Markets Rise, But Caution Persists Amid Middle East Tensions

(Alliance News) - On Friday, major European indices climbed higher, though markets remain cautious in light of ongoing developments in the Middle East conflict, including Iran's attacks on the port of Haifa, Tel Aviv, and Jerusalem.

While the EU seeks to carve out a role in diplomatic negotiations, Netanyahu has stated, "We will stop Iran's nuclear ambitions with or without Trump."

The US President has delayed any decisions for two weeks, effectively defusing the immediate risk of escalation. As a result, markets are catching their breath once again.

Among Italian indices, the FTSE Mib rebounded, closing up 0.7% at 39,321.35 points. The Mid-Cap gained 0.4% to 53,079.57, the Small-Cap rose 0.7% to 30,780.69, while the Italy Growth index increased by 0.1% to 8,132.90.

Major European bourses also closed in positive territory, with Frankfurt's DAX up 1.2%, Paris' CAC 40 gaining 0.5%, while London's FTSE 100 slipped by 0.1%.

Chris Beauchamp, Chief Market Analyst at IG, noted: "Wall Street rallied as the threat of US intervention in the Middle East has, for now, receded. Trump's notorious 'two-week period' for making decisions suggests the rush toward further conflict has paused, though Iranian intransigence could provoke the president. This should also cool oil prices for the moment, as the market has become relatively insensitive to the alternating missile launches and airstrikes that currently characterize the Iran-Israel war."

The analyst added: "Consolidation has long been the main theme for US equities, but Christopher Waller has kept hopes alive for a more accommodative Fed, believing the time has come for the Fed to cut rates. He also noted that tariffs are not expected to provide a lasting boost to inflation, reinforcing the case for 'overlooking' any upticks and focusing on the need to support the US economy," Beauchamp concluded.

On the FTSE Mib in Milan, Azimut led the way, gaining 3.8% to EUR26.60 per share.

In banking sector moves, UniCredit -- up 0.8% to EUR55.79 per share -- signaled it is ready to withdraw its offer for BPM, despite receiving the green light from the EU antitrust regulator, after the government invoked "golden power" to protect strategic national companies, citing national interest. BPM closed with a 0.2% gain at EUR9.83.

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

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

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

On the Mid-Cap index, Juventus FC led with a 1.3% rise to EUR3.08 per share, buoyed by a decade-long deal with Adidas, which will serve as technical sponsor for EUR408 million.

Carel Industries topped the chart with a 3.1% increase to EUR23.1 per share.

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

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

Garofalo Health Care ended the session as the worst performer, down 3.2% to EUR5.03 per share.

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

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

BasicNet, which continued its buyback program with the purchase of 38,500 shares for over EUR300,000, reported consolidated first-quarter revenue of EUR98.3 million, down 3.3%, with direct sales declining but royalties up 24%. The shares gained 0.3% to EUR7.60 on Friday.

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

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

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

Gambero Rosso closed with a 9.6% loss to 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, down 1.3% from the previous session.

Reway Group announced Friday it has entered the port infrastructure maintenance sector, having secured two contracts from the Eastern Ligurian Sea Port System Authority worth over EUR9 million. The stock was unchanged at EUR9.06.

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

On US markets, the Dow inched up 0.04% to 42,189.58, the Nasdaq fell 0.8% to 19,396.14, while the S&P 500 slipped 0.3% to 5,960.61.

In currencies, the euro traded at USD1.1513 versus USD1.1470 Thursday evening, while the pound exchanged at USD1.3464 from USD1.3428 in the previous session.

Among commodities, Brent crude traded at USD76.59 per barrel from USD78.74 at the previous close, while gold was at USD3,366.475 an ounce from USD3,370.675 previously.

Monday, June 23, the economic calendar features Japan's JPY services PMI at 0230 CEST and a speech by Fed President Waller in the US at 0900 CEST.

At 1000 CEST, the eurozone manufacturing index will be released, followed by the UK manufacturing PMI at 1030 CEST.

From 1500 CEST, France will hold BTF auctions with 3, 6, and 12-month maturities, while at 1545 CEST the US services PMI will be released. From 1910 CEST, speeches by FOMC members are expected.

No major news is expected from Milan's Piazza Affari.

By Michele Cirulli, Alliance News Reporter

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