Negative start in Piazza Affari, which, like other European stock markets, continues the retracement from recent highs initiated in the latter part of Friday's session after strong December U.S. employment data reduced the likelihood of the Fed cutting rates in the short term.

Indeed, low unemployment and rising wages imply that the economy does not need further stimulus, and still high rates put pressure on high valuations on equities, making bonds a more attractive alternative to stocks, explains Gamma Capital Markets.

The most anticipated macro event of the week, in terms of future Fed rate decisions, is Wednesday's U.S. inflation figure, while in the euro area no particularly relevant statistics are expected, with final December inflation numbers (Friday) and German 2024 GDP (Wednesday) expected to confirm contraction.

The week will also see the start of the quarterly earnings season with results from major U.S. banks, starting on Wednesday with Citigroup, Jpm and Goldman Sachs, followed on Thursday by BofA and Morgan Stanley.

Around 9:35 a.m., the Ftse Mib gives up 0.5 percent.

The biggest losses are on technology and industrial stocks, the main sectors suffering from still high rates, along with utilities on which competition offered by rising yields on bonds is weighing.

In this picture, Stm is at the bottom of the Ftse Mib, down 3.6 percent, with Banca Akros reducing its target price to 27 from 28 euros while confirming its neutral rating due to poor visibility on recovery in the second half of 2025, while Ferrari, Leonardo, Stellantis and Interpump are down between 1 and 1.7 percent.

Among utilities A2a, Hera, and Enel mark declines of around half a percent.

In contrast, oil stocks are positive, buoyed by fresh gains in crude oil prices on expectations that U.S. sanctions against Moscow introduced Friday will affect Russian crude exports to major buyers, China and India. Eni rises 1.2, Saipem 0.15.

At the top of the Ftse Mib, Telecom Italia accelerates and rises about 1.5 percent, while a judge's ruling on the legal dispute brought by Vivendi against the way Tim's board approved the sale of NetCo is expected today.

(Andrea Mandalà, editing Claudia Cristoferi)