The anticipation surrounding today's talks between senior representatives from the US and China on trade policies is stifling activity at Piazza Affari.

There is hope for an agreement on export controls, including those related to rare earth elements, which could pose risks to global supply chains and potentially slow economic growth.

US index futures are also flat, signaling a subdued start for Wall Street this afternoon. Investors are also awaiting tomorrow's key inflation data.

A trader noted that market movements are additionally influenced by upcoming technical deadlines in two Fridays and the approaching close of the half-year.

Around 12:50 pm, the Ftse Mib index was down 0.20%. Trading volumes remained relatively low at 1 billion euros.

Stocks in Focus Today

Stellantis drew strong buying interest, extending its rally to +3.6%--the third consecutive positive session--partially recovering from a roughly 28% year-to-date decline.

Diasorin also performed well, up 1%, bolstered by news that the US FDA has approved the Liaison Plex Gram-Positive Blood Culture Assay, the latest multiplex molecular testing panel for diagnosing bloodstream infections.

Banks remained out of favor, with heavyweights UniCredit and Intesa Sanpaolo both down about 1.3%. Bper fared notably worse, dropping 2.10%, while Banco Bpm slipped 1.6% and Banca Pop Sondrio retreated by 2.2%.

Leonardo fell sharply, down 2.7% for the third consecutive day of declines. The drop reflects clear profit-taking on a stock that has gained 97% since the start of the year, fueled by increased investment in the European defense sector.

The rebound in crude oil prices, driven by expectations for the outcome of US-China talks, lifted the oil sector: Saipem jumped over 2%, and ENI climbed 1.2%.

Finally, Safilo rose 2% following the announcement of an agreement with Kering Eyewear for the sale of Lenti, a company founded in 1996 in the province of Bergamo that manufactures lenses for sunglasses and extra-optical products.

(Giancarlo Navach, editing by Gianluca Semeraro)