The session at Piazza Affari remains flat, with investors uncertain about how to proceed in the equity market as they await clarity on the outcome of U.S.-China tariff talks and the upcoming U.S. inflation data, scheduled for early afternoon.

Overnight, two days of talks in London between Beijing and Washington concluded, resulting in a 'framework agreement' aimed at reinstating a trade truce. The primary focus is on lifting Chinese restrictions on rare earth exports, but details remain scarce, highlighting persistent differences between the parties.

On the macroeconomic front, all eyes are on the U.S. inflation update for May. Consensus forecasts point to a mild acceleration in the 'core' rate year-on-year, expected to rise to 2.9% from 2.8% the previous month, while the headline index is seen climbing to 2.5% from 2.3%. Figures above expectations would, of course, dampen bets on Federal Reserve rate cuts.

Around 12:40 p.m., the FTSE Mib index was up a marginal 0.15%, with trading volumes hovering around one billion euros.

Stocks in focus today:

Banks have slightly changed direction, with the sector index up 0.3%: UniCredit gains 0.6%, while Banco BPM slips 0.2%. UniCredit CEO Andrea Orcel said this morning that the chances of completing the public exchange offer for Banco BPM are now at 20% or lower. BPER and MPS were also sold, both down around 1%.

Leonardo is making a modest recovery, up 0.55% after three consecutive sessions of heavy selling.

In the defense sector, Fincantieri is rebounding, jumping 2.5%.

The oil segment is retracing, with Saipem and Tenaris both down 0.8%, while Eni remains unchanged.

Nexi is under clear pressure, falling 1.8%, affected by the sharp decline in French fintech rival Worldline, which is down 2.75% in Paris.

Outside the main index, Technoprobe drops 4.4%, aligning with the ABB price at 7 euros for 1.53% of the capital (a 6.9% discount to yesterday's closing price). Equita notes that "the timing of the operation is somewhat surprising."

Aeffe stands out, surging 7.7% on speculation about shareholder movements.

(Reporting by Giancarlo Navach, editing by Andrea Mandalà)