The FTSE MIB edged up to around 52,500 on Friday, modestly extending gains from the previous session as investors continued to monitor developments in the Middle East. A pullback in oil prices after this week's sharp rally improved sentiment amid reports that the US and Iran would continue diplomatic negotiations.
Financials led the gains, with Intesa Sanpaolo (+1.1%), Mediobanca (+1.3%), Banca Monte dei Paschi di Siena (+0.7%), and Banco BPM (+0.7%) advancing.
Automakers also moved higher, with Ferrari and Stellantis rising 1.2% and 1.3%, respectively.
Italgas added 0.2% after Moody's Ratings revised its outlook on the company to positive from stable.
Meanwhile, technology stocks underperformed, with STMicroelectronics (-0.4%) and Prysmian (-0.6%) trading lower as investors awaited the US market debut of South Korean chipmaker SK Hynix.
For the week, the benchmark index is heading for a modest decline.