June starts with a sell-off; Avio leads the decline

(Alliance News) - Major European markets closed Monday's session lower, weighed down by a return to risk aversion amid renewed geopolitical tensions in the Middle East and rising energy prices.

Investor sentiment was dampened by reports that Iran has allegedly suspended indirect contacts with Washington, fueling fears of a slowdown in the negotiation process and potential repercussions for the stability of the Strait of Hormuz, a critical hub for global crude supplies. The subsequent rise in oil prices reinforced expected inflationary pressures.

Consequently, markets continue to price in a more restrictive trajectory from major central banks. For the ECB, traders are discounting at least two rate hikes by year-end, with a more than 90% probability that the first move will come as early as the next meeting.

Regarding the Bank of England, trading floors are incorporating nearly two rate hikes in 2026, with a first tightening fully priced in for September.

The MIB thus closed the first session of the month down 0.5% at 49,775.16 points.

Among the smaller indices, the Mid-Cap shed 0.5% to 61,903.31, the Small-Cap fell 0.1% to 35,811.00 points, while Italy Growth rose 0.4% to 9,134.48.

The CAC 40 posted a 0.5% loss, the DAX 40 fell 0.4%, while the FTSE 100 shed 0.7%.

On the blue-chip index, Avio closed down 8.5%, following a 1.8% decline in the previous session, ending at the bottom of the list.

Leonardo - down 3.6% - announced on Friday that the Romanian Ministry of Interior has ordered two C-27J Spartan tactical transport aircraft under the SAFE (Security Action for Europe) instrument, aimed at strengthening national emergency response, civil protection, and humanitarian support capabilities.

Stellantis - in the red by 2.7% - confirmed its intention to maintain all 14 of its brands, despite recurring speculation about divestments. New CEO Antonio Filosa reaffirmed the strategy outlined in the 2030 plan, which aims to streamline the portfolio by assigning precise industrial and investment priorities. Among the brands that have received less attention in recent years are Lancia and Alfa Romeo, penalized by a limited range and modest investment.

Tenaris closed up 3.2%, following a 0.8% gain in the previous session, with a final price of EUR26.93 per share.

Saipem advanced 2.7%, after a 1.1% drop in the previous session, closing at EUR4.23 per share.

Among Mid-Caps, Caltagirone shed 3.1%, after a 3.2% gain in the previous session.

BFF Bank - at the bottom of the index - closed down 4.8%, reversing course after three bullish sessions.

Brembo - down 1.5% - is transforming the traditional braking system into a platform based on software, sensors, electronics, and artificial intelligence. Executive Chairman Matteo Tiraboschi pointed to Sensify, the group's new intelligent braking system, as one of the most concrete examples of this evolution, emphasizing how the technology can significantly reduce stopping distances and help prevent accidents.

Banco di Desio e della Brianza - down 1.4% - announced on Monday the start of the share buyback program effective June 1, authorized by the shareholders' meeting on April 29 and approved by the Bank of Italy on May 11. The program involves the purchase of up to 3.9 million treasury shares, representing 3% of the share capital, for a maximum total value of EUR40 million.

Among the minority of gainers was Moltiply Group, which saw its price rise 4.6% to EUR32.80 per share. Intesa Sanpaolo confirmed its 'buy' recommendation on the stock with a target price of EUR55.10 following Reuters reports that the group is considering strategic options for its Financial Services Outsourcing division, including a possible total or partial sale.

According to the agency, the company could target a valuation between 11 and 12 times the division's Ebitda, for a value between EUR600 million and EUR700 million.

On the Small-Cap index, Seri Industrial advanced 8.0%, marking its ninth consecutive session closing with a bullish candle.

Tessellis - up 4.6% - announced that the Court of Cagliari has greenlit the lease of certain business branches. As part of the negotiated settlement, the company received a binding offer from Canarbino Spa on March 1 for the valuation of Tiscali Italia Spa's B2C business branch and the 'Tiscali' and 'Linkem' brands, to be implemented through a lease agreement functional to the subsequent purchase of the business branch and brands.

Trevi Finanziaria shed 1.8% to EUR7.02 per share. Alantra maintains a 'buy' recommendation on the stock with a target price of EUR10.00 per share, after the company announced Polaris Capital Management's irrevocable commitment to fully subscribe its portion of the upcoming EUR100 million capital increase. Analysts believe the combination of the capital increase and refinancing offers good visibility on the transaction's outcome before the launch, expected by the end of the first half of 2026, subject to prospectus approval.

Aedes closed slightly below par after a four-session bullish streak.

Among SMEs, ABP Nocivelli shed over 12%, following a more modest 0.8% loss on Friday evening. The company stated on Monday that it is unrelated to the facts reported in press articles regarding the investigation into the Turin Health and Science Park project, reiterating that it 'has always operated in compliance with applicable regulations and the principles of fairness and transparency,' according to the released note.

According to press reports and confirmation from Extraordinary Commissioner Marco Corsini, there are currently no elements that would cause delays in the start of works or interrupt the ongoing procedure.

Espe advanced 3.9% to EUR5.94 per share, following a 0.5% decline on Friday evening.

Casta Diva Group - down 2.3% - announced it closed 2025 with a net profit of EUR710,000, down from EUR975,000 in 2024. Profit attributable to the group stood at EUR618,000 compared to EUR938,000 the previous year.

H-Farm - up 12% - announced it closed the first half of the 2025-2026 fiscal year on February 28 with a loss of EUR2.2 million, an improvement over the EUR5.2 million loss recorded in the first half of 2024-2025. Consolidated management production value was EUR11.8 million compared to EUR20.9 million in the first half of 2024-2025.

In New York, the Dow shed 0.2%, the Nasdaq advanced 0.3%, while the S&P 500 rose 0.1%.

On the currency front, the euro changed hands at USD1.1625 from USD1.1684 on Friday evening, while the pound traded at USD1.3450 from USD1.3438 on Friday evening.

Among commodities, Brent traded at USD96.40 per barrel from USD90.74 on Friday evening, while gold was worth USD4,473.85 an ounce from USD4,478.41 at Friday's close.

On Tuesday's economic calendar, UK mortgage and money supply data are due at 1030 CEST.

In the afternoon, US JOLTS job openings data will be released at 1600 CEST, while a speech by Governor Bailey is scheduled in the UK at 1600 CEST.

No major corporate announcements are expected from companies listed on Piazza Affari.

By Maurizio Carta, Alliance News reporter

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