Stock Exchange, Europe cautious amid Middle East and quarterly reports. Campari plunges in Milan

(Il Sole 24 Ore Radiocor) - After a modestly upbeat start, the European stocks chose caution and proceeded in an alternating current, while investors monitored developments in the Middle East. All eyes are on the new framework agreement to restart negotiations between the US and Iran that aims to end the conflict, but above all to reopen the Strait of Hormuz, with talks that could start next week in Islamabad. "I think there's a very good chance that it will end" the war, President Trump told the public network Pbs, however, "if it doesn't end, we're going to have to go back to carpet bombing," he warned.

This is how Milan's FTSE MIB is looking for direction, held back by sharp declines in Campari, Tenaris and other oil stocks, the CAC 40 of Paris, the DAX 40 of Frankfurt, the IBEX 35 of Madrid, the AEX of Amsterdam and the FTSE 100 of London. Against this backdrop, the market's focus is also on the quarterly earnings season, which continues in full swing.

Rain of quarterly reports at Piazza Affari. Campari tumbled to the bottom of the list with a drop of more than 11 per cent after reporting first-quarter results that saw sales fall below consensus estimates. Also weighing down was Tenaris, which despite reporting a better-than-estimated quarter, is suffering from a change at the top with the appointment of Gabriel Podskubka as its new CEO. Also weak was Bper Banca , following the release of results. Pink jersey for Brunello Cucinelli , which topped the list with a 3% rise. Purchases also rewarded Poste Italiane , which posted a record first quarter and revised upwards its 2026 targets, and Telecom Italia although it released accounts in the red, while the market seems to be ignoring the damages claimed by Sky for Serie A rights. Investors are eyeing the integration of the two companies, with the opas on Tim expected by the third quarter of 2026. Also doing well was Nexi , after the accounts and confirmation of targets for the rest of the year. Also testing the accounts were Iveco Group , with the closing of the Tata Motors IPO postponed to the third quarter, Enel , Terna and Finecobank .

Oil prices rose again after sharp declines on the eve of the meeting, with investors monitoring developments in the Middle East. Brent oil futures expiring in July gained 0.6 percent to $101.88 a barrel, while those on Wti for June gained 0.55 percent to $95.6. This is a likely technical recovery after overnight's drop, which had been boosted by optimism over a near-term agreement between the US and Tehran. However, note analysts at Anz Research, 'The situation remains very fluid and intraday volatility is likely to remain high until more substance emerges'. European natural gas also rose slightly, gaining 0.8 per cent to EUR44.28 per megawatt-hour on the TTF platform in Amsterdam.

Government bond yields fell further, thanks to the general optimism of financial markets on the hope that a US-Iran agreement will put an end to the ongoing conflict and soon bring the tensions on energy prices and, consequently, on inflation, under control. The yield on the benchmark 10-year BTp, maturing on 1 February 2036, stood at 3.70% after falling on the eve of the event from 3.87% to 3.73% at the close. The spread between Btp and Bund remained stable at 74 basis points, in line with the previous close.