Despite persistent uncertainty and the approaching deadline for the truce tomorrow evening (US time), trading is being conducted in a more relaxed atmosphere with contained volatility across both European markets and Wall Street, where futures are posting modest gains.
Confidence that negotiations may take place is also reflected in the retracement of crude oil prices, whose movements have now become the primary driver for the markets.
By 12:25 PM, the FTSE Mib was up 0.34%. Trading volumes at Piazza Affari remain light, with turnover at 1.1 billion euros.
Stock Highlights:
** At the top of the FTSE Mib, AVIO stands out with a 4.5% gain, bolstered by positive sentiment from Jefferies. The broker considers the stock among the most attractive in the European defense and space sector, particularly in light of the conflict with Iran and the shifting geopolitical landscape. Jefferies raised its price target to 43.50 euros from 41.5 euros, maintaining a "buy" rating.
** Conversely, Jefferies downgraded LEONARDO to "hold" from "buy," cutting the price target to 62 euros from 68 euros following the stock's strong recent performance; shares are currently down 2.4%.
** Optimism regarding a resolution to the conflict is encouraging tentative buying in cyclical stocks. In the automotive sector, STELLANTIS is up 2%, while in luxury—a sector highly sensitive to Middle Eastern tensions—MONCLER has gained 1.2% and FERRAGAMO is up 1.8%.
** The decline in oil prices is weighing on the energy sector, with SAIPEM shedding over 2%. ENI, however, is holding just above parity, supported by yesterday's reports regarding ongoing negotiations alongside Repsol with the Venezuelan government to obtain export authorization for LNG from the Cardon IV field.
** Utilities are performing better, with ENEL and HERA rising approximately 1%, while SNAM and TERNA are up 0.5%.
** Among banks, MPS rose 1.4% against a modest 0.1% gain in the banking sector index, after Goldman Sachs raised its price target on the Sienese lender to 11.6 euros from 10.1 euros.
** UNICREDIT is little changed as analysts digest the scenarios and financial estimates presented yesterday by CEO Andrea Orcel in support of the Commerzbank transaction. Equita continues to believe that, given the friction with the German bank's management and political opposition, the most likely scenario remains UniCredit exceeding the 30% threshold without achieving full control.
** In a session with few catalysts, notable among small caps is the roughly 12% jump for agro-industrial group BF. The stock is approaching the price of the tender offer launched jointly by shareholders Arum (CEO Federico Vecchioni's holding company) and Dompé Holding at 5 euros per share, though the offer does not aim for delisting.
(Andrea Mandalà, editing Claudia Cristoferi)
