European markets in the red; Leonardo among gainers, STM slides

(Alliance News) - Major European indices opened in negative territory on Friday, with Piazza Affari falling below the 49,500-point mark.

Inflation fears are mounting alongside expectations of further rate hikes by central banks.

The European Central Bank could tighten monetary policy if high oil prices fuel price pressures, while in the US, bets on a hawkish Federal Reserve move before year-end are accelerating.

Energy price hikes linked to the US-Iran standoff and the effective closure of the Strait of Hormuz are weighing on sentiment.

Consequently, the FTSE Mib shed 1.2% to 49,468.39 points, the Mid-Cap gained 1.2% to 61,237.85 points, the Small-Cap lost 0.3% to 34,829.50 points, while Italy Growth retreated 0.1% to 8,898.38 points.

London's FTSE 100 is down 0.8%, the CAC 40 in Paris shed 0.6%, while the DAX 40 in Frankfurt is down 0.8%.

Returning to Milan, on the blue-chip index of Piazza Affari, Leonardo stands out as one of the few gainers, up 1.6%. The group announced on Thursday that the Peruvian Air Force has ordered an additional C-27J Spartan multi-role transport aircraft as part of its program to strengthen air mobility capabilities, given the complexity of the country's geography, terrain, and the need to reach remote areas.

Buying interest was also seen in Avio, up 0.9% with 100,000 shares changing hands.

DiaSorin also showed strength, gaining 0.4% at the open.

Telecom Italia - marginally in the green - announced on Thursday that Fitch has upgraded the group's rating to 'BB+' from 'BB', confirming a Stable outlook.

Unipol opened 0.9% lower after announcing on Friday that it closed the first quarter of 2026 with a reported consolidated net profit of EUR329 million, up 15% compared to EUR285 million as of March 31, 2025.

Consolidated direct insurance premiums rose to EUR4.81 billion from a normalized figure of EUR4.49 billion as of March 31, 2025, representing 7.1% growth.

Among the laggards, BPER Banca shed 1.7% on the floor with shares pricing at EUR12.422. UBS cut its recommendation to 'neutral' from 'buy' and lowered the target price to EUR12.50 from EUR13.50.

STMicroelectronics sits at the bottom of the main list, down 4.2%, following two sessions closed with bullish candles.

On the Mid-Cap, Technoprobe opened in double digits, marking a 32% rise to EUR36.74 per share. Deutsche Bank raised its target price to EUR35.00 from EUR19.50 with a 'buy' recommendation.

Carel Industries advanced 6.6%. The company announced on Thursday that it closed the first quarter of 2026 with a consolidated net profit of EUR18.4 million, an 82% increase compared to EUR10.1 million in the same period of 2025.

Webuild fell 2.0% despite the group announcing that it has recorded EUR3.0 billion in new orders since the beginning of the year, entirely from low-risk markets.

Of these, approximately EUR1.0 billion includes tenders where Webuild was the preferred or sole bidder. These are joined by initiatives in the energy and water sectors, including the Kwinana gas plant near Perth, Australia, and a wastewater treatment plant in Naples, Italy.

These contracts are supported by a short-term commercial pipeline valued at approximately EUR99 billion, concentrated in developed countries where Webuild has a consolidated presence.

The board of Alerion Clean Power - up 1.6% - approved its first-quarter consolidated results on Thursday, highlighting operational growth driven by increased electricity production.

During the period, operating revenues stood at EUR44 million, up 18% compared to EUR37.3 million in the first quarter of 2025.

Salvatore Ferragamo shares are suspended after a theoretical decline of 12%. On the stock, JPMorgan raised its target price to EUR8.00 from EUR7.50 with a 'neutral' recommendation.

Safilo Group sits at the bottom of the mid-cap list, down 3.2%.

On the Small-Cap, EPH is the top performer at the start, advancing 8.5%.

At the other end of the list, Esprinet shed 5.5% to EUR7.18 per share.

doValue is up 0.6% after announcing on Thursday that it closed the first quarter of 2026 with a consolidated net result, excluding non-recurring items, of negative EUR1.1 million compared to a profit of EUR9.1 million the previous year.

Consolidated gross revenues stood at EUR120.3 million, down 15% compared to EUR141.4 million in the first quarter of 2025. Net revenues decreased by 17% to EUR106.7 million from EUR128.2 million. Managed Gross Book Value stood at EUR132.52 billion compared to EUR135.89 billion at the end of 2025.

Buying interest in EuroGroup Laminations - down 1.1% - which announced on Thursday that it has signed a five-year medium-to-long-term loan for a total amount of up to EUR375 million with a pool of institutions including BNP Paribas Italian Branch, BNL BNP Paribas, Intesa Sanpaolo, UniCredit, Crédit Agricole Italia, Cassa Depositi e Prestiti, Banco BPM, and Deutsche Bank.

The board of Eurotech - down 2.6% - approved its consolidated interim management report as of March 31 on Thursday, closing the period with a group net loss of EUR2.6 million, an improvement compared to the loss of EUR500,000 recorded as of March 31, 2025.

Gabetti - yet to be traded - announced on Thursday that it closed the first quarter with operating revenues amounting to EUR20.7 million, down from EUR27.2 million recorded in the same period of 2025.

The decline, the company explained, is attributable to Gabetti Lab and its Contractor activity, which in the first quarter of 2025 still benefited from work related to the final phase of 'superbonus' related RSA contracts.

Among SMEs, Promotica saw a bullish push - up 3.1% - after announcing on Thursday that it closed 2025 with a consolidated net profit of EUR3.9 million, a 147% increase compared to EUR1.6 million in 2024.

The board of directors will propose an ordinary dividend of EUR0.15 per share to the shareholders' meeting, with the ex-dividend date scheduled for July 13, record date July 14, and payment on July 15.

IDNTT - down 1.2% - announced on Thursday that it closed 2025 with an adjusted net profit up 26% to EUR1.7 million from EUR1.4 million in 2024, while reported net profit fell to EUR547,000 from EUR1.2 million the previous year due to extraordinary and non-recurring components of EUR1.2 million compared to EUR200,000 in 2024.

The board of First Capital - down 0.6% - reviewed its financial position as of March 31 on Thursday, determining a Net Asset Value of EUR98.3 million.

In New York on Thursday evening, the Dow gained 0.8%, the Nasdaq advanced 0.9%, while the S&P 500 rose 0.8%.

In Asia, the Nikkei closed 2.0% in the red, the Hang Seng is down 1.6%, while the Shanghai Composite fell 1.0%.

On the currency front, the euro is trading at USD1.1642 from USD1.1675 on Thursday evening, while the pound is trading at USD1.3369 from USD1.3480 yesterday.

Among commodities, Brent is trading at USD107.21 per barrel from USD105.03 per barrel on Thursday evening, while gold is worth USD4,585.67 per ounce from USD4,686.15 per ounce at yesterday's close.

On Friday's economic calendar, Italy's consumer price index arrives at 1000 CEST. At 1200 CEST, Spanish consumer confidence will be released.

Focus shifts to the US starting at 1515 CEST with industrial production data.

In Piazza Affari, quarterly reports from eight companies are expected, including ERG and Ecosuntek.

By Antonio Di Giorgio, Alliance News reporter

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