European markets rally as MIB clears 49,400 mark

(Alliance News) - Major European stock exchanges continued to trade higher on Wednesday, bolstered by robust earnings and prospects of de-escalation in the Middle East. This follows Donald Trump's move to halt Operation Freedom in the Strait of Hormuz, citing progress in negotiations.

On the macroeconomic front, preliminary data from Eurostat showed that the Eurozone producer price index rose more than expected in March, reaching 2.1% year-on-year, compared to the 1.8% forecast by FxStreet and following a 3.0% decline in February. On a monthly basis, the index rose 3.4% after a 0.6% drop in February.

Domestically, Italian retail sales returned to growth in March, posting a 0.8% month-on-month increase after February's 0.1% decline. Meanwhile, Italy's services sector remained largely stagnant in April, as businesses grappled with mounting cost pressures.

Against this backdrop, the MIB rose 1.8% to 49,432.93 points, the Mid-Cap gained 2.7% to 59,574.14, the Small-Cap climbed 2.0% to 35,325.84, and Italy Growth edged up 0.5% to 8,914.54 points.

Other European indices were also in the green: the CAC 40 rose 2.5%, the DAX 40 gained 2.4%, and the FTSE 100 climbed 2.2%.

In Milan, Leonardo - up 2.7% - closed the first quarter of 2026 with an adjusted net profit of EUR184 million, a 60% increase from EUR115 million in the same period of 2025. Reported net profit, however, fell to EUR184 million from EUR396 million due to extraordinary items recorded in the prior-year period.

Lottomatica surged 6.5% after reporting first-quarter results, with profit reaching EUR69.3 million, a sharp increase from the EUR51.5 million recorded between January and March 2025. Revenue stood at EUR602.3 million, up 3.0% from EUR585.7 million in the first quarter of the previous year.

Inwit - up 0.8% - has initiated legal action against Telecom Italia's termination of their master service agreement. Telecom Italia shares also rose 0.8%. Inwit is seeking an injunction to suspend the effects of the withdrawal, which is scheduled for 2030. According to MF-Milano Finanza on Wednesday, 'the towerco reportedly filed the request for interim relief last week to stay the termination of the MSA exercised by the operator led by CEO Pietro Labriola'.

Regarding banking consolidation, Milan prosecutors may soon reopen their investigation into the MPS-Mediobanca case. The probe involves allegations of market manipulation and obstruction of supervisory activities against Francesco Gaetano Caltagirone, Delfin and EssilorLuxottica chairman Francesco Milleri, and Montepaschi CEO Luigi Lovaglio.

Magistrates suspect a coordinated effort among several parties during the privatization of MPS and the attempted takeover of Mediobanca, with the ultimate goal of influencing Generali. MPS shares traded up 1.3%, while Mediobanca rose 1.5%.

Banco BPM CEO Giuseppe Castagna stated that the bank is closely monitoring consolidation opportunities in the sector, evaluating both large-scale and targeted M&A deals in a landscape that the group believes offers further room for mergers. BPM shares rose 3.4%.

Amplifon - leading the blue-chip index with a 17% surge to EUR11.63 - closed the first quarter of 2026 with an adjusted net profit of EUR44.4 million, up 6.7% from EUR41.6 million in the same period of 2025. Revenue reached EUR579.8 million, down 1.4% from EUR587.8 million in Q1 2025, but up 0.8% at constant exchange rates, supported by 2.2% organic growth.

Eni sat at the bottom of the basket, shedding 4.7% to EUR22.83 per share.

On the Mid-Cap, Banco di Desio e della Brianza - up 4.1% - announced the closing of its voluntary total tender offer for Solution Capital Management SIM Spa, paying EUR240,466.82 for the remaining 52,162 outstanding ordinary shares, representing 2.3% of the share capital.

Ariston Holding, up 2.5%, announced the transfer of 325,382 treasury shares to beneficiaries of its 2023 long-term incentive plan. Beneficiaries include Executive Chairman Paolo Merloni, who was granted 17,830 ordinary shares, and CEO Maurizio Brusadelli, who received 103,678 ordinary shares.

Credito Emiliano - up 4.1% - reported a consolidated net profit of EUR139.5 million for the first quarter of 2026, compared to EUR229.3 million in 2025. Excluding the extraordinary gain from the sale of its merchant acquiring business in the prior year, the result represents a 2.9% increase from EUR135.6 million.

MAIRE also saw buying interest, trading up 4.1% at EUR16.60 per share.

Zignago Vetro gained 3.5% after closing the first quarter of 2026 with a group net profit of EUR6.2 million, a triple-digit increase from EUR1.1 million in the same period of 2025. Its margin on revenue rose to 4.3% from 0.7%.

Pirelli & C. - up 3.7% - announced on Wednesday that its plant in Georgia, USA, will be further strengthened through the production of connected tires equipped with Cyber Tyre technology.

Among small caps, Aeroporto Guglielmo Marconi di Bologna - up 5.1% - reported that passenger traffic at the Bologna airport exceeded 1 million in April, a 2.5% increase over the same month in 2025, despite geopolitical uncertainties.

Biesse - up 2.8% - approved the co-option of Stefano Porcellini to its board of directors. During the same meeting, the board appointed Porcellini as Deputy Chief Executive Officer, in addition to his roles as Chief Financial Officer and Investor Relator.

Edison, down 0.2%, received an update from QatarEnergy regarding the ongoing force majeure affecting LNG supplies to the Adriatic LNG terminal. The notice concerns two additional LNG cargoes scheduled for delivery to Italy by early July, adding to the 10 cargoes previously disclosed.

Among SMEs, Next Geosolutions Europe - up 1.6% - announced the successful completion of the review process for its investment program under the 'development contract' instrument, managed by Invitalia on behalf of the Ministry of Enterprises and Made in Italy.

Specifically, Invitalia approved the development contract proposal, granting non-repayable subsidies up to a maximum of EUR9.4 million for an industrial investment project in Campania.

Più Medical signed a binding agreement to acquire 100% of Farmacia Formaggia in Milan for approximately EUR10.8 million. The estimated consideration, funded by the company's existing resources, will be paid in several tranches. The stock traded up 5.8%.

Lemon Sistemi, up 5.2%, signed a contract for the construction of a photovoltaic plant in Sicily featuring a Huawei electrochemical storage system, with a total estimated value of approximately EUR4.3 million.

The board of directors of Confivest, up 0.9%, confirmed Simone Manenti as CEO, renewing his powers for commercial, administrative, and financial management. The board also confirmed Manenti as Investor Relator Manager.

In New York, during the European evening, the Dow Jones gained 0.7% to 49,298.25 points, the Nasdaq rose 1.0% to 25,326.13, and the S&P 500 closed up 0.8% at 7,259.22.

In the currency markets, the euro changed hands at USD1.1770, up from USD1.1706 on Tuesday evening, while the pound traded at USD1.3623, up from USD1.3564 yesterday evening.

Among commodities, Brent crude traded at USD102.42 per barrel, down from USD110.44 on Tuesday evening, while gold was valued at USD4,703.23 per ounce, up from USD4,578.16 yesterday evening.

Wednesday's economic calendar features US mortgage data at 1200 CEST.

At 1200 CEST, focus shifts to US mortgage applications.

By Michele Cirulli, Alliance News reporter

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