Tensions Between EU, Russia, and US Weigh on Markets

(Alliance News) – On Tuesday, escalating tensions between the EU, US, and Russia put a damper on markets. The EU is rushing to approve its latest round of sanctions against Russia, while the White House has issued a 50-day ultimatum for peace in Ukraine.

After this deadline, tariffs on Russia will rise to 100%—a move designed to indirectly target the Kremlin's trading partners and pressure them into isolating President Putin.

In this climate, the FTSE Mib edged up 0.1% to 40,212.98 points.

Across other European markets, Paris’s CAC 40 held steady at 7,806.73 points, Frankfurt’s DAX 40 gained 0.1%, and London’s FTSE 100 was virtually unchanged at 9,000.26 points.

Among smaller indices, halfway through the trading day, the Mid-Cap climbed 0.5% to 55,454.11 points, the Small-Cap hovered just below parity at 32,069.55 points, and Italy Growth was up 0.1% at 8,274.86 points.

Prysmian rose 2.3% after UBS raised its target price to EUR72.00 from EUR70.00.

Stellantis also saw a 2.3% increase.

The ongoing banking sector shake-up remains a hot topic. The Italian government has stated it is calm and ready to cooperate with the EU regarding the Golden Power invoked over UniCredit’s offer—down 0.5%—for Banco BPM, which was down 0.7% at midday.

Mediobanca, up 0.7%, openly criticized the government’s role in the recent OPS launched by Banca Monte dei Paschi di Siena, which kicked off yesterday with a limited discount of 2.7%, as reported by Il Sole 24 Ore on Tuesday. MPS gained 0.6% to EUR7.056 per share.

A2A, according to a study by the University of Milan, leads in corporate welfare with EUR72 million distributed. The stock slipped 0.4% to EUR2.193.

Recordati dropped 1.0% after Barclays cut its target price to EUR50.00 from EUR52.00, maintaining an ‘underweight’ rating.

Leonardo closed the list in the red, down 1.2%.

On the Mid-Cap, Alerion climbed 2.7%, marking a strong 39% gain over the past thirty days.

Garofalo Health Care led the pack, up 3.1% to EUR5.06 per share.

It was a symbolic day for Explora Journeys, the luxury cruise brand of the MSC Group, which celebrated three milestones simultaneously: the technical launch of Explora III, the coin-laying ceremony for Explora IV, and the start of construction for Explora V.

By 2028, the fleet is expected to comprise six vessels, all built by Fincantieri in Genoa, thanks to a total investment of EUR3.5 billion from the Aponte family.

Fincantieri, among the worst performers in the secondary index, fell 1.6% to EUR16.54.

WeBuild continued its upward session, gaining 0.6% after the company strengthened its presence in Saudi Arabia with new contracts worth USD600 million for the Diriyah Square project.

RCS Mediagroup slipped 1.0% to EUR0.994 per share.

LU-VE ended the day down 2.0% at EUR31.95 per share.

EPH bounced back toward the top of the small caps, up 9.0%, while Mondo TV led with a 9.2% gain.

Unidata advanced 4.1% to EUR3.04 per share.

Dexelance bought back 16,400 of its own ordinary shares for over EUR113,000 and slipped 0.6%.

Elica, which rose 3.3% to EUR1.415 per share, obtained approval for the full acquisition of China’s PuGan.

Among SMEs, Cloudia Research stood out with a 5.3% increase. The stock also performed well on a monthly basis, up 13%.

ATON Green Storage topped the list with a 6.7% gain to EUR2.27 per share, after closing at the bottom of the basket yesterday.

Circle secured a EUR200,000 contract for the digitalization of logistics and port systems, but the stock was down 2.9%.

Fope—down 0.5%—announced Tuesday it had closed the first half with consolidated net revenues of EUR43.0 million, up 45% from EUR29.6 million in the same period of 2024.

Casta Diva Group, which posted a negative balance of 0.8%, reported consolidated production value of EUR58.2 million for the first half, up 1.7% from the same period in 2024.

Confinvest signed a preliminary agreement to acquire the business branch of Dierre dedicated to trading and dealing in precious metals and the marketing of investment gold coins. Confinvest shares were down 2.5% at EUR1.755 per share.

In New York on Monday evening, the Dow closed up 0.2%, the Nasdaq ended 0.3% higher, and the S&P 500 rose 0.1%.

In Asia, the Nikkei closed up 0.5%, the Shanghai Composite ended the session down 0.4%, while the Hang Seng finished up 1.6%.

On the currency front, the euro traded at USD1.1687, up from USD1.1680 at Monday’s close, while the pound was at USD1.3455, compared to USD1.3440 on Monday evening.

Among commodities, Brent crude traded at USD69.15, down from USD69.55 per barrel at the previous close, while gold was valued at USD3,361.29, up from USD3,347.01 per ounce on Monday evening.

As for Tuesday’s economic calendar, at 1430 CEST, US CPI inflation data is due. Later in the afternoon, several Federal Reserve members are scheduled to speak.

At 2230 CEST, US crude oil inventory data will be released.

By Michele Cirulli, Alliance News Reporter

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