European bourses are broadly higher, and U.S. index futures suggest the rally is set to continue on Wall Street today.
Market participants are weighing whether this move represents a temporary reprieve from the wave of selling seen since the start of the war, or a more concrete and lasting shift in sentiment.
Liquidity remains abundant, and any opportunity is being seized to re-enter the market, one trader noted.
Crude oil prices are retreating as hopes for an end to the Middle East conflict weigh on the energy complex. Brent crude futures for June delivery are trading around 103 dollars per barrel.
By 12:45 CET, the FTSE Mib index was up 2.93%, reclaiming the 45,600 level to reach its highest point in a month. Trading volumes approached 2 billion euros.
Today's market highlights:
** Banks are seeing heavy buying, with the sector index climbing approximately 4%. UNICREDIT is leading the charge with a jump of nearly 6%, while INTESA is up 3.6%. Other listed banks are posting gains of over 3%. A trader noted that expectations of interest rate hikes are supporting the sector, as lenders stand to benefit from higher net interest margins.
** NEXI remains in demand, rising 3%. BFF BANK continues its recovery, climbing 5% after a 55% collapse two days ago following the announcement that the Bank of Italy has appointed two extraordinary commissioners to temporarily assist the board in the company's restructuring.
** The oil sector is trading sharply lower, weighed down by falling crude prices. ENI is among the worst performers, shedding 2.5%. Selling pressure also hit oil services firm SAIPEM, which fell about 1%, alongside TENARIS.
** Strong gains are being recorded in the cement and construction sector, with BUZZI advancing 5.8% and WEBUILD up 5.7%.
** MAIRE is attracting bids, rising 3.5% after announcing a contract in Indonesia for its Nextchem unit. According to Equita, "the direct project contribution is limited in the short term, but the news is strategically positive."
** Broker upgrades are triggering buying in PRYSMIAN, which jumped 5% after JPMorgan raised its price target to 116 euros from 113. FERRARI climbed 2.9% after Jefferies upgraded the stock to "buy" from "hold," raising its target price to 350 euros from 310. LEONARDO is up 6%, extending early gains after Citigroup upgraded the stock to "buy" from "neutral."
** Outside the main index, NEW PRINCES fell over 11%, erasing all the gains made in recent sessions following its financial results.
(Giancarlo Navach, editing by Claudia Cristoferi)
