Piazza Affari retraces on physiological profit-taking after seven consecutive positive sessions and after archiving last week with a 4 percent gain.

The first session of the week opened amid moderate optimism in equity markets in the wake of the promise of more accommodative monetary and fiscal policies in 2025 in China.

Little impact on equity markets from geopolitical risks after the fall of President Bashar al-Assad in Syria.

Catalyzing traders' attention are banking M&A developments in Italy on a bare day on the macro front. Anticipation is for Wednesday's U.S. inflation figure, which will close the circle of macroeconomic readings that may direct the Fed to cut rates at its next meeting on Dec. 18, and the ECB meeting on Thursday.

Very few cues come from the performance of U.S. futures, which are little moved.

In Milan, around 1:15 p.m., the Ftse Mib gives up 0.2 percent. Volumes barely above 1 billion.

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Banco Bpm rises 2 percent continuing its rally after Credit Agricole's potential increase in its stake in the institution riles the market around Italian banking M&A, complicating UniCredit's plans, which gives up 0.8 percent.

The takeover bid launched by UniCredit on Banco Bpm is intertwined with the offer the latter announced a few weeks earlier on Anima, which continues to travel above the 6.2 euro price proposed by Piazza Meda (6.43 euro, -0.16%)

Optimism over Chinese stimulus policies support buying in the luxury sector with Moncler up +3%, Cucinelli +2.4% while Ferragamo jumps 6.4%.

Among the best stocks in the Ftse Mib Tenaris gains about 2% on the back of Jefferies' promotion to 'buy' with a target price revised upward to 22 euros.

The announcement on Chinese stimulus and rising tensions in the Middle East support crude oil prices from which the entire oil sector benefits. Saipem rises 0.8 percent and Eni 1 percent despite incoming news about this morning's explosion at a plant of the major in Calenzano, near Florence.

Weighing down the Milan stock market are utilities and industrial stocks. Among the former Hera, Italgas, A2A and Terna lose between 0.9 and 1.2 percent.

Among industrials Leonardo gives up 3 percent, Prysmian over 2 percent and Iveco 2.1 percent after Deutsche Bank cut its recommendation on the commercial vehicle maker to 'hold'.

Among minors Juventus loses 3.3% after its third league draw in a row. Mittel jumps 6.7% aligning with the price of the takeover bid launched by controlling shareholders to delist the company at €1.75 per share.

(Andrea Mandalà, editing Stefano Bernabei)