(Alliance News) : The FTSE MIB continues its strong run, closing the session above the 52,400 level. The index is consolidating its upward trajectory and approaching all-time highs, fueled largely by gains in the banking sector. Market sentiment remains supported by an improvement in global outlook, bolstered by a preliminary agreement between the US and Iran aimed at de-escalating conflict and reopening the Strait of Hormuz, a critical artery for energy dynamics.

On the monetary front, interest rate expectations continue to soften. Money markets are now pricing in only one rate hike from the Eurotower by year-end, down from previous estimates of at least two moves. Excess liquidity at the ECB rose slightly, remaining above €2,200bn, signaling that liquidity conditions within the banking system remain ample.

On the eve of the Federal Reserve's interest rate decision, markets are positioned for the Federal funds rate to be maintained within the current corridor of 350 to 375 basis points. For the Eccles Building : which sees the debut of new chief Kevin Warsh at the helm, replacing Powell : markets are pricing in a probability of just over 50% for a rate hike in 2026.

The MIB closed up 1.2% at 52,432.56 points, the Mid-Cap ended slightly above par at 64,956.81, the Small-Cap rose 0.1% to 36,781.46, while Italy Growth gained 0.2% to 9,155.35 points.

European peers also finished in the green, with the CAC 40 rising 0.8%, the DAX 40 advancing 0.1%, and the FTSE 100 gaining 0.7%.

In Piazza Affari, UniCredit : showing strength since the opening bell : saw its share price climb 4.2% to €77.68. The clash between the Italian banking group and Commerzbank is intensifying ahead of the closing of the exchange offer (OPS).

The Frankfurt Prosecutor's Office has launched a preliminary investigation into communications made by UniCredit to BaFin regarding offer acceptances, following a complaint by the German bank's supervisory board alleging market manipulation. No formal proceedings have been opened at this time, the newspaper added.

Intesa Sanpaolo gained 2.9%. Fitch Ratings affirmed Intesa Sanpaolo Spa's long-term rating at 'A-' with a stable outlook and its viability rating at 'a-', stating that the voluntary public tender and exchange offer for Banca Monte dei Paschi di Siena Spa does not materially alter the group's credit profile.

Telecom Italia : up 1.5% : announced on Monday that it has completed its reverse stock split at a ratio of one new share for every ten existing shares, following the resolution approved by the extraordinary shareholders' meeting on April 15. The operation, previously announced on June 10, was carried out today after the cancellation of five ordinary shares provided by Intermonte SIM Spa to ensure the overall mathematical balance of the split.

Banco BPM advanced 1.9%. The Milanese bank : controlled by Crédit Agricole with a stake of just over 20% : is evaluating its next moves amid the complex landscape of banking consolidation and the MPS situation.

A2A : down 0.6% : announced on Monday that it repurchased 705,000 of its own ordinary shares between June 11 and 12. The shares were bought at an average unit price of €2.2742, for a total value of €1.6m.

Saipem dropped 4.7%, weighed down by falling crude prices. The stock : which closed at €4.59 : reversed course after four sessions of bullish candles.

In the Mid-Cap segment, Caltagirone gained 3.1%, marking its third consecutive session of gains.

BFF Bank closed up 4.0%. Notably, Citadel Advisors, D. E. Shaw & Co., Marshall Wace, Two Sigma Investments, and Walleye Capital all reduced their short positions on the stock.

d'Amico advanced 0.8%, marking its sixth consecutive bullish session with the price around €7.80.

Banca Ifis climbed 2.1% to €22.12, its third consecutive bullish candle. The stock : which has a market capitalization of just under €1.4bn : shows an average target price of €28.12 based on 5 analysts on the MarketScreener platform, suggesting it remains undervalued by approximately 30%.

Safilo Group : down 3.8% : announced Tuesday that between June 8 and 12, it purchased 400,000 of its own ordinary shares at a price of €1.7254 each, for a total value of €690,000.

On the Small-Cap index, Eurotech saw its price jump 9.4%, its third consecutive bullish candle.

Piquadro : up 3.5% : announced Monday that its board of directors approved the consolidated financial statements for the year ended March 31, reporting a profit of €12.9m, an increase of over 11% compared to €11.6m in the previous year. The board will propose a dividend distribution totaling €7.0m.

BasicNet : up 1.2% : disclosed Monday that it purchased 62,500 treasury shares between June 8 and 12 at an average price of €7.205 each, for a total value of €450,306.83. Following the buyback, the company holds approximately 7.0m treasury shares, representing 13% of its share capital.

Trevi Finanziaria Industriale closed down 5.6%. The stock lost ground after two sessions of bullish candles.

Among SMEs, Compagnia dei Caraibi performed well, with its price rising 5.4% to €0.36 per share.

Mare Group advanced 3.8% to €4.10. Alantra initiated coverage on the stock with a 'buy' recommendation and a target price of €7.60.

The board of Farmacosmo : up 4.4% : approved its 2026-2030 business plan on Tuesday, outlining the company's growth strategy. The plan forecasts 2030 revenues between €75m and €77m and a positive net financial position, with estimated cash availability between €5.2m and €7.5m.

Circle : up 1.5% : announced Tuesday that it has secured new contracts from a leading terminal operator and MTO active in container traffic management and intermodal rail logistics, with a total value of approximately €110,000.

In New York, the Dow is up 0.8%, while the Nasdaq is down 0.6% and the S&P 500 is down 0.3%.

In currency markets, the euro is trading at $1.1605, up from $1.1602 on Monday evening, while sterling is trading at $1.3423, down from $1.3437 on Monday evening.

Among commodities, Brent crude is trading at $79.60 per barrel, down from $83.11 on Monday evening, while gold is valued at $4,326.37 per ounce, down from $4,352.90 at Monday's close.

Wednesday's macroeconomic calendar includes Japan's trade balance data at 0150 CEST. UK inflation data is due at 0800 CEST. At 1100 CEST, the focus shifts to Eurozone inflation.

From the US, the mortgage market report is due at 1300 CEST, followed by retail sales data at 1430 CEST.

At 2000 CEST, the FOMC will announce its interest rate decision, followed by a press conference at 2030 CEST.

No major corporate announcements are scheduled for Piazza Affari.

By Maurizio Carta, Alliance News reporter

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