Mps, with an exchange ratio of 2.45 Mps shares for every Mediobanca share. The exchange ratio accounts for the 2025 dividend distribution and represents a 3% premium based on yesterday's closing prices. According to Intermonte, "the exchange ratio is at a slight premium compared to yesterday's closing prices and slightly higher than our estimated exchange ratio of 2.386 euros ex-dividend."
** The correction is widening for LEONARDO, down 3%, and FINCANTIERI, down 2.7%; DANIELI is also lower, retreating by 1.7%.
** Utilities are being sold off, with ENEL shedding 1.3% and A2A losing 0.2%. ASCOPIAVE drops 3.1% after Kepler Cheuvreux cut its rating to 'hold' from 'buy', with a target price of 4.2 euros from 4.1.
** CAREL INDUSTRIES surges 5.4% after Kepler Cheuvreux upgraded its recommendation to 'buy' from 'hold' and raised the target price to 27.6 euros from the previous 24 euros.
(Giancarlo Navach, editing Antonella Cinelli)
