(Alliance News) - At the Tuesday midday mark, Europe's major stock exchanges continue to trade without a unified direction, with Piazza Affari retreating while remaining in the 50,000-point range, and London advancing above the previous session's close.

The STOXX 50 is down 0.9% while the STOXX 600 moves below the parity line, after both indices hit fresh highs on Monday prior to the escalation in the Middle East.

Markets are back under pressure following the reignition of tensions between the US and Iran. Hopes for a nuclear deal and the reopening of the Strait of Hormuz quickly cooled following statements from Tehran, which ruled out an imminent agreement and threatened to halt negotiations.

Tensions further escalated following strikes conducted by US and Israeli jets against Iranian vessels in the Strait of Hormuz and other strategic targets. US forces described the operations as 'self-defense actions', occurring just hours after President Donald Trump had spoken of progress in talks with Tehran regarding a possible interim deal.

US crude has returned above the USD95 per barrel mark, fueling fresh inflationary fears and pushing global bond yields higher.

Consequently, the FTSE Mib is down 0.4% at 50,022.96 points, the Mid-Cap sheds 0.5% to 62,079.74 points, the Small-Cap advances 0.5% to 35,180.67 points, while Italy Growth edges down 0.04% to 8,959.64 points.

London's FTSE 100 is in the green by 0.6%, Paris's CAC 40 is down 0.9%, while Frankfurt's DAX 40 retreats 0.6%.

Returning to Milan, on Piazza Affari's blue-chip list, Ferrari remains at the bottom, shedding 6.2%. The Prancing Horse company unveiled 'Luce', the first fully electric vehicle in the group's history, opening a new strategic phase for the Maranello-based manufacturer. The model, with a starting price of EUR550,000 and exceeding EUR700,000 with customizations, represents a breakthrough in both styling and technology.

Amplifon advances 2.1%, extending gains after Monday's 3.9% rise.

STMicroelectronics touched a new 52-week high at EUR59.14 per share and is up 1.3%. BofA raised its price target on STM to EUR63.00 from EUR49.00, confirming its 'neutral' rating.

Buying interest also hit Saipem and Tenaris, both up 1.5%, supported by the recovery in Brent crude.

Eni rebounds marginally after the previous day's decline. The 'six-legged dog' group announced that, together with partners Petroci and Vitol, it has approved the final investment decision for phase three of the Baleine project, 'marking a significant step in the development of the largest hydrocarbon field ever discovered' in Ivory Coast.

The development of the phase three full field will bring oil production from 60,000 to 150,000 barrels per day and gas production from 80 to 200 million cubic feet per day, equivalent to 2.3 and 5.7 million cubic meters per day.

MPS and Mediobanca continue to trade in negative territory, down 0.3%. The integration of Piazzetta Cuccia into the Sienese bank enters its second operational phase after the initial months dedicated to defining the new corporate structure, reorganizing operational functions, and managing governance tensions.

CEO Luigi Lovaglio, strengthened by his confirmation at the shareholders' meeting following the clash with the previous board, has launched the executive phase of the plan, directly involving the group's structures, platforms, and central functions.

According to MPS's quarterly report, the process is being managed through eight 'integration workstreams' dedicated to key operational areas and tasked with coordinating over 50 projects monitored on a weekly basis.

Unipol drops 0.2% to EUR21.82 per share. Barclays raised its price target on the stock to EUR23.50 from EUR22.00, confirming its 'overweight' rating.

Analysts at Intermonte expressed strong reservations regarding the takeover bid launched for Recordati, up 0.1%, by the CVC and GBL funds through the Respighi vehicle, judging the offer of EUR51.29 per share ex-dividend as 'unattractive' and advising shareholders not to tender, as reported Tuesday by MF-Milano Finanza.

In the report, the brokerage emphasizes that Respighi's intentions remain 'unclear' should the 67% capital threshold not be reached, a condition that is nonetheless waivable. According to Intermonte, once this level is exceeded, the group could proceed with delisting via a merger with the unlisted BidCo, leveraging control of the extraordinary shareholders' meeting.

Among the decliners is also Assicurazioni Generali, down 0.8%, following the announcement of its intention to issue a new fixed-rate Tier 2 bond for a nominal amount of up to EUR750 million under its Euro Medium Term Notes Programme.

On the Mid-Cap, Iren and Acea lead the basket with a 1.3% rise each.

Buying interest in El.En., which rises 0.5% to EUR15.15 per share. Berenberg confirmed its 'buy' rating on the stock, raising the price target to EUR16.00 from EUR13.30 following quarterly results judged as mixed but showing positive signals in the medical business.

Among the basket's decliners, BFF Bank sheds 0.4% while MAIRE retreats 0.6%.

At the bottom of the mid-cap list remains Technoprobe, down 1.5%, snapping a four-session winning streak with trades exceeding EUR7 million.

On the Small-Cap, Dexelance posts a 15% gain, with over 170,000 shares changing hands.

Buying continues for Industrie De Nora, up 7.3%, after announcing on Tuesday the 100% acquisition of BW Water, a global operator in integrated water treatment solutions, with an enterprise value between USD61.5 million and USD66.5 million.

The transaction is also expected to allow the group to reach revenues close to EUR1 billion on a pro-forma basis in 2025.

On the other side of the list, EuroGroup Laminations sheds 9.3% to EUR1.153 per share. Berenberg maintains a cautious approach to the stock, confirming its 'hold' rating and a price target of EUR1.20.

Regarding estimates, the German bank revised its 2026 and 2027 Ebit forecasts downward by 10% and 14% respectively, while 2026 EPS was cut by 43%.

Among SMEs, Cofle rises by double digits at mid-session, posting a 10% gain after the board approved the 2025 accounts, which closed with a loss of EUR9.3 million compared to a loss of EUR5.6 million in the 2024 financial year.

Revenues stood at EUR48.6 million from EUR59.9 million in 2024. The result was affected, in addition to the decline in turnover, by a provision for risks, financial and currency management, and non-cash items related to the application of accounting principles concerning hyperinflation in Turkish subsidiaries.

Espe records the highest trading value and rises 7.3%, hitting a new 52-week high at EUR5.30.

Mevim, yet to see any trades, announced on Monday that it closed 2025 with a consolidated net loss of EUR774,000, an improvement over the EUR1.9 million loss in 2024.

Sales and service revenues fell to EUR2.4 million from EUR5.6 million, while the value of production decreased to EUR3.3 million from EUR5.8 million.

Lemon Sistemi, down 2.4%, co-opted Salah Al Nasser and Rodolfo Belcastro to the board of directors, the latter meeting independence requirements, following the resignations of Ciro Aquino and Salvatore Bommarito.

In New York, Wall Street remained closed on Monday for Memorial Day.

On the currency front, the euro is trading at USD1.1639 from USD1.1645 on Monday evening, while the pound trades at USD1.3478 from USD1.3501 on Monday evening.

Among commodities, Brent is trading at USD96.44 per barrel from USD97.60 on Monday evening, while gold is worth USD4,524.27 an ounce from USD4,572.45 at Monday's close.

Tuesday's economic calendar includes, from the US, at 1500 CEST, the house price index data, while at 1900 CEST, the M2 money supply data will be released.

By Antonio Di Giorgio, Alliance News reporter

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