European Markets Close Higher; STM Leads Gains, Mediobanca Slumps

(Alliance News) - On Tuesday, major European indices ended the session in positive territory, with Milan's Piazza Affari recovering from a weak start to close slightly above parity and the 40,000-point threshold. Wall Street also saw upbeat sentiment, with all major indices trading in the green.

Equity markets navigated mixed signals from the US economy: according to IG analyst Axel Rudolph, "the increase in private sector job openings and the first decline in factory orders in five months appear to have offset each other, with attention now turning to Friday's upcoming job report."

Meanwhile, the OECD revised down its global growth forecasts, now projecting a 2.9% expansion for 2025-2026, down from 3.3% in 2024, citing trade tensions and US-imposed tariffs, which could slow US GDP growth to 1.6%.

As a result, the FTSE Mib closed 0.2% higher at 40,074.47. The Mid-Cap slipped 0.1% to 54,238.04, the Small-Cap dropped 0.3% to 31,490.79, while the Italy Growth index ended flat at 8,123.77.

London's FTSE 100 closed up 0.2%, Paris's CAC 40 advanced 0.3%, and Frankfurt's DAX 40 gained 0.6%.

Back in Milan, among blue chips on the main index, STMicroelectronics topped the leaderboard, closing up 3.4% with nearly 4 million shares traded.

Stellantis rebounded after Monday's decline, finishing 2.6% higher.

Leonardo also saw buying interest, rising 1.5% after the European Commission approved its joint venture with Britain's BAE Systems and Japan's Jaiec as part of the Global Combat Air Programme, focused on developing sixth-generation fighter jets.

Italgas slipped 0.5% as it prepares for a territorial reorganization starting July 1, with the merger of Italgas Reti and 2i Rete Gas--a key step toward creating a leading European gas distribution operator.

Pirelli gained 0.7% amid ongoing tensions over its ownership structure. Confindustria president Emanuele Orsini called for a strong national response, urging government intervention to defend what he described as "an excellence of our Made in Italy."

Italy's Minister for Enterprises and Made in Italy, Adolfo Urso, responded swiftly, assuring the government's commitment to monitoring the situation under the Golden Power rules, already activated in 2023, in light of recent US measures.

Iveco Group ended 0.4% higher after recent declines. Investors are now assessing potential valuations for the sale of Iveco Defense Vehicles, deemed "non-core" by John Elkann, as highlighted by Alliance News columnist Francesco Bonazzi.

Snam, Poste Italiane, and Assicurazioni Generali all came under pressure, posting losses of 1.3%, 1.5%, and 2.0%, respectively.

Mediobanca was the worst performer on the main index, dropping 3.0% despite announcing the placement of a new EUR750 million covered bond maturing in August 2030.

On the Mid-Cap, Technoprobe shone with a 5.4% jump to EUR7.185 per share, buoyed by a positive note from Deutsche Bank Research, which raised its price target to EUR9.00 from EUR6.30 and upgraded the stock to 'buy' from 'hold'.

Fincantieri rose 1.5% after its Norwegian subsidiary Vard announced the delivery of two of the world's first ships with cyber notation.

Tamburi Investment Partners slipped 0.6%. The company reported the purchase of 28,518 ordinary shares for a total outlay of EUR229,042.74.

Juventus FC was the weakest link on the Mid-Cap, losing 3.7% after gains in the previous session.

On the Small-Cap segment, Tinexta saw the highest trading turnover, closing up 3.1%.

IGD SIIQ lost 1.5% to EUR3.795 per share. The company announced the sale of the "Crinul Nou" shopping center in Alexandria, Romania, to a local private investor. The transaction, worth around EUR3.3 million, was carried out in line with book value.

BasicNet continued its buyback program, purchasing shares worth around EUR361,000 between May 26 and June 2. The stock ended down 1.2%.

Bestbe Holding and EuroGroup Laminations closed at the bottom of the list, recording declines of 4.9% and 4.0%, respectively.

Among SMEs, Eles surged 4.6%, snapping a three-session losing streak and spending much of the day near the top of the rankings.

ALA posted the highest trading value of the day, ending the session up 0.5%.

Mare Group fell 3.4%. The company announced Tuesday that the European Commission had approved the Cryostar project under the Horizon Europe - Clean Aviation Joint Undertaking program.

The initiative, focused on developing safe storage solutions for liquid hydrogen on aircraft, involves activities worth a total of EUR5.1 million, fully funded by non-repayable grants. Mare Group will receive EUR726,875, with 50% to be advanced by 2025.

Franchi Umberto Marmi slipped 0.8%. The board of directors approved a share buyback and disposal program totaling EUR10 million.

Metriks AI was the worst performer, plunging nearly 18%. Despite the drop, the stock has doubled in value since its market debut on May 30, bringing its market capitalization to around EUR29.2 million.

In New York, the Dow was up 0.4%, the Nasdaq gained 0.8%, and the S&P 500 rose 0.5%.

In currency markets, the euro changed hands at USD1.1372, down from USD1.1423 on Monday evening, while the pound traded at USD1.3520, compared to USD1.3548 the previous evening.

Among commodities, Brent crude was trading at USD65.75 per barrel, up from USD64.90 on Monday evening, while gold was valued at USD3,373.22 an ounce, down from USD3,398.70 the previous evening.

Wednesday's macroeconomic calendar kicks off at 0230 CEST with Japan's services PMI index.

At 0900 CEST, Spain's industrial production data will be released, followed at 0915 CEST by the country's services PMI.

From 0945 CEST onwards, eurozone PMI readings will be in focus: Italy's composite and services indices will be published, followed at 0950 CEST by French data and at 0955 CEST by German figures. At 1000 CEST, the eurozone services PMI will be released, along with another composite index for Germany.

At 1030 CEST, the UK will publish its composite and services PMI data.

In the afternoon, at 1300 CEST, the US will release the 30-year MBA mortgage rate and weekly mortgage applications.

At 1545 CEST, S&P Global's US composite and services PMI indices will be published, followed at 1600 CEST by the ISM non-manufacturing index. At 1630 CEST, the weekly US crude oil inventory report is expected.

No major company events are scheduled for Piazza Affari-listed firms.

By Antonio Di Giorgio, Alliance News reporter

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