(Alliance News) - European indices are moving without clear direction on Wednesday, as markets adopt a wait-and-see approach amid persistent geopolitical tensions and key monetary policy events.
Traders continue to closely monitor developments in the conflict between Israel and Iran, now in its sixth day with no concrete signs of de-escalation. Fears of a broader conflict, potentially involving direct U.S. intervention, have been heightened by statements from President Donald Trump, who has called for Tehran's "unconditional surrender." This has fueled demand for safe-haven assets and dampened risk sentiment.
Meanwhile, attention remains focused on the Federal Reserve, which meets today. While markets overwhelmingly expect the Fed funds rate to be held steady, investors will be watching for updates to macroeconomic projections and the dot plot, seeking clues on the timing of any future rate cuts.
On the European front, macro data showed a slowdown in UK inflation, with the annual consumer rate falling to 3.4% in May, slightly below expectations. However, the level remains historically high, strengthening the view that the Bank of England may maintain a cautious stance at upcoming meetings.
In Milan, 8% of stocks are up, 11% are down, 3% are unchanged, while 78% of shares have yet to trade.
The FTSE Mib is up 0.3% at 39,487.40 points, with a put/call ratio of 2.33.
The Mid-Cap index is fractionally lower at 53,570.38, the Small-Cap rises 0.5% to 30,979.51, and the Italy Growth index gains 0.1% to 8,088.93.
Among Europe's major financial markets, London's FTSE 100 is up 0.2%, as is Paris' CAC, while Frankfurt's DAX 40 rises 0.1%.
On the Mib, Telecom Italia starts strong, advancing 0.9% to €0.3918, marking its third consecutive bullish session.
Brunello Cucinelli is also up 0.7%, on track for its third straight positive session.
UniCredit--up 0.2%--announced it has issued a 12-year Tier 2 subordinated bond, callable after seven years, aimed at institutional investors. The issue totals €1 billion, marking the first Tier 2 issuance for 2025, and will pay a fixed coupon of 4.175% until June 2032, based on an issue price of 99.9%, equivalent to a 180 basis point spread over the mid-swap reference rate.
Pirelli--down 0.5%--reported that shareholder Camfin has submitted an updated extract of the company's shareholders' agreement. According to Camfin, the document confirms the absence of any party able to exercise control over Pirelli. The assessment takes into account the outcome of the June 12 meeting, where the 2024 financial statements were approved with 57.1% of votes in favor and 42.9% against, representing MPI Italy's share.
Iveco drops 1.8% to €15.70 per share, following a 1.1% decline in the previous session.
On the Mid-Cap, NewPrinces is up 1.4% to €16.94 per share, rebounding after four bearish sessions.
Technogym rises 1.2%, marking its third consecutive bullish session.
OVS--up 3.1%--reported Tuesday that it closed the first quarter with slightly higher revenue year-on-year, at €354 million from €352 million in the same period last year. Adjusted EBITDA, however, slipped to €28.1 million from €29.7 million, due to inflationary pressures on structural costs.
On the downside, Industrie de Nora ends the list, losing 1.0%, and is on track for its sixth consecutive bearish session if confirmed at the close.
In the Small-Cap segment, Beewize surges 6.1% to €0.4530, building on Tuesday's 2.4% gain.
Geox--up 1.4%--announced Tuesday that the capital increase with pre-emptive rights approved in April has been fully subscribed, for a total value of €29.9 million. A total of 107.7 million new shares were issued, each paired with a warrant. Today alone, 6.8 million unexercised rights were taken up, leading to the subscription of about 2.8 million new shares. The remaining 36 rights were covered by controlling shareholder LIR Srl, which subscribed to the final 15 shares.
Class Editori, meanwhile, drops 5.0%, bringing the price down to €0.47, following two bearish daily candles after a previous rally.
Bastogi falls 2.1%, following Tuesday evening's 0.9% loss. However, since the start of 2025, the stock's market cap has increased by 35%.
Among SMEs, Impianti jumps 6.0%, rebounding from a 0.9% decline in the previous session.
Cloudia Research advances 4.4%, after a 1.9% drop on Tuesday.
DBA Group--up 0.7%--announced Tuesday the launch of a buyback program for up to 120,000 of its own shares. Specifically, the purchase price must be no less than 20% below and no more than 20% above the reference price recorded in the previous trading session for each transaction.
On the downside, Compagnia dei Caraibi loses 6.0%, setting the price at €0.30 and bringing the year-to-date loss to 40%.
In Asian markets, the Nikkei rose 0.9%, the Hang Seng retreated 1.2%, while the Shanghai Composite posted a fractional gain.
In New York last night, the Dow fell 0.7%, the Nasdaq lost 0.9%, and the S&P 500 dropped 0.8%.
In currencies, the euro is trading at USD1.1515 from USD1.1513 Tuesday evening, while the pound is at USD1.3459 from USD1.3502 last night.
In commodities, Brent crude trades at USD75.91 per barrel from USD75.01 at the previous close, while gold is valued at USD3,384.22 an ounce from USD3,387.47 the previous day.
On Wednesday, the economic calendar features the release of Eurozone inflation data at 1100 CEST, followed half an hour later by the auction of 30-year German bunds.
From 1300 CEST, eyes will be on U.S. data for mortgages, retail sales, and crude oil inventories.
The highlight of the day comes at 2000 CEST, with the Federal Reserve's rate decision, followed half an hour later by a press conference from Chairman Jerome Powell.
Among companies on the Milan Stock Exchange, results are expected from Bestbe Holding.
By Maurizio Carta, Alliance News Reporter
Comments and questions to redazione@alliancenews.com
Copyright 2025 Alliance News IS Italian Service Ltd. All rights reserved.
