Piazza Affari extended its gains in tandem with other European stock markets following recent declines, buoyed by news that appears to rule out an immediate escalation of the conflict between Israel and Iran.

U.S. President Donald Trump stated yesterday that a decision regarding possible American involvement in the conflict would be made within two weeks, thus allowing time for potential diplomatic moves.

Around 12:00, the FTSE MIB index was up 1.2%, with trading volumes at approximately €1.1 billion.

U.S. index futures were trading uncertainly after Wall Street was closed for a holiday yesterday.

Among the standout stocks:

Azimut jumped more than 4%, driven by media speculation that Ion is considering investing in the fintech bank set to be created through an agreement between Azimut and FSI.

The financial sector overall was sharply higher, with the banking index up 2% after recent declines triggered by heightened geopolitical tensions and the resulting risk-off sentiment.

Unicredit gained 2.5%. Investor attention was drawn to the Piazza Gae Aulenti-based bank after CEO Andrea Orcel, in an interview with la Repubblica, spoke of a "probable" withdrawal of the offer for Banco BPM, while also stating that the bank would do everything possible to overcome the obstacles. "We appreciate the maintenance of a disciplined approach to M&A, given conditions that, if unresolved, would make the deal difficult to pursue," commented Equita in its daily report. Banco BPM was up 1.8%.

Elsewhere in the sector, MPS rose 3%, Intesa Sanpaolo climbed 2%, and BPER advanced 2.2%.

Utilities and the energy sector were little changed, while oil prices pulled back after strong gains in recent sessions.

(Claudia Cristoferi, editing by Sabina Suzzi)