(Alliance News) - Major European indices are expected to open in negative territory on Wednesday, during a morning marked by the release of PMI data across key European economies and as ongoing tensions in the Middle East continue to weigh on sentiment.

The FTSE MIB is expected to open down 0.2% or approximately 115.0 points, after closing up 1.6% at 50,578.54 points, reaching new all-time highs.

Paris's CAC 40 is forecast to drop 0.4% or 29.6 points, Frankfurt's DAX 40 is expected to decline 0.3% or 82 points, while London's FTSE 100 is projected to fall 0.2% or 18.6 points.

Among Milan's secondary indices on Tuesday evening, the Mid-Cap gained 1.0% to 62,546.36, the Small-Cap rose 0.7% to 36,073.12, and Italy Growth recorded a 1.2% increase to 9,243.59 points.

In macroeconomic news, growth in Japan's private sector slowed in May as service sector firms faced mounting cost pressures linked to supply disruptions and geopolitical tensions.

The S&P Global Japan Composite Purchasing Managers' Index fell to 51.1 points in May from 52.2 in April, aligning with preliminary estimates.

Elsewhere in Asia, Chinese economic activity strengthened in May driven by a recovery in services, despite a slowdown in the manufacturing sector.

The RatingDog China General Composite Purchasing Managers' Index rose to 54.0 points in May from 53.1 in April.

On the MIB yesterday evening, Fincantieri was among the few laggards, shedding 2.7% in its third consecutive bearish session.

Selling pressure also hit Avio, which contracted by 2.9%, also marking its third straight session ending with a bearish candle.

UniCredit - up 1.6% - has reportedly gathered enough support to raise its stake in Commerzbank above the 30% threshold, bolstering its EUR38.6 billion bid for the German bank, according to Bloomberg News on Tuesday. Sources close to the matter report that shareholders have tendered enough shares to allow UniCredit to increase its direct holding from 26.8% to over 30%.

Stellantis - in the red for the fourth consecutive session with a 0.7% decline - will build 2 million cars on its new STLA One platform by 2035, CEO Antonio Filosa stated, adding that the platform will be 20% more competitive than the current architecture, Reuters reported on Tuesday. The STLA One platform, a pillar of the group's new strategy presented last month, will be launched in Spain in 2027 with the production of the new Peugeot 208.

STMicroelectronics surged over 15% to EUR68.26 per share. Jefferies reiterated its 'buy' recommendation and confirmed a price target of EUR74 after the group raised its 2026 data center-related revenue guidance to approximately USD1 billion from a previous indication of 'well over USD500 million'.

According to analysts Janardan Menon, Om Bakhda, and Isaac Dale, the new target is consistent with expectations set last week, when the bank had already upwardly revised its estimates for 2026 and 2027.

In the mid-cap segment, Sanlorenzo showed strength, gaining 6.3% after two bearish sessions.

Technoprobe climbed 5.4% to EUR34.68 per share, following a 2.4% gain the previous day. During trading, the stock hit a new 52-week high of EUR34.98.

De' Longhi - down 0.8% - continues its buyback plan. Most recently, it announced on Monday evening that between May 25 and May 29, it purchased 63,092 of its own ordinary shares for a total value of EUR2.2 million.

Philogen closed 2.6% lower, following a 1.1% decline on Monday evening, with a final price around EUR22.35.

On the Small-Cap index, Eurotech advanced over 23% to EUR1.43, reaching a new annual price peak.

Dexelance - up 4.8% - announced on Monday the conclusion of the offer period for its rights issue capital increase of up to EUR49.9 million, approved by the board on May 4. The company stated that during the offer period, which began on May 18 and ended today, 26.3 million option rights were exercised for the subscription of 32.8 million new shares, representing 99.5% of the total shares offered.

Beewize closed down 6.4% at EUR0.38 per share, retreating after three positive sessions.

SIT ended 3.7% lower at EUR2.09, following a 2.7% loss the previous day.

Among SMEs, Cyberoo gained over 11%, marking its third consecutive bullish session.

Reti advanced 4.9%, following a 13% gain at Monday's close.

Vivenda fell 5.0% to EUR0.34 per share, its third consecutive decline.

Ecosuntek dropped 5.5% to EUR3.12, following a 0.6% loss in the previous session.

In New York on Tuesday, the Dow closed up 0.5% at 51,307.79, while the Nasdaq ended with a fractional gain at 27,093.90 and the S&P 500 rose 0.1% to 7,609.78.

In Asian markets, the Hang Seng is currently down 1.7%, the Shanghai Composite is up 0.1%, while the Nikkei is trading 2.7% higher.

On the currency front, the euro is trading at USD1.1618 from USD1.1640 on Tuesday evening, while the pound is at USD1.3445 from USD1.3476 yesterday evening.

Among commodities, Brent crude is trading at USD97.66 per barrel from USD95.50 on Tuesday evening, while gold is valued at USD4,492.60 per ounce from USD4,502.90 at yesterday's close.

On Wednesday's economic calendar, Italy's Services and Composite PMI data are due at 0945 CEST. Similar data will be released for Spain, Germany, France, the Eurozone, and the UK between 0915 CEST and 1030 CEST.

At 1300 CEST, the US mortgage market report will be released, followed by ADP employment data at 1415 CEST.

At 1600 CEST, also from the US, focus will be on the Manufacturing PMI, factory orders, and durable goods.

At 2200 CEST, a speech by the Federal Reserve's Logan is scheduled.

No events are scheduled on the Piazza Affari corporate calendar.

By Claudia Cavaliere, Alliance News reporter

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