Stock Markets Expected Higher Following US-Iran Agreement Announcement

(Alliance News) : On Monday, major European indices are expected to open in positive territory following the announcement that the US and Iran have reached a 'peace agreement' that immediately ends all military operations, including those in Lebanon.

A formal ratification ceremony for the agreement is scheduled to take place in Geneva on Friday, June 19, after which the Strait of Hormuz will be officially reopened.

Following the news, Brent crude plunged by more than 4.0%, approaching $83 per barrel, while WTI fell by more than 5.0% to settle around $80 per barrel, both hitting two-month lows.

Consequently, according to IG futures, the FTSE MIB is expected to open in the green by 1.3% or up 670.0 points, after closing up 2.0% at 51,497.21 points.

The Paris CAC 40 is projected to rise by 1.5% or 123.9 points, Frankfurt's DAX 40 is expected to gain 1.6% or 397.5 points, while the London FTSE 100 is forecast to trade up 0.8% or 84.2 points.

Among Milan's secondary indices on Friday evening, the Mid-Cap closed up 2.8% at 63,654.51, the Small-Cap finished 1.4% higher at 36,196.50, and Italy Growth gained 0.1% to 9,111.82.

In macroeconomic news, wholesale prices in Germany rose by 5.9% year-on-year in May, down from the 6.3% recorded in April, which had marked the strongest annual increase since February 2023.

Returning to Milan, among the blue chips on the Piazza Affari, Buzzi shares climbed 5.7% on Friday, following a 0.5% loss in the previous session.

Strength was also seen in Mediobanca, which saw its price rise by 4.6%, following a 0.1% gain on Thursday evening. The stock, which carries an estimated 2026 P/E ratio of 16x on the MarketScreener platform, reached the €25.77 per share area.

UniCredit, up 4.1%, announced on Friday that by early afternoon, 133.8m shares had been tendered to the exchange offer for Commerzbank, representing 11.9% of the German bank's capital and voting rights, and 12.4% of voting rights excluding treasury shares. The offer, announced on May 5, provides for 0.485 new UniCredit shares for every Commerzbank share tendered and will remain open until June 16, subject to any extensions under German law.

Leonardo, which closed down 0.4%, announced on Friday that 'results were particularly significant' within the framework of the European Defence Fund 2025. According to a group note, out of 18 proposals submitted, 15 projects were selected, 11 of which involve capability development and four research, for a total of €64m in funding.

Stellantis gained 1.7%. Notably, the company, along with Renault and Volkswagen, has joined forces to support the introduction of stronger 'Made in EU' criteria in an effort to bolster the competitiveness of the European automotive industry against growing competition from low-cost Chinese electric vehicles, according to a Friday report by the Financial Times.

In the cadet segment, Cementir Holding closed up 8.5%, rebounding from an 1.8% loss the previous day.

Ferretti gained 1.7%. The company clarified that 'no negotiations are underway' for the acquisition of the entire capital of TISG or its main assets: 'At the same time, as a leading operator in the Italian nautical sector and in line with its external growth strategy, Ferretti constantly evaluates and monitors opportunities that may arise on the market,' a note read.

Carel Industries fell 1.0%, following a 0.5% gain the previous day.

Selling pressure also hit RCS MediaGroup, which shed 1.0%, following a 1.1% loss in the prior session.

On the Small-Cap index, Tesmec saw its price rise by more than 13%, marking its third consecutive bullish session.

FILA gained 2.9%. The company could benefit from the growth of DOMS Industries following the acquisition of certain assets related to the Reynolds brand from Newell Brands subsidiaries. Intesa Sanpaolo confirmed its 'buy' recommendation on the stock with a target price of €14.3.

In a note by Giada Cabrino, the bank noted that the transaction, valued at approximately $3.7m excluding inventory, includes manufacturing assets, intellectual property, contracts, and employees related to Reynolds' operations in the writing instruments and school products segment.

Borgosesia, up 0.3%, approved on Friday the issuance of a three-year senior non-subordinated, unsecured, and non-convertible bond for a maximum amount of €35m. The first issuance is expected by June 30.

Among SMEs, Emma Villas advanced 8.5% after two bearish sessions. The stock on MarketScreener, based on a single analyst, shows a target price of €2.90, appearing significantly undervalued according to the valuation.

FAE Technology rose 5.9% to €3.39 per share. Alantra confirmed its 'buy' recommendation and maintained a target price of €4.1, highlighting that a recovery in demand in the second half of 2025, a strengthening order book, and expansion into higher-value segments support the group's growth outlook for 2026.

In the note by Luca Arena, Andrea Zampaloni, and Filippo Mazzoleni, analysts recalled that 2025 closed with revenues of €66.5m, down 7.4% from the previous year, affected by weak demand in the electronics sector, particularly in applications related to electrification and the energy transition.

Iniziative Bresciane, down 1.8%, announced on Friday that its board of directors approved the merger plans for the incorporation of Adda Energia and Appennino Energia. On the same day, the merger plans were also approved by the respective administrative bodies of the companies involved.

E-Globe, meanwhile, fell 4.6% to a price of €0.49, following the previous day's bearish candle of 1.9%.

In New York on Friday, the Dow closed in the green by 0.7% at 51,202.26, while the Nasdaq finished up 0.3% at 25,888.84 and the S&P 500 rose 0.5% to 7,431.46.

Among Asian markets, the Hang Seng is currently rising 0.4%, the Shanghai Composite is gaining 1.2%, while the Nikkei is up 5.0%.

On the currency front, the euro is trading at $1.1581, unchanged from Friday evening, while the pound is at $1.3417, also unchanged from Friday evening.

Among commodities, Brent is trading at $86.80 per barrel, unchanged from Friday evening, while gold is valued at $4,213.42 per ounce, steady from Friday's close.

Monday's macroeconomic calendar includes the Italian trade balance at 1000 CEST.

From the US, industrial and manufacturing production data will be released at 1515 CEST.

No major corporate announcements are scheduled.

By Claudia Cavaliere, Alliance News reporter

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