European Markets Expected to Open Lower After U.S. Strike

(Alliance News) - On Monday, major European indices are forecast to open lower, according to IG futures, following a U.S. strike on Iranian nuclear sites. The sell-off is anticipated to drag markets down by more than half a percentage point.

Today, foreign ministers from EU member states are meeting in Brussels to address the latest developments in the Middle East.

The summit takes place amid heightened international tensions, after the U.S. joined Israel in a series of attacks on Iran's nuclear facilities.

On the commodities front, gold is down compared to the previous close, while Iranian threats to close the Strait of Hormuz have pushed Brent crude to extend its rally above USD76.60 per barrel.

Among key European pre-market news, Eni announced the sale of a 20% stake in Plenitude to Ares Management's Alternative Credit funds for approximately EUR2.0 billion.

The deal values Plenitude at an equity value of EUR10.0 billion and an enterprise value exceeding EUR12 billion.

This transaction, following the previous sale of a 10% stake to Energy Infrastructure Partners, is part of Eni's adopted satellite model strategy.

The FTSE Mib is indicated down by 0.7%, or 270.0 points, after closing Friday up 0.7% at 39,321.35 points.

Across Europe, London's FTSE 100 is seen falling 0.5%, or 43.6 points, Paris's CAC 40 is expected to drop 0.8%, or 61.0 points, while Frankfurt's DAX 40 is set to decline 0.7%, or 159.3 points.

In Milan on Friday evening, the Mid-Cap gained 0.4% to 53,079.57 points, the Small-Cap closed up 0.7% at 30,780.69 points, while Italy Growth ended 0.1% higher at 8,132.90 points.

On the FTSE Mib, Azimut advanced 3.8% to EUR26.60 per share.

In banking sector developments, UniCredit--up 0.8% to EUR55.79 per share--said it was prepared to withdraw its offer for BPM, despite receiving EU antitrust approval, after the government invoked "golden power" to defend strategic national companies, citing national interest. BPM closed up 0.2% at EUR9.83.

The government's "golden power" could once again come into play in the Magneti Marelli dispute, where the ongoing crisis could trigger widespread layoffs at a group that still employs 6,000 people in 10 plants across Italy.

Also in the banking sector, Mario Alberto Pedranzini, CEO and general manager of Banca Popolare di Sondrio, criticized BPER's public exchange offer, deeming the EUR10.80 per share price insufficient compared to the bank's real value and prospects. Banca Popolare di Sondrio shares gained 1.8% to EUR11.725.

Unipol Assicurazioni--up 1.6% to EUR16.805 per share--announced Friday that its extraordinary shareholders' meeting approved the total non-proportional demerger project of Cronos Vita Assicurazioni.

On the Mid-Cap list, Juventus FC led the gains, climbing 1.3% to EUR3.08 per share, buoyed by a decade-long sponsorship deal with Adidas worth EUR408 million.

Carel Industries topped the list, ending up 3.1% at EUR23.1 per share.

Cembre, which closed up 1.6% at EUR56.60 per share, hit a new 52-week high at EUR57.00 per share.

Among the decliners, D'Amico fell 1.2% to EUR3.682 per share, following a broad downturn in the luxury sector.

Garofalo Health Care ended the session down 3.2% at EUR5.03 per share.

Among small caps, Bestbe Holding firmly led the pack with a 21% surge to EUR0.1350 per share, posting notable gains for the second consecutive session.

Class Editori followed, after its publisher denied rumors of a sale to Francesco Gaetano Caltagirone, who doubled his stake in Class from 2.5% to 5.2% on June 11. The stock rose 5.2% to EUR0.17 per share.

BasicNet continued its buyback program, purchasing 38,500 own shares for over EUR300,000. On Friday, it reported consolidated first-quarter revenues of EUR98.3 million, down 3.3%, with direct sales declining and royalties up 24%. Shares closed up 0.3% at EUR7.60.

Piquadro--flat at EUR2.34--set a new 52-week high at EUR2.36 per share, as did Esprinet--flat at EUR3.59.

Among SMEs, ICOP hit a new 52-week high at EUR14. On Friday, the stock closed at EUR13.85, up 6.5%. On Thursday, the company announced the full conversion of 2.4 million Price Adjustment Shares into an equal number of ordinary shares, with no change to the total share capital.

Compagnia dei Caraibi led the gains, up 12% at EUR0.314 per share.

At the bottom of the list, Gambero Rosso ended down 9.6% at EUR0.282 per share.

ATON Green Storage announced Friday the resignations of board chairman Ettore Uguzzoni and vice chairman Mauro Nervosi for personal reasons. The stock fell to EUR2.25 per share, down 1.3% from the previous session.

Reway Group reported Friday that it has entered the port infrastructure maintenance sector, securing two contracts from the Eastern Ligurian Sea Port Authority worth over EUR9 million. Shares were flat at EUR9.06.

Mare Engineering Group announced it has surpassed the 10% threshold in Eles, reaching a holding of 1.8 million shares, equivalent to 10.01% of share capital and about 9.47% of voting rights, becoming its second-largest shareholder. Mare Engineering lost 1.1%, while Eles gained 0.4% to EUR2.26 per share.

In New York on Friday evening, the Dow rose 0.1%, the Nasdaq slipped 0.5%, and the S&P 500 closed down 0.2%.

In Asia, the Nikkei lost 0.9%, the Hang Seng is down 2.0%, and the Shanghai Composite fell 0.9%.

In currencies, the euro is trading at USD1.1506 versus USD1.1513 on Friday evening, while the pound is at USD1.3431 from USD1.3464 in the previous session.

In commodities, Brent crude is trading at USD76.59 per barrel, unchanged from the previous close, while gold is at USD3,372.70 per ounce from USD3,366.48 per ounce at the previous close.

Monday's economic calendar features a speech by Fed Governor Waller from the U.S. at 0900 CEST.

At 1000 CEST, the Eurozone manufacturing index will be released, followed at 1030 CEST by the UK manufacturing purchasing managers' index.

From 1500 CEST, France will hold BTF auctions with maturities of 3, 6, and 12 months, while at 1545 CEST in the U.S., the services purchasing managers' index will be published. FOMC members' speeches are scheduled from 1910 CEST onward.

No major news is expected from Piazza Affari.

By Antonio Di Giorgio, Alliance News Reporter

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