Mixed finish for European markets as US stocks pare gains

(Alliance News) - Major European markets closed on a mixed note Tuesday, even as US President Donald Trump attempted to signal a de-escalation in the Middle East, citing 'very positive developments' regarding the region's most pressing issues.

Meanwhile, the Italian government has requested that Brussels extend the safeguard clause, already in place for defense, to cover extraordinary spending aimed at combating high energy costs. In a letter to Ursula von der Leyen, Giorgia Meloni argued that energy security should hold the same priority as military security, particularly in light of tensions in the Strait of Hormuz.

Against this backdrop, the MIB ended trading down 0.7% at 48,354.89 points, the Mid-Cap fell 0.8% to 59,976.65, the Small-Cap dropped 0.9% to 34,034.39, and Italy Growth slipped 0.3% to 8,801.22 points.

Other European bourses saw a varied performance: the FTSE 100 finished in the green, up 0.1%, while the CAC 40 shed 0.1% and the DAX 40 rose 0.5%.

'European equity indices started the day with momentum, consolidating Monday's solid gains on hopes of a de-escalation in the Middle East, but were dragged lower by their US counterparts,' said Axel Rudolph of IG.

US markets, he added, 'came under pressure after the 10-year US Treasury yield reached a 16-month high and the 30-year yield hit levels not seen since July 2007.'

Furthermore, the analyst noted, 'high energy prices, rising inflation, and a robust economic environment have increased expectations of a Fed rate hike this year, exerting pressure on equity markets.'

'Yields have risen globally, with Japanese borrowing costs hitting historic highs and long-term UK bond yields approaching 1998 levels,' Axel Rudolph concluded.

On the MIB, Stellantis - which saw a daily decline of 0.7% - launched the E-Car project, a compact and affordable electric vehicle. The first E-Cars are expected to roll off production lines in 2028.

UniCredit, which recorded a 1.4% decline, will remain absent from the Commerzbank shareholders' meeting scheduled for Wednesday, having chosen not to deposit the shares it holds in the German institution. The move by the group led by Andrea Orcel does not surprise the market, following repeated indications from the manager regarding his intention not to interfere, at this stage, in the German bank's governance.

Simultaneously, Commerzbank's top management formally rejected UniCredit's offer, judging it to be lacking an adequate premium and a credible strategic plan.

Leonardo - up 2.0% at the close - will launch a share buyback program in the coming days, authorized for a maximum of 2.0 million ordinary shares over a period of up to 18 months.

Avio, which topped the list with a 4.1% gain to EUR31.25 per share, successfully launched the 'Smile' (Solar wind Magnetosphere Ionosphere Link Explorer) scientific satellite for the European Space Agency and the Chinese Academy of Sciences from the European Spaceport in French Guiana using a Vega C launcher.

As with the Gaza reconstruction plan, Prime Minister Giorgia Meloni is looking to Italy's major state-backed companies to support Qatar in restoring Ras Laffan, a strategic hub for liquefied natural gas exports damaged by Iranian attacks on March 19.

The Prime Minister's office has proposed support from Eni, Snam, Terna, and Saipem with a dual objective: securing new long-term contracts for Italian companies and contributing to the restoration of LNG supplies from Doha, which previously covered about a third of Italian imports.

Terna shares closed up 0.5%, Snam rose 0.4%, while Saipem fell 3.2% and Eni slipped 0.6%.

Prysmian ended the session up 5.0% at EUR140.50 per share.

On the Mid-Cap, Ferretti - down 5.1% at the bell - reported a first-quarter profit decline to EUR23.9 million from EUR21.0 million in the same period of 2025, a 12% drop.

Pirelli's Cyber Tyre - with daily sales down 1.3% - aims to transform the tire from a simple mechanical component into an intelligent system integrated into connected mobility. The technology, developed over 20 years of research, uses sensors and proprietary software to collect and process data for assisted and autonomous driving, predictive maintenance, and infrastructure monitoring.

Caltagirone, down 1.1%, announced that Francesco Gaetano Caltagirone has been confirmed as chairman, while Azzurra Caltagirone was confirmed as vice-chairman.

Reply, meanwhile, gained 4.7% to EUR103.60 per share, leading the index.

On the Small-Cap, BasicNet - down 1.8% at the end of the session - announced that K-Way opened a new store on May 15 in the heart of London, at 26-27 Carnaby Street in Soho. This marks the brand's first store in the West End.

The board of directors of EuroGroup Laminations, which fell 2.3%, approved first-quarter results, closing with a net loss of EUR3.1 million compared to a loss of EUR2.1 million in the same period of 2025.

Cy4Gate showed a negative sign, down 6.8% at EUR8.55, while SYS-DAT took the lead with a 12% jump to EUR5.50 per share.

Among SMEs, Next Geosolutions, up 2.3%, announced it had been awarded a contract by TenneT TSO BV totaling approximately EUR9 million.

Green Oleo, with potential gains of 4.8%, closed the first quarter with a production value of EUR18.6 million, down from EUR20.8 million as of March 31, 2025.

gAIn360, which saw no trading, approved the establishment of its Canadian subsidiary gAIn360 Inc, a 100%-owned entity, as part of the group's international expansion strategy focusing on the US and Canadian markets.

RES - Recupero Etico Sostenibile secured a EUR4 million loan from MIMIT under the 'Sustainable Investments 4.0' program for the construction of a pyro-gasification plant designed to convert non-recyclable dry organic waste into certified syngas. The stock gained 2.5% to EUR7.28 per share.

In New York, the Dow Jones is down 0.5%, the Nasdaq 1.1%, and the S&P 500 0.8%.

On the currency front, the euro is trading at USD1.1597 from USD1.1639 on Monday evening, while the pound trades at USD1.3397 from USD1.3365 on Monday.

Among commodities, Brent crude is trading at USD110.54 per barrel from USD110.57 per barrel on Monday evening, while gold is worth USD4,501.17 an ounce from USD4,534.00 an ounce at yesterday's close.

On Wednesday's economic calendar, German and British producer price data are expected at 0800 CEST, while the UK house price index is due at 1030 CEST.

From 1300 CEST, the focus shifts to the US with mortgage reports, and at 1630 CEST, figures for US heating oil and gasoline inventories will be released. At 2000 CEST, the FOMC minutes will be made public.

On Piazza Affari, quarterly results are expected from Generali, Diadema, eVISO, and OPS Italia.

By Michele Cirulli, Alliance News reporter

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