Traders in risk-on mode; Euro eyes USD1.18

(Alliance News) - European stock markets maintain a positive stance, with the MIB advancing beyond the 47,800 level, following an improvement in global sentiment and a progressive repricing of geopolitical risk.

The euro is appreciating, pushing just below the USD1.18 mark - its highest level since before the escalation of the conflict in late February - supported by a general return of risk appetite and outflows from traditional safe-haven assets. This move occurs despite a still unstable scenario, with the U.S. blockade of Iranian ports remaining in place and U.S.-Iran negotiations proving inconclusive, though talks may resume in Islamabad in the coming days.

The persistence of risk related to the Strait of Hormuz continues to represent a significant tail risk, keeping market sensitivity to energy prices and inflationary pressures elevated.

In this context, monetary policy expectations remain geared toward a more restrictive approach. The market is now pricing in a more hawkish trajectory for the ECB, with at least two further rate hikes expected by year-end. A similar dynamic is seen in the UK, where traders are discounting nearly two additional tightenings by the Bank of England.

The overall picture remains fragile, however. As highlighted by several strategists, markets are pricing in hope rather than a resolution, with the absence of an immediate escalation being sufficient to support risk-on assets, even in the absence of real diplomatic progress.

Consequently, the FTSE MIB is recording a 0.6% gain at 47,807.99 points.

Among the smaller indices, the Mid-Cap is up 1.1% at 57,665.36, the Small-Cap advances 1.3% to 34,289.43, while Italy Growth rises 0.5% to 8,693.30.

London's FTSE 100 is up 0.1%, the Paris CAC 40 advances 0.7%, while the Frankfurt DAX 40 marks a 1.0% gain.

Returning to Milan, Amplifon advances 4.3% after two sessions in the red.

Strength is also seen in Moncler, which pushed its price up 2.9% to EUR54.90 per share following a 2.5% loss in the previous session.

Stellantis advances 2.6% to EUR6.87 per share. The company is initiating a corporate simplification with a planned merger by incorporation of its subsidiary Punch Powertrain PSA E - Transmission Assembly Italy into Stellantis Europe. As reported by MF-Milano Finanza on Tuesday, the operation aims to generate industrial synergies by centralizing activities related to the production of eDCT electrified dual-clutch transmissions for the group's hybrid platforms. As it involves a 100% owned subsidiary, the merger will take place in a simplified form, without exchange ratios.

Banco BPM, meanwhile, advances 0.3% to EUR12.57 per share. It is noted that Goldman Sachs has cut its target price on the stock to EUR13.90 from the previous EUR14.30.

Nexi retreats 0.5% to EUR3.43 per share. Notably, Citigroup has slashed its target price to EUR3.40 from EUR5.00.

Eni is shedding 1.3% following the cooling of crude oil prices, with the stock trading around EUR23.70.

On the secondary segment, Technoprobe advances 4.2% after an 0.8% loss in the previous session.

Danieli & C - bullish with a 4.8% gain - announced on Monday the signing of an agreement with Marcegaglia for the construction of a steel production and flat product rolling plant in Fos-sur-Mer, France, for a total contract value of approximately EUR450 million, including options and spare parts.

Revo Insurance advances 2.2% to EUR23.40. Intesa Sanpaolo confirmed its "buy" recommendation on the stock and raised the target price to EUR25.40 from EUR23.20. The analysis, authored by Emanuele Musio, emphasizes that the group is "built for long-term compounding" thanks to a distinctive technological model and multiple growth levers.

Ferretti advances 0.3%. The partial tender offer launched by Karel Komárek for Ferretti Group has closed, collecting approximately 8.7% of the capital, equal to nearly 57% of the offer, bringing the total stake to 23.2%. The operation, conducted through KKCG Maritime, involved an outlay of EUR202 million to increase its holding to 29.9% from 14.5% in the luxury yachting group.

Pirelli is flat at EUR6.06. The Chinese group Sinochem, through the vehicle Marco Polo International Italy, has challenged the restrictions provided by the Golden Power decree on Pirelli, arguing that such measures "prejudice the legitimate rights and interests" held as a shareholder under Italian corporate law and the company's bylaws. The group, which holds approximately 34% of Pirelli's capital, announced its intention to take legal action against the measure, deemed harmful to shareholder prerogatives.

On the Small-Cap index, strength is seen in Banca Profilo, which climbed 9.5% to around EUR0.1660. The stock - which reports a market cap of approximately EUR110 million with a free float of about 35% - closed flat in the last session.

Softlab advances 6.5% to EUR1.06 per share, following a 6.5% loss in the previous session.

Bastogi retreats 2.3%, breaking a streak of four consecutive bullish candles, ahead of financial results expected later today.

Cellularline sheds 1.3% to EUR2.23 per share, after a 3.4% loss in the previous session.

Among SMEs, High Quality Food advances 4.6%, following a 3.5% gain on Monday evening.

Innovatec advances 3.3% to EUR0.19 per share, after a 1.6% loss the day before.

SolidWorld - up 8.7% - is acquiring 100% of Miralis, in which it already held 22% since 2024, continuing its corporate streamlining process. The merger by incorporation of Miralis into the parent company is expected by the end of the current fiscal year, with integration as a business unit dedicated to advanced digitalization and PLM consulting activities.

Circle Group - down 0.4% - announced on Tuesday that its subsidiary eXyond Srl has secured a new contract worth approximately EUR290,000 from a leading Italian intermodal logistics operator.

The project involves the development and implementation of advanced solutions for the digitalization and automation of rail and intermodal logistics flows, focusing on rail Fast Corridors, Gate Automation systems based on the eXyond GOS platform, and software modules to ensure interoperability between terminal systems and digital platforms.

H-Farm marks a 3.7% decline, following a flat session the day before, with a year-to-date loss for 2026 hovering around 17%.

In New York last night, the Dow closed up 0.6%, the Nasdaq rose 1.2%, while the S&P 500 advanced 1.0%.

On the currency front, the euro is trading at USD1.1791 from USD1.1706 on Monday evening, while the pound exchanges at USD1.3544 from USD1.3454 last night.

Among commodities, Brent is trading at USD98.70 per barrel from USD101.37 per barrel last night, while gold is worth USD4,776.35 per ounce from USD4,707.84 per ounce last night.

Tuesday's macroeconomic calendar includes the ADP employment report at 1415 CEST, while Balz of the Bundesbank and Barkin and Collins of the Fed are scheduled to speak at 1900 CEST.

By Maurizio Carta, Alliance News reporter

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