(Alliance News) - Major European markets closed in negative territory on Tuesday, with Milan being no exception following its recent all-time highs, while London was the sole exchange to end the session in the green.

The FTSE MIB thus corrected slightly below the 50,000-point mark, amid growing risk aversion linked to the deteriorating geopolitical situation in the Middle East. Initial optimism regarding a potential deal between the US and Iran was tempered by a slowdown in negotiations, which sustained and reintroduced upward pressure on oil prices.

On the monetary front, the restrictive tone of central banks continued to weigh on market sentiment. Isabel Schnabel reiterated the need for the ECB to maintain a hawkish approach, highlighting the persistence of the energy shock and reinforcing expectations for further rate hikes in the coming months.

Money markets are now pricing in a high probability of a rate hike in June, with approximately 60 cumulative basis points expected by year-end.

Consequently, the MIB shed 0.6% to 49,899.22 points, the Mid-Cap dropped 0.6% to 61,985.26 points, the Small-Cap advanced 0.9% to 35,293.43 points, while Italy Growth edged up 0.2% to 8,978.20 points.

London's FTSE 100 closed up 0.2%, Paris's CAC 40 fell 1.0%, while Frankfurt's DAX 40 retreated 0.8%.

Ferrari closed down 8.4%. As Francesco Bonazzi writes for Alliance News, 'Piazza Affari struck down the debut of 'Luce', the electric Ferrari, causing the Prancing Horse stock to plummet. This reaction is not entirely unexpected, given that in October last year, when Chairman John Elkann confirmed the launch of the first electric Ferrari to analysts, the stock lost 15% in a single session'.

'In reality, the financial market had already made it very clear that it did not favor an all-electric Ferrari. On October 9, Chairman John Elkann announced the confirmation of the 'battery-powered' project to analysts, and Ferrari unveiled its strategic plan, targeting EUR9 billion in revenue by 2030 with EUR4.7 billion in investments over five years, showing some details of its first electric vehicle, the most anticipated novelty', the columnist explains in his 'Affari in Piazza' column on Alliance News.

Brunello Cucinelli, meanwhile, left 3.5% on the floor at EUR81.06 per share. Notably, on Monday, Boldhaven Management initiated a 0.50% short position on the stock.

Poste Italiane closed in the green by 0.3%. The company has no intention of increasing its offer price for Telecom Italia, which finished the session up 0.2%.

This was reported Tuesday by Reuters, citing remarks by the company's General Manager, Giuseppe Lasco, on the sidelines of the annual meeting of Confindustria, the business lobby, held in Rome. Poste Italiane, TIM's largest shareholder since last year, launched an EUR11.00 billion takeover bid in March with the aim of creating a national pillar in the digital sector.

Leonardo - up 1.2% - announced on Tuesday that ITPS Canada has ordered six 'M-346 T Block 20' aircraft, with options for an additional six units, to bolster advanced fighter pilot training for NATO and allied nations at the International Tactical Training Centre in North Bay, Ontario. The aircraft are expected to enter service starting in 2029.

In the Mid-Cap segment, Cembre pushed its price up 1.6%, following a 1.4% decline in the previous session.

Strength was also seen in Fiera Milano, which ended the run with a bullish candle of 1.4%, following a 4.5% gain the day before.

El.En. closed up 1.1% at EUR14.90 per share. Berenberg confirmed its 'buy' recommendation on the stock, raising the target price to EUR16.00 from EUR13.30, following quarterly results that analysts deemed mixed but with positive signals in the medical business.

In the report signed by Giovanni Selvetti, the bank emphasizes that management's strategy to focus on higher-growth and higher-profitability activities 'is beginning to bear fruit'.

Buybacks continue for De' Longhi, which finished down 0.9%. In this regard, it announced late Monday that between May 18 and 22, it purchased 51,907 of its own ordinary shares for a total value of EUR1.8 million.

On the Small-Cap index, EuroGroup Laminations shed over 12%, following a 16% gain the previous day, with a final price of EUR1.13 per share. Berenberg maintains a cautious view on the stock, confirming a 'hold' recommendation and a target price of EUR1.20. Analyst Giovanni Selvetti notes that the group is trying to 'navigate turbulent times', with the business penalized primarily by the slowdown in the US EV market following the expiration of federal tax incentives.

Caleffi - down 1.3% - announced Tuesday the renewal of the worldwide exclusive licensing agreement between Mirabello Carrara, the group's luxury division, and Diesel, the international lifestyle brand of the OTB Group, for the DIESEL Living line.

FILA - down 0.5% - announced Tuesday that it purchased 91,514 of its own ordinary shares between May 18 and 22 at an average price of EUR8.3529 each, for a total value of EUR764,000.

Trevi Finanziaria Industriale - down 0.2% - announced it has completed the share consolidation approved by the extraordinary shareholders' meeting on May 13, proceeding, after canceling 12 shares for balancing purposes, to consolidate approximately 312.3 million existing ordinary shares into 15.6 million new ordinary shares. The transaction took place at a ratio of one new share for every 20 existing shares.

TXT e-solutions - up 0.7% - announced Tuesday that it is leading the coordination of an EUR28.0 million project funded by the European Defence Fund, bringing together major industrial players from the European aerospace, defense, and digital engineering sectors 'to develop new interoperable digital architectures for future defense systems'.

Among SMEs, Cofle finished with a gain of over 12%. The board approved the 2025 accounts, which closed with a loss of EUR9.3 million, widening from the EUR5.6 million loss recorded in fiscal year 2024. Net financial debt stands at EUR11.8 million, an improvement from EUR13.9 million in 2024.

Mevim - down 9.4% - announced Monday that it closed 2025 with a consolidated net loss of EUR774,000, an improvement over the EUR1.9 million loss in 2024. Revenue from sales and services fell to EUR2.4 million from EUR5.6 million, while the value of production decreased to EUR3.3 million from EUR5.8 million.

Monnalisa, meanwhile, shed 4.8%, pricing at EUR0.60, a new 52-week low.

Planetel left 3.2% on the floor after two bearish sessions, with a closing price around EUR3.58 per share.

In New York, the Dow is down 0.2%, the S&P is up 0.6%, while the Nasdaq is advancing 1.0%.

On the currency front, the euro is trading at USD1.1618 from USD1.1645 on Monday evening, while the pound is trading at USD1.3438 from USD1.3501 on Monday evening.

Among commodities, Brent is trading at USD100.30 per barrel from USD97.60 on Monday evening, while gold is worth USD4,507.56 per ounce from USD4,572.45 at Monday's close.

Wednesday's economic calendar includes Italian car registration data at 0600 CEST, followed by 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 corporate calendar, results from OPS eCom and Tenax International are expected.

By Maurizio Carta, Alliance News reporter

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