(Alliance News) - Major European indices are trading higher on Tuesday, attempting to claw back previous losses as investors continue to gauge the resilience of the global rally fueled by technology stocks and artificial intelligence.

The FTSE Mib is up 1.0% at 50,304.00, the Mid-Cap has gained 1.0% to 62,508.42, the Small-Cap is up 0.7% at 36,058.73, while Italy Growth has edged up 0.1% to 9,144.46.

London's FTSE 100 is up 0.4%, while the Paris CAC 40 and the Frankfurt DAX 40 have both climbed 1.0%.

Attention remains high regarding developments in the Middle East. Iranian media reported that Tehran has suspended contacts with Washington in response to Israeli strikes in Lebanon, while US President Donald Trump reiterated that negotiations are ongoing and expressed confidence that a memorandum of understanding for the reopening of the Strait of Hormuz could be reached as early as next week.

On the energy front, some exporters have warned OPEC+ that supply disruptions could persist even after the Strait reopens.

US crude is hovering around USD93 per barrel: a failure in negotiations could quickly push prices back above USD100, while a de-escalation would favor a return toward USD80. According to Swissquote, a further decline in global inventories could even support a climb beyond USD120.

Gold is regaining ground after yesterday's sell-off, returning above USD4,500 per ounce, supported by geopolitical uncertainty and cooling oil prices.

On the macroeconomic front, European focus will turn to the preliminary Eurozone inflation estimate for May, which could provide insights into the impact of Middle East tensions on price pressures. The corporate calendar remains devoid of major earnings releases.

On Wall Street, the S&P 500 hit new all-time highs driven by the strength of the tech sector. Traders also continue to weigh the possibility of a Federal Reserve rate hike by year-end following recent signs of accelerating inflation.

Focus will now shift to the US JOLTS job openings data and, crucially, Friday's official labor market report, considered decisive for the US central bank's upcoming decisions.

Back in Milan, on Piazza Affari's blue-chip index, STMicroelectronics leads the pack with an 8.1% gain after announcing it has raised its growth expectations for the data center market, citing persistent strong demand for AI infrastructure and progress in expanding production capacity.

The company now forecasts data center revenue of approximately USD1 billion in 2026, compared to previous guidance of 'well above USD500 million'.

Should current market dynamics persist and based on existing commercial commitments, segment revenue could potentially double in 2027. STMicroelectronics had previously indicated revenue 'well above USD1 billion' for that year.

Brunello Cucinelli is up 1.4%. Morgan Stanley maintains a positive outlook on Brunello Cucinelli, viewing the company as a primary beneficiary of structural shifts in the luxury market. Analysts have subsequently raised the price target to EUR100 from EUR95, confirming an 'overweight' rating.

UniCredit shows strength, rising 1.2%. Major international institutional investors supported the bank's exchange offer for Commerzbank, according to minutes from the May 4 meeting that approved the capital increase for the transaction, as reported Tuesday by MF-Milano Finanza. Supporters include Vanguard, BlackRock, and Norges Bank, among others.

Saipem - up 0.8% - could secure a major contract in the Middle East. A joint venture with Larsen & Toubro is reportedly in pole position for offshore packages 2A and 2B of the Dorra gas field, located between Saudi Arabia and Kuwait.

According to UpstreamOnline, the project includes offshore structures, subsea pipelines, and over 50,000 tons of fabrication work. The entire onshore and offshore development is valued at approximately USD10 billion (EUR8.6 billion), though the specific shares for the two groups are not yet known. The final decision remains subject to uncertainty surrounding the Middle East conflict.

Stellantis is up 1.4% after closing lower on Monday. The hybrid Fiat 500, identified by the manufacturer as the key model for the relaunch of the Mirafiori plant, could see lower-than-expected volumes in 2026. Enlarged Europe COO Emanuele Cappellano acknowledged that the 100,000-unit annual target appears difficult to reach, following production of approximately 15,000 vehicles in the first quarter, largely in line with orders received.

Among the decliners, Leonardo is down 0.4%, while Eni has retreated 0.5%.

On the Mid-Cap, Sesa and Sanlorenzo lead the gains, both advancing 3.6%.

Selling pressure on MAIRE, which opened down 0.5% at EUR14.46.

Pirelli & C. - up 0.7% - announced Monday that two slates of candidates have been filed for the renewal of the board of directors for the 2026-2028 term.

BFF Bank sits at the bottom of the mid-cap index, recording a 0.9% decline after falling 4.8% on Monday evening.

On the Small-Cap, Datalogic has halted its rally, slipping 0.2% to EUR5.82. On Monday, the company's shares closed up 36% at EUR5.82, reaching nearly a one-month high following the announcement of a voluntary tender offer by Hydra, the group's controlling shareholder with nearly 65% of the capital.

Bearish momentum also for Trevi Finanziaria Industriale, down 0.4% at EUR7.00. Alantra maintains a 'buy' rating on the stock with a target price of EUR10.00 per share, after the company announced an irrevocable commitment from Polaris Capital Management to fully subscribe to its portion of the upcoming EUR100 million capital increase.

Analysts Luca Arena, Andrea Zampaloni, and Filippo Mazzoleni emphasize that Polaris, which holds 6.60% of the capital on behalf of its clients, provides further support for the transaction.

Dexelance - up 3.5% - announced Monday the conclusion of the offering period for the rights issue of up to EUR49.9 million, approved by the board on May 4.

Among SMEs, Helyx Industries is up 8.7% following a double-digit decline in the previous session.

Culti Milano - untraded - is heading toward a delisting from Piazza Affari following the success of the total tender offer launched by Berger International. At the end of the acceptance period, 283,625 shares were tendered, representing 9.2% of the share capital and 84% of the shares targeted by the offer.

ABP Nocivelli - down 4.6% - stated Monday that it is unrelated to the facts reported in press articles regarding the investigation into the Health and Science Park project in Turin, reiterating 'that it has always operated in compliance with applicable regulations and the principles of fairness and transparency'.

On Monday, Banca Akros informed that it has suspended its rating on ABP Nocivelli after the Turin Prosecutor's Office opened an investigation into the tender for the hospital in the Piedmontese capital.

In New York on Monday evening, the Dow gained 0.1%, the Nasdaq advanced 0.4%, and the S&P 500 rose 0.3%.

In Asia, the Nikkei closed down 0.3%, the Hang Seng rose 2.5%, while the Shanghai Composite advanced 0.4%.

On the currency front, the euro is trading at USD1.1647 from USD1.1625 on Monday evening, while the pound is at USD1.3473 from USD1.3450 yesterday evening.

Among commodities, Brent is trading at USD93.70 per barrel from USD96.40 on Monday evening, while gold is valued at USD4,531.93 per ounce from USD4,473.85 at yesterday's close.

On Tuesday's economic calendar, UK mortgage and money supply data are due at 1030 CEST.

In the afternoon, US JOLTS job openings are expected at 1600 CEST, while a speech by Governor Bailey is scheduled for 1600 CEST in the UK.

No major corporate announcements are expected from companies listed on Piazza Affari.

By Antonio Di Giorgio, Alliance News reporter

Comments and questions to redazione@alliancenews.com

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