European Markets Expected to Rebound, Spotlight on Iran

(Alliance News) - European markets are expected to open higher on Wednesday, with a session set to reverse the sharp sell-off seen previously when leading indices were swept by heavy selling.

Yesterday, the Mib closed down 3.9% at 44,468.46 points, the Mid-Cap fell 4.0% to 56,260.31, the Small-Cap contracted by 3.4% to 34,762.38, and the Italy Growth ended down 2.5% at 8,403.63 points.

London's FTSE 100 closed down 2.8%, Paris' CAC 40 retreated 3.5%, while Frankfurt's DAX 40 lost 3.6%.

Investor attention is focused on tensions in the Middle East, but especially on speculation about how long the standoff between Iran and the USA may last and the potential direct impact on the Strait of Hormuz.

IG futures are pointing to a session in the opposite direction today: the Mib is forecast to rise by 0.1% or up 50.5 points, the CAC 40 is expected to gain 0.2% or up 19.8 points, the DAX 40 is seen up 0.2% or 37.5 points, and the FTSE 100 is projected to increase 0.2% or up 21.7 points.

Back in Milan, on the main board of Piazza Affari, on Tuesday Lottomatica ended up 3.3%. The company on Tuesday released consolidated draft financial statements, reporting turnover of EUR44.70 billion, up 14% from EUR39.2 million in 2024, driven by online growth which reached 22% for the year, settling at EUR945.5 million.

Total net profit for 2025 was EUR186 million compared to EUR101.2 million in 2024. The board resolved to propose to shareholders to allocate EUR110.7 million for a dividend of EUR0.44 per ordinary share, up from EUR0.30 paid last year.

Recordati also performed well, the only other stock to close higher, with a 1.4% increase.

Nexi – down 2.9% – and Google Cloud announced Tuesday the signing of a Memorandum of Understanding to develop next-generation digital commerce infrastructure, focusing on agentic commerce, a model where artificial intelligence agents autonomously manage the purchasing process and execute secure payments based on received authorizations.

Eni – down 1.6% – announced Tuesday that Plenitude, through its subsidiary Plenitude On The Road, has signed a strategic partnership with Pininfarina – down 5.3% on the small-cap – aimed at transforming the design of areas hosting its electric vehicle charging infrastructure.

UniCredit and Intesa Sanpaolo, which saw the highest trading volumes, fell by 4.6% and 5.0% respectively.

Fincantieri, down 4.8%, announced Tuesday it had secured an order from Viking to build two expedition cruise ships. In addition, the two companies signed an agreement for an option on two ocean-going vessels. The total value of the agreements is considered "very significant," i.e., over EUR2 billion.

Among other decliners, Brunello Cucinelli dropped 5.6% to EUR74.20. The stock hit a new 52-week low during the session at EUR73.14 per share.

A2A, Italgas and Moncler closed at the bottom of the basket, down 6.1%, 6.3%, and 6.5% respectively.

On the Mid-Cap, Ariston Holding plunged double digits, losing 19%. The company reported it closed 2025 with net profit of EUR132.4 million compared to EUR2.5 million in 2024, while adjusted net profit stood at EUR112.9 million from EUR89 million as of December 31, 2024. The company said it has proposed a dividend of EUR0.10 per share, up from EUR0.08 in 2024.

Among the few risers on the secondary list, PharmaNutra ended up 2.1%, rebounding from previous losses. The company announced Tuesday it had signed a new distribution agreement for France and Switzerland with French multinational PiLeJe, a leader in the nutraceutical market.

Selling hit MAIRE, down 9.1% and marking its third consecutive declining session. The company will announce its 2025 results tomorrow.

Banca Generali was also down, falling 2.9% with trading exceeding EUR23 million.

On the Small-Cap, Gas Plus posted a strong performance, soaring 10% to EUR7.50. The stock set a new 52-week high during trading at EUR7.64.

Among the most traded stocks by value at the bottom of the list, doValue dropped 7.3% while Trevi Finanzia Industriale fell 14%.

Tesmec – down 10% – on Tuesday launched the new Re.M – Remote Monitoring App, completely redesigned to ensure real-time visibility, faster decision-making, and a smoother user experience thanks to a modern interface.

Among SMEs, ICOP saw good buying, up 0.9%, after announcing yesterday it closed 2025 with consolidated net profit of EUR31.9 million, up from EUR17.3 million in 2024. The board will propose a dividend of EUR0.14 per share.

Eprcomunicazione – flat at EUR1.44 – announced Tuesday it had signed a contract with a major national labor confederation for the provision of event organization services, production of institutional materials, and creative support.

Kruso Kapital ended down 1.8%. The company closed 2025 with consolidated net profit of EUR8.6 million, up 95% from EUR4.5 million in 2024.

In New York, the Dow fell 0.8% to 48,501.27, the Nasdaq dropped 1.0% to 22,516.99, while the S&P 500 posted a 0.9% loss at 6,816.63 points.

On the currency front, the euro is trading at USD1.1617 from USD1.1602 from USD1.1678 on Monday and Tuesday at the close of European equities, while the pound is at USD1.3335 from USD1.3326 last night.

Among commodities, Brent is trading at USD84.02 per barrel from USD82.42 per barrel Tuesday night, while gold is valued at USD5,165.06 per ounce from USD5,112.86 per ounce the previous day.

As for the macroeconomic calendar, in Europe, at 0915 CET Spain will publish the services PMI. At 0945 CET Italy releases the services and composite PMIs, followed at 0950 CET by France and at 0955 CET by Germany.

At 1000 CET Italy publishes the unemployment rate while at the same time the eurozone releases the services and composite PMIs. At 1030 CET, it's the UK's turn for PMIs.

At 1100 CET Italy will announce GDP, while from the Eurozone come unemployment and producer price data.

In the afternoon, at 1300 CET, the US is expected to release the 30-year MBA mortgage rate and mortgage applications.

At 1430 CET, a speech by ECB's Luis de Guindos is scheduled.

At 1545 CET, the US services and composite PMIs are expected.

The day closes at 1630 CET with US crude oil and weekly EIA refined product inventories.

Among Piazza Affari companies, results are expected from Amplifon, Banca Generali, Campari, Intercos, MAIRE, Masi Agricola, Nexi, and Snam.

By Michele Cirulli, Alliance News reporter

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