(Alliance News) : The FTSE MIB closed higher on Wednesday, reaching new all-time highs as market sentiment remained buoyed by a healthy appetite for risk.

Investors continue to monitor diplomatic developments between the U.S. and Iran, specifically the prospects of an agreement that could facilitate the reopening of the Strait of Hormuz and alleviate energy-related tensions.

However, the primary focus remains on the Federal Reserve meeting concluding this evening. Market consensus expects interest rates to remain unchanged, with all eyes on the forward guidance provided by the U.S. central bank.

Specifically, traders will analyze the updated "dot plot" to gauge the FOMC members' stance on the future path of monetary policy.

Regarding governance, several observers believe that the new Chairman, Warsh, may not yet present his own economic and rate projections during his first meeting, thereby limiting his immediate impact on the FOMC's aggregate forecasts.

Against this backdrop, the MIB advanced 0.1% to 52,595.23 points, hitting an intraday high of 52,600.32 points. The Mid-Cap closed up 0.2% at 65,087.21, the Small-Cap fell 1.4% to 36,281.01, and Italy Growth gained 0.2% to 9,177.71 points.

The CAC 40, the only major European index in the red, slipped 0.2%, while the DAX 40 and the FTSE 100 both gained 0.1%.

In Milan, Saipem rose 2.9% to €4.73 per share, recovering from a 4.7% loss in the previous session.

Banco BPM climbed 2.9% to €15.52 per share, finishing as the top performer among blue chips. No operational decisions emerged from the lengthy board meeting, which continues to evaluate options following Intesa Sanpaolo's exchange offer for MPS. The bank, led by Giuseppe Castagna, still has several months before the Intesa deal is expected to launch in September or October, and remains watchful of developments in Siena.

The challenge for the Milan-based bank appears complex given the scale of the transactions involved. Banco BPM has a market capitalization of approximately €22.7bn, while Intesa's offer values MPS at over €32bn. According to market estimates, a merger between Banco BPM and MPS would generate synergies of approximately €1.1bn, compared to the €2.9bn expected from Intesa's proposed integration.

UniCredit shares advanced 2.4% to €79.57, marking its fourth consecutive bullish session.

Leonardo rose 1.2%. The government has authorized, through the exercise of "Golden Power" and specific requirements, a joint venture between Leonardo and Turkey's Baykar for the development and production of next-generation drones, Il Messaggero reported Wednesday. The deal involves equal stakes for both groups and will allow Leonardo to strengthen its presence in a market the company estimates could be worth approximately €100bn over the next decade, the newspaper added.

DiaSorin fell 2.8% to €64.56 per share. Deutsche Bank downgraded the stock to "sell" from "hold" and lowered its price target to €58.00 from €62.00, arguing that the market is underestimating the risk of a downward revision to 2026 guidance and pricing in overly optimistic expectations for the medium-term growth of the LIAISON NES platform.

In a note by analyst Jan Koch, the bank highlighted that consensus expectations do not fully reflect the competitive pressures characterizing the molecular diagnostics segment, nor a more gradual rollout of the NES platform's installed base than currently anticipated by the market.

In the mid-cap segment, BFF Bank performed well, rising 7.1%. Notably, Citadel Advisors, D. E. Shaw & Co., Marshall Wace, Two Sigma Investments, and Walleye Capital all reduced their short positions on the stock.

Technoprobe gained 3.8% to €37.34, hitting a new 52-week high of €37.72 during the session.

MAIRE, which fell 0.3%, announced Wednesday that Nextchem, through its subsidiary MyRechemical, was awarded a licensing agreement with Sustaero GP for a biomass-to-Sustainable Aviation Fuel project in Canada. Nextchem will license its proprietary NX Circular technology for the biomass-to-syngas section of the plant, the initial stage of the production process.

Brembo, down 2.9%, announced Wednesday that it has signed a joint venture with Ningbo SAFE Brakes Systems to create a new company, BRSF Active Safety Solutions, dedicated to producing ABS systems for the Indian motorcycle market.

Salvatore Ferragamo, at the bottom of the list, fell 4.0%, turning lower after two bullish sessions.

On the Small-Cap index, Sabaf rose 3.2% to €12.75 per share, following a 2.8% contraction the previous day.

Abitare In climbed 3.3% to €2.81, after a 0.7% dip yesterday. Based on a single analyst on the MarketScreener platform, the stock has a price target of €5.00, suggesting it is significantly undervalued.

FILA, down 3.8%, announced Wednesday the successful completion of an accelerated bookbuild of 4.2m shares in its Indian subsidiary DOMS Industries, representing 7.0% of the share capital, at a price of INR2,200.34 per share, or approximately €20.07. The transaction generated gross proceeds of approximately €85.3m.

Gas Plus fell 4.2% to €5.51 per share. Banca Akros confirmed its "buy" recommendation and €8.00 price target, believing the market has yet to fully reflect the group's sensitivity to gas prices.

Among SMEs, Compagnia dei Caraibi showed strength, surging 21% in its fourth consecutive bullish close.

Cofle gained 5.3% to trade around €2.08. Banca Profilo maintained its "buy" rating and €5.00 price target, citing signs of improving profitability and cash generation.

Giocamondo Study, up 2.3%, announced Tuesday that it has finalized the acquisition of 51% of Destinazione Lingue, an educational tour operator based in Udine specializing in language stays and international training. The move is part of a strategy to strengthen the group's presence in Northern Italy and develop a national platform for international education and student mobility.

ESI, down 0.9%, announced Wednesday that it has signed a Letter of Intent and Head of Terms with a leading international renewable energy operator for Light EPC contracts valued at approximately €4.5m. The agreement covers two renewable plants with a total capacity of 8 MWp: a 5.3 MW plant in Villasanta (Monza and Brianza) and a 2.8 MW plant in Lamezia Terme (Catanzaro).

In New York, the Dow is up 0.3%, the Nasdaq is down 0.2%, while the S&P 500 is hovering just below flat.

In currency markets, the euro is trading at $1.1593, down from $1.1605 on Tuesday evening, while the pound is at $1.3396, down from $1.3423.

In commodities, Brent crude is trading at $79.49 per barrel, down from $79.60 on Tuesday evening, while gold is valued at $4,359.72 per ounce, up from $4,326.37 at Tuesday's close.

Thursday's macroeconomic calendar includes UK unemployment data at 0800 CEST. Also from the UK, the Bank of England will announce its interest rate decision at 1300 CEST.

At 1430 CEST, U.S. jobless claims will be released, followed by the Federal Reserve's weekly balance sheet and reserves at 2230 CEST.

No major corporate announcements are expected from Piazza Affari companies.

By Maurizio Carta, Alliance News reporter

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