(Alliance News) - Major European stock markets closed in positive territory on Monday, on a day when markets were still affected by concerns about the unfolding conflict in the Middle East.

FTSE Mib closed up 1.2 percent at 27,810.61, Mid-Cap rose 0.8 percent to 39,176.04, Small-Cap rose 0.3 percent to 25,210.61, and Italy Growth ended slightly higher at 8,096.67.

In Europe, London's FTSE 100 closes up 0.6 percent, Paris' CAC 40 ends up 0.8 percent and Frankfurt's DAX 40 rises 0.9 percent.

"Geopolitical risk is back in the spotlight because of tensions between Israel and Gaza, which have escalated into war. Market implications will depend on the extent of the conflict: if its scope remains regional, the market impact is unlikely to last long; if other regional players join the conflict, markets will see it as a proxy for the U.S.-Iran confrontation. In the second scenario, global tensions could escalate and oil supply would be substantially disrupted, as Iranian production has been on an upward trend for much of 2023 and even Saudi production could be put at risk. A weakening of equities and credit along with a rise in rates and commodities would therefore represent the most likely scenario for further escalation," commented the Global Credit Team at Algebris Investments.

"Fed officials have acknowledged the tightening of financial conditions due to rising long-term yields, and according to some this could eliminate the need for further hikes. Contradicting this, last week inflation surprised upward by 0.1 percent, with headline CPI at 3.7 percent annually and core at 4.1 percent. The increase was driven by an upward surprise in safe-haven goods, for which we know, however, that leading indicators point downward, so the underlying picture of easing price pressures remained unchanged. The Fed is scheduled to meet next Nov. 1, and markets are pricing in only a 4 bp or 16 percent probability of a hike."

On the main list in Piazza Affari, UniCredit does best of all, taking the top spot by climbing 2.6 percent, followed by BPER Bank and ERG in the green by 2.3 percent.

Italgas gains 1.4 percent. The company announced Monday that it had completed the acquisition from Veolia Environnement SA Group of the business unit to which the concessions held in Italy in the water sector belong.

For the purchase, the company will be able to pay the Veolia group a total of up to EUR115 million -- in terms of equity value --, partly contingent on the achievement of certain targets of the operating companies.

Recordati - up 0.5 percent - announced the appointment of Milan Zdravkovic as Executive Vice President of Research & Development.

Among the bearish performers are oil-related stocks, with Saipem giving up 1.4 percent and Tenaris dropping 0.7 percent.

Doing worst of all is Telecom Italia, in the red by 6.2 percent. The widely expected submission of the binding offer by KKR does not boost the stock of the former state-owned telephone giant. In fact, it appears to sink it. The decision to separate Telecom Sparkle and the words of Minister Giancarlo Giorgetti, who is very cautious about the success of the deal, weigh heavily.

"The market is trying to decipher the words of the Minister of Economy, marked by the utmost caution, but perhaps also interpreted as a bit cold. During the press conference to present the Manoeuvre 2023, to a question about the offer of the U.S. fund for the network, Giorgetti first called the issue "complex," recalling that in the first instance the board of directors and shareholders' meeting must express themselves. Then he said, "Let's see the final outcome and especially if the proposal will be accepted, otherwise we will think of something else," wrote Francesco Bonazzi, a columnist for Alliance News.

Among midcaps, Salvatore Ferragamo -- up 0.8 percent -- reported that it has been admitted to the collaborative compliance regime.

Iren rises 0.6 percent after announcing Wednesday that, through its subsidiary Iren Ambiente Toscana, it has finalized the acquisition of control of Semia Green, a company active in the circular economy.

The remaining share capital is held by Sienambiente, already a shareholder of Semia Green and in which the Iren group has a 40 percent stake.

On the Small-Cap, Itway closes up 5.9 percent after announcing Monday that it has signed a strategic partnership with One Identity in identity governance.

The Itway group expects revenues of about EUR4 million in the next two years by operating in the banking and insurance, healthcare, energy, education and public administration sectors.

Among SMEs, Almawave closes 7.8 percent in the red, after announcing Monday that Davide Diotallevi is taking over as the group's chief financial officer and investor relations manager today.

Jonix closes 2.3 percent in the red after reporting Friday that it closed the first nine months with revenues of EUR960,000, down from EUR2.0 million in the same period last year.

Revenues from abroad amounted to EUR300,000 from EUR530,000, and revenues from Italy dropped to EUR660,000 from EUR1.5 million.

In New York, the Dow is down 0.3 percent to 33,021.86, the Nasdaq is just above par at 13,222.32, and the S&P 500 is in the red 0.2 percent to 4,248.10.

Among currencies, the euro changes hands at USD1.0549 against USD1.0501 recorded at Friday's European stock close, while the pound is worth USD1.2195 from USD1.2134 on Friday evening.

Among commodities, Brent crude is worth USD90.26 per barrel from USD89.68 per barrel at Friday's close. Gold, on the other hand, trades at USD1,934.75 an ounce from USD1,921.41 an ounce on Thursday evening.

Tuesday's macroeconomic calendar opens at 0630 CEST with the index of activity of industries in the tertiary sector, while at 0800 CEST the UK publishes the index of monthly wages including bonuses, the change in claims for unemployment benefits, and the unemployment rate.

At 1100 CEST from both Germany and the Eurozone comes the ZEW index of German economic conditions and confidence sentiment in Europe.

At 1200 CEST the ECOFIN meeting gets underway.

Overseas, at 1430 CEST comes US retail sales data for September. At the same time from Canada comes inflation.

Still from the U.S., at 1515 CEST data on industrial and manufacturing production for September are released.

Among companies listed on the Italian Stock Exchange, no particular announcements are expected.

By Claudia Cavaliere, Alliance News reporter

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