Positive start for Piazza Affari, rising for the third consecutive session, driven by banking consolidation moves, although the sector is catching its breath today following the recent rally.

Uncertainty prevails across markets after the latest escalation of tensions in the Middle East, but investors hope that new US strikes against Iran, following the downing of an Apache helicopter near the Strait of Hormuz, will not jeopardize a potential peace agreement to end the conflict.

Despite these attacks, Brent crude prices remain well below 100 dollars per barrel.

On the macro front, the spotlight is on US inflation data due this afternoon to assess the impact of the war; according to a Reuters poll of economists, May consumer prices are expected to have grown at their fastest pace in three years.

The result could bolster expectations of a rate hike by the Federal Reserve, especially following last week's better-than-expected May non-farm payrolls data.

As of 9:40 CET, the Ftse Mib is up 0.74%.

The banking index is rising by 0.9%, with the protagonists of the latest corporate action announced last Sunday trading more quietly today: INTESA, which announced an exchange offer to acquire MPS, opened weak but is now up 0.3%. The Sienese bank's stock continues its run today, jumping approximately 1.5% to new highs since July 2022 at 10.65 euros. Its subsidiary MEDIOBANCA is also rallying, up 1.2% to new all-time highs at 25.54 euros.

UNIPOL also shows good momentum, gaining 0.8% after its recent rally, while its affiliate BPER remains flat as the market weighs the expected benefits of the Mps transaction.

Buying interest is also seen in BANCO BPM (+1%) and UNICREDIT (+1.4%).

Elsewhere in the blue-chip index, STM jumped 2.2% following an upgrade by BofA to 'buy' from 'neutral' and a target price increase to 86 euros, forecasting a significant profit turnaround for the Franco-Italian chipmaker.

Finally, CEMENTIR continues its surge, rising 4% after yesterday's 4.7% jump following the announcement that its Danish subsidiary Aalborg Portland signed a 2.2 billion euro agreement with the Danish Energy Agency for subsidies related to a carbon capture and storage (CCS) project.

(Giancarlo Navach, editing Stefano Bernabei)