European markets mixed as Lovaglio retains control of MPS

(Alliance News) - Major European markets closed Wednesday's sessions mostly in the red, with the exception of Frankfurt, which posted a modest gain. The FTSE MIB remained largely flat.

Geopolitical tensions surrounding the conflict between the US, Israel, and Iran remain a focal point, although Donald Trump expressed optimism regarding a swifter-than-expected end to the hostilities.

In February, industrial production in the Eurozone rose by 0.4% compared to January, according to preliminary estimates released by Eurostat. This figure marks a reversal from the previous month, which saw a 0.8% decline.

On an annual basis, however, the outlook remains subdued. Compared to February 2025, industrial production in the euro area fell by 0.6%.

The FTSE MIB closed with a fractional loss at 48,155.82 points, the Mid-Cap shed 0.3% to 57,408.28, the Small-Cap gained 0.4% to 34,531.30, and the Italia Growth index posted a positive performance of 0.2% at 8,713.26.

Performance across other European hubs was mixed: the CAC 40 fell 0.6% and the FTSE 100 dropped 0.5%, while the DAX 40 edged up 0.2%.

In Milan, the session was dominated by the board elections at MPS, which ended the day up 4.7%. Luigi Lovaglio remains at the helm of Montepaschi after securing a majority at the shareholders' meeting for the renewal of the board of directors.

Support from Banco BPM and Delfin proved decisive in shaping the outcome. The market largely backed the outgoing board's slate, in line with recommendations from proxy advisors. The new board comprises eight directors from the majority list and seven from the minority lists.

Fincantieri, which saw daily gains of 0.7%, announced that its US subsidiary has been awarded an initial USD30 million contract for material procurement and engineering activities related to the first four vessels of the Medium Landing Ship program.

Telecom Italia, up 0.8%, announced on Wednesday that its shareholders' meeting authorized a buyback plan for up to 700 million ordinary shares, with a total value of EUR400 million.

Stellantis, finishing 1.8% higher, reported estimated first-quarter deliveries of nearly 1.4 million vehicles, showing growth across all regions. The company stated that deliveries reached 1.36 million units in the three months to March 31, a 12% year-on-year increase from 1.22 million the previous year.

A major banking consortium is taking shape to support CVC Capital Partners' bid for Recordati, which rose 1.8%. Mediobanca, Goldman Sachs, Jefferies, JPMorgan, and Deutsche Bank are involved as both advisors and financiers for the EUR10.9 billion deal for the Italian pharmaceutical company.

Regarding banking consolidation, UniCredit - which saw a 0.2% contraction - is reportedly ready to drop its appeal against the TAR ruling that halted its takeover bid for Banco BPM (up 2.9% at the bell). According to la Repubblica, the bank had initially decided last November to turn to the Council of State to challenge the Lazio administrative court's decision, which in July had only partially upheld the appeal against "Golden Power" restrictions imposed by the government.

Nexi led the gainers with a 5.8% jump, while Inwit trailed the pack, falling 3.4% to EUR7.23 per share.

On the Mid-Cap index, Minister Urso clarified the reasons for exercising Golden Power in the Pirelli case, which closed down 1.9% at EUR5.915. "What is most important for all Pirelli shareholders, workers, and the company," the minister commented, "is that they have been able to preserve their operations in the most promising market, the USA, and thus compete effectively with cutting-edge technology in global competition."

Piaggio & C. finished the session up 2.7% after announcing that its board has approved a new share buyback plan for 27 million ordinary shares, with a maximum value set at EUR41.5 million.

BFF Bank was the day's top performer, rising 3.0% to EUR1.89 per share, while Acea dropped 2.7% to EUR22.74.

On the Small-Cap index, IGD SIIQ - down 0.2% at the close - finalized a contract fixing energy purchase prices for 2027 at an average of EUR97 per MWh for 80% of its owned portfolio's requirements. This value is EUR2 lower than the price set for 2026 (EUR99 per MWh for 73% of requirements).

The board of SIT - which rose 0.7% - reported a net profit of EUR1.3 million, an improvement over the EUR31.6 million loss recorded in 2024. Consolidated revenues reached EUR319.1 million, up 6.5% year-on-year and 7.8% at constant exchange rates.

Triboo announced on Wednesday that it closed 2025 with a loss of EUR2.3 million, narrowing from the EUR11.2 million loss in 2024. The stock fell 2.5%.

Bastogi, down 4.3%, announced that its board approved the results for the year ending December 31, 2025, reporting a profit of EUR17.8 million, up from EUR6.9 million in 2024. Total revenues were EUR63.9 million, compared to EUR62.3 million in the previous twelve months.

On the Italia Growth market, SG Co closed the first quarter with consolidated turnover of EUR20.9 million, up from EUR14.1 million as of March 31, 2025. The contracted order backlog stands at EUR9.6 million, up from EUR4.8 million in Q1 2025. The stock rallied 8.9%.

Smart Capital, Smart4Tech, CrowdFundMe (down 2.0%) and WeAreStarting announced that the Prime Minister's Office has ruled that the merger of Smart4Tech and WeAreStarting into CrowdFundMe does not fall under Golden Power regulations.

Casta Diva Group achieved first-quarter revenues of EUR25.3 million, up 6.8% from EUR23.7 million in the same period of 2025. The order backlog stands at EUR43.9 million, in line with the previous year. The stock fell 6.4%.

Telesia reported a net profit of EUR550,000 for 2025, reversing a loss of EUR190,000 in 2024. Revenues totaled EUR13.9 million, up from EUR13.8 million last year. The stock dropped 8.5% on the junior market.

In New York, the Dow is down 0.3%, the Nasdaq is up 1.0%, and the S&P 500 is gaining 0.4%.

In currency markets, the euro is trading at USD1.1806 from USD1.1798 on Tuesday evening, while the pound is at USD1.3578 from USD1.3572 yesterday.

Among commodities, Brent crude is trading at USD95.46 per barrel, down from USD96.35 yesterday evening, while gold is valued at USD4,797.41 an ounce, down from USD4,801.87.

Thursday's macroeconomic calendar includes China's GDP, industrial production, retail sales, and unemployment rate at 0400 CEST.

At 0800 CEST, GDP and industrial production data will be released in the UK, followed by Italian inflation data at 1000 CEST.

From the US, jobless claims are due at 1430 CEST, with industrial production following at 1515 CEST. Finally, the Federal Reserve's weekly balance sheet will be released at 2230 CEST.

Corporate earnings are expected from Dotstay, EuroCommercial Properties, Fidia, OVS, Pirelli & C, and Tessellis.

By Michele Cirulli, Alliance News reporter

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