European markets expected to be negative, focus on macro

(Alliance News) - On Wednesday, the main European indices are expected to be in negative territory, according to IG futures, with the Italian stock market expected to be the worst performer on the Old Continent.

Sentiment worsened after warnings from Wall Street CEOs about a possible correction in the next two years and the downsizing of expectations for a US rate cut in December.

Several macroeconomic data releases are expected during the day.

The FTSE Mib is down 0.7% or 302.5 points after closing Tuesday up 0.1% at 43,262.35.

In Europe, London's FTSE 100 is down 0.3% or 25.0 points, Paris' CAC 40 is down 0.6% or 44.7 points, and Frankfurt's DAX 40 is down 0.5% or 123.0 points.

In Milan last night, the Mid-Cap lost 0.9% to 57,059.00, the Small-Cap rose 0.5% to 36,400.41, while the Italy Growth fell 0.6% to 8,630.51.

On Tuesday, Lottomatica was the best performer on the Milan Stock Exchange's largest cap index, ending the day up 3.3% after publishing its nine-month results on Monday evening, which showed an adjusted net profit of EUR257.4 million.

Ferrari also performed well, closing up 3.2% after publishing its nine-month results. The Prancing Horse company announced on Tuesday that it had closed the first nine months of 2025 with a net profit of EUR 1.22 billion, up 7% from EUR 1.14 billion in the same period of 2024, while diluted earnings per share rose to EUR 6.82 from EUR 6.31. Net revenues grew 8% to EUR 5.34 billion from EUR 4.94 billion.

The Maranello-based company confirmed the upward revision of its 2025 guidance presented at the Capital Markets Day in October, with expected revenues of EUR7.1 billion or more, adjusted EBITDA of at least EUR2.72 billion and a margin of 38.3%, adjusted EBIT of EUR 2.06 billion with a margin of 29%, adjusted earnings per share of at least EUR 8.80, and industrial free cash flow of approximately EUR 1.30 billion.

Enel performed well, up 1.6%, as did FinecoBank, up 1.1%.

Interpump Group, down 0.1%, announced on Tuesday that it had acquired 70% of Borghi Assali's capital through its subsidiary Reggiana Riduttori.

Lagfin reiterated that it had complied with the law and specified that the measure did not affect its control over Campari, which amounts to over 80% of the voting rights. According to Equita, the investigation does not involve the operating company but only the stake held by Lagfin. Campari closed up 1.2%.

Among the decliners, Eni fell 0.3%. On Tuesday, the company announced the completion of the sale of a 20% stake in Plenitude Spa to Ares Alternative Credit funds, affiliated with Ares Management Corporation.

BPER Banca, down 0.9%, announced on Tuesday its intention to proceed with the early redemption of the bond loan denominated "Euro 400,000,000 Fixed Rate Tier 2 Subordinated Callable Notes," originally maturing on November 30, 2030. The repayment date is set for November 30 of this year, five years before the regulatory maturity date.

Sales on Prysmian fell 2.3%, following the previous day's losses, on Stellantis, which lost 2.4%, and on Leonardo, which left 2.0% on the floor.

STMicroelectronics was at the bottom of the main index, down 2.5% to EUR20.78.

On the Mid-Cap, ERG was bought, closing up 1.6%, marking its second consecutive bullish session.

MAIRE, down 0.4%, announced on Tuesday that it had exercised its option to increase the offer for its "Senior Unsecured Sustainability-Linked Notes due 2030" bond, after reaching EUR200 million in subscriptions at the start of the first day of placement, equal to the minimum amount envisaged. The company decided to increase the offer amount by a further maximum of EUR 75 million in response to strong demand, in agreement with Equita SIM, acting as placement agent.

Sales on Salvatore Ferragamo, which fell 1.5% to EUR6.745. Barclays has meanwhile raised its target price to EUR5.10 from the previous EUR3.50.

At the bottom of the secondary market, Avio closed down 3.3%, after the positive sign of the previous day.

On the Small-Cap index, Industrie De Nora closed the session sharply higher, posting a 17% gain. The company announced on Tuesday that it had closed the first nine months of 2025 with an adjusted net profit of EUR 64.5 million, up 22% from EUR 52.8 million in the same period of 2024.

Softlab also saw buying, rising 2.8% after gaining 3.6% in the previous session.

Landi Renzo ended up 2.6%, closing bearish for the sixth consecutive session.

At the bottom of the list, Itway fell 4.1%, while Met.Extra Group closed down 3.6%.

Among SMEs, Telesia advanced, rising 1.8% after gaining 1.2% the previous day, with a price in the EUR1.77 range.

Energy Time, up slightly by 0.5%, announced that it had signed a contract with a major multinational player to provide executive design services and install a ground-mounted photovoltaic system with tracker technology.

Mare Group, up 2.5%, announced that the Council of Ministers has authorized the group's acquisition of Rack Peruzzi.

At the bottom of the alternative list, Riba Mundo Tecnologia lost 12%.

In New York on Tuesday evening, the Dow closed down 0.5% at 47,085.24, the Nasdaq fell 2.0% to 23,348.64, while the S&P 500 lost 1.2% to 6,771.55.

In Asia, the Nikkei closed down 2.5%, the Shanghai Composite ended up 0.2%, while the Hang Seng lost 0.4%.

On the currency front, the euro traded at USD 1.1483 from USD 1.1490 at Tuesday's stock market close, while the pound traded at USD 1.3020 from USD 1.3045 on Tuesday evening.

Among commodities, Brent crude traded at USD64.38 per barrel, down from USD64.47 per barrel at Tuesday evening's close, while gold was worth USD3,965.12 per ounce, down from USD3,966.70 per ounce on Tuesday evening.

Wednesday's macroeconomic calendar includes German factory orders at 0800 CET in the eurozone, followed by French industrial production at 0845 CET.

At 0915 CET, a series of data on services PMIs in Europe will be released: Spain will release its services PMI, followed by Italy at 0945 CET with its composite and services PMIs, while the corresponding French indices will be released at 0950 CET.

At 0955 CET, it will be Germany's turn, with the release of the composite and services PMI.

At 10:00 CET, UK car registration data and Italian retail sales data will be published. The composite PMI and services PMI for the eurozone are also scheduled for release at the same time.

At 10:30 a.m. CET, the UK will release its composite PMI and services PMI.

In the afternoon, at 1300 CET, the US will release its 30-year MBA mortgage rate and weekly mortgage applications, followed at 1500 CET by consumer confidence data for the eurozone.

At 4:00 p.m. CET, investors will look to the US for the release of the ISM non-manufacturing index, while at 4:30 p.m. CET, it will be the turn of the EIA report.

The day will end at 1710 CET with a speech by Breeden of the Bank of England.

Among the companies listed on the Italian stock exchange, the accounts of Anima Holding, Banca Generali, Banca Popolare di Sondrio, BPER Banca, Buzzi, DiaSorin, Leonardo, Mediobanca, Snam, Telecom Italia, and six other companies are expected.

By Antonio Di Giorgio, Alliance News reporter

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