(Alliance News) - European stock markets moved in mixed territory on Wednesday, with London the sole decliner, as markets continue to hold out hope for a diplomatic resolution between the US and Iran despite ongoing tensions in the Middle East.

The recent rally in crude prices has not prevented a softening in global bond yields, while equity markets have refreshed all-time highs, driven primarily by the tech sector's momentum and the prevailing enthusiasm for artificial intelligence.

On the monetary front, ECB guidance remains under close scrutiny. The Governor of the Banque de France reaffirmed that the central bank 'will do whatever is necessary' to return inflation to its 2% target, while Isabel Schnabel argued for the necessity of a rate hike in June, even in the event of a rapid easing of geopolitical tensions.

Consequently, the FTSE MIB rose 0.3% to 50,038.46 points, the Mid-Cap advanced 0.4% to 62,207.80 points, the Small-Cap gained 0.7% to 35,525.19 points, while the Italia Growth was up 0.1% at 8,987.91 points.

London's FTSE 100 is down 0.1%, the Paris CAC 40 is up 0.4%, while the Frankfurt DAX 40 is trading 0.5% higher.

Returning to Milan, on Piazza Affari's blue-chip index, luxury stocks climbed to the top at the open, with Brunello Cucinelli rising 3.2% and Moncler gaining 3.1%.

Buying interest also extended to Stellantis, which advanced 2.7%. The group's sales saw an increase in Europe in April, tracking the broader market trend, which saw registrations grow by 5.1% year-on-year.

According to data published Wednesday by ACEA, the group formed by the merger of PSA Group and Fiat Chrysler Automobiles reported a 5.5% increase compared to April 2025, with its market share rising to 17.1% from 16.5% in April 2025.

Poste Italiane presented its approximately EUR10.8 billion exchange offer (OPS), announced on March 22, to the board of Telecom Italia. Regulatory approval for the prospectus from the Bank of Italy and Consob is expected by the end of July.

CEO Matteo Del Fante outlined the industrial project aimed at creating a national integrated platform across telecommunications, digital services, finance, and logistics, with the goal of strengthening the new group's infrastructural role in the Italian economy.

Poste Italiane shed 0.1%, while TIM edged up 0.1%.

MPS advanced 1.0%. Luigi Lovaglio is strengthening Banca Monte dei Paschi di Siena's role in Italian banking consolidation following his reappointment at the helm of the Sienese lender.

Speaking at the Uilca congress in Venice, the CEO stated that the bank is 'well-equipped for the future' and that 'all roads now lead to Siena', as the market continues to speculate on potential developments involving Banco BPM and other industry players.

Conversely, Eni sat at the bottom of the main index, falling 1.9%. The 'six-legged dog' group is accelerating its Southeast Asian expansion with the creation of Searah, an upstream joint venture developed alongside Petronas to leverage gas reserves between Malaysia and Indonesia.

The new company, headquartered at Eni House in London, stems from the Investment Agreement signed in November 2025 and focuses on the development and extraction of natural gas in a region considered strategic for growing Asian demand.

The operation is underpinned by a USD15 billion financial structure supported by a pool of international banks and a portfolio of resources and reserves totaling approximately 3 billion barrels of oil equivalent.

On the Mid-Cap, BFF Bank performed well, advancing 5.7%. The bank's dossier is gaining momentum and could attract initial bids by the summer from specialized banks and investment funds interested in the Milanese institution, which focuses on factoring for public administrations.

Advisors Mediobanca and Morgan Stanley have initiated market soundings to identify a potential partner, while the derisking plan and a major EUR1.2 billion securitization proceed, as reported Wednesday by MF-Milano Finanza.

Ferretti showed strength, rising 0.9%. Stassi Anastassov is imprinting his vision on the group's future following his appointment as CEO.

In a letter to employees, Anastassov emphasized that 'every great company must evolve because heritage without innovation becomes nostalgia', reaffirming the commitment to 'maintaining the company's Italian soul'.

Banco di Desio e della Brianza - up 1.1% - announced Tuesday that its board of directors resolved to launch the share buyback program authorized by the shareholders' meeting, effective June 1.

The program involves the purchase of a maximum amount equal to 3% of the share capital, corresponding to 3.9 million treasury shares, for a total maximum value of EUR40 million.

Credito Emiliano also saw gains, progressing 0.5%. The bank announced Tuesday that it had completed a EUR500 million green bond issuance aimed at institutional and professional investors, with orders exceeding EUR1.15 billion and a six-year maturity, bolstering the group's ESG strategy under its 2026 EMTN program.

At the bottom of the mid-cap index was WIIT, falling 1.5%.

On the Small-Cap, Italian Sea Group outperformed at the start, advancing 8.3%. The company has convened a shareholders' meeting for July 22 to examine necessary measures following a capital reduction below legal minimums, a consequence of heavy losses impacting the Marina di Carrara-based nautical group.

Aeffe saw buying interest - up 0.3% - as it accelerates its turnaround path, filing a petition with the Court of Bologna for authorization to contract super-priority financing within the framework of its negotiated crisis settlement.

The company has requested approval for a bullet loan of up to EUR20 million granted by illimity Bank, with a maximum duration of 18 months and two days, at a cost of three-month Euribor (zero floor) plus a 12% margin.

BF received a bullish push, rising 0.4%. Arum and Dompé Holdings announced that Consob has approved the document relating to the mandatory total tender offer launched for BF ordinary shares.

The acceptance period, agreed with Borsa Italiana, will run from June 8 to July 3. The consideration is set at EUR5.00 per share, with payment scheduled for July 10.

TXT e-solutions - down 0.1% - announced Tuesday that it is leading the coordination of a EUR28.0 million project funded by the European Defence Fund, bringing together major European aerospace, defense, and digital engineering players 'to develop new interoperable digital architectures for future defense systems'.

Among SMEs with the highest turnover, Officina Stellare rose 3.8%, while First Capital fell 0.9%.

expert.ai - up 0.7% - announced that it closed 2025 with a consolidated net loss of EUR5.7 million, an improvement over the EUR10.1 million loss in 2024.

Total revenues rose to EUR42.7 million from EUR27.3 million the previous year, while the value of production increased to EUR47.8 million from EUR32.4 million.

ESI - up 5.2% - announced Tuesday that a binding agreement was signed with Innovatec - up 11% - for the merger by incorporation of ESI into Innovatec, aiming to create a new integrated group in the energy transition and renewables sector.

The transaction will be initiated by a rights issue at Innovatec of nearly EUR8.0 million.

In New York on Tuesday evening, the Dow lost 0.2%, the Nasdaq advanced 1.2%, while the S&P 500 rose 0.6%.

In Asia, the Nikkei closed up 0.1%, the Hang Seng fell 1.1%, while the Shanghai Composite ended 1.3% lower.

On the currency front, the euro is trading at USD1.1643 from USD1.1618 on Tuesday evening, while the pound is at USD1.3450 from USD1.3438 on Tuesday evening.

Among commodities, Brent is trading at USD94.51 per barrel from USD100.30 on Tuesday evening, while gold is valued at USD4,484.26 per ounce from USD4,507.56 at Tuesday's close.

Wednesday's economic calendar includes Italian industrial sales data at 1000 CEST.

At 1300 CEST, US 30-year mortgage rate data is due, while weekly oil inventories are expected at 2230 CEST.

On the Piazza Affari corporate calendar, results from OPS eCom and Tenax International are expected.

By Antonio Di Giorgio, Alliance News reporter

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