Markets gain on de-escalation; Saipem rated "buy"

(Alliance News) - Major European indices opened in positive territory on Wednesday, with Piazza Affari trading around the 48,000-point mark.

The indefinite extension of the ceasefire between the US and Iran is supporting risk appetite, following a day characterized by shifting narratives regarding negotiations and high volatility.

As Michael Brown observes, "the extension effectively represents a significant postponement of decisions, while keeping the market anchored to a de-escalation scenario," helping to stabilize sentiment and favor a recovery in risk assets.

Prior to the announcement, geopolitical uncertainty maintained a cautious tone, supporting oil prices and fueling safe-haven flows into the dollar.

However, statements from the parties appear "more geared toward gaining negotiating leverage than a real re-escalation," a factor that limits market pressure and leaves room for a return of risk appetite. In this context, any equity pullbacks continue to be viewed as buying opportunities.

On the macroeconomic front, UK inflation rose to 3.3% year-on-year in March, reflecting the impact of the war in Iran on fuel costs, according to data published Wednesday by the Office for National Statistics.

Consequently, the FTSE Mib rose 0.2% to 48,005.96, the Mid-Cap advanced 0.2% to 58,471.60, the Small-Cap climbed 0.1% to 35,639.62, while Italy Growth gained 0.2% to 8,792.55.

London's FTSE 100 is up 0.1%, the Paris CAC 40 is posting fractional gains, while the Frankfurt DAX 40 is up 0.3%.

Returning to Milan, on the blue-chip list of Piazza Affari, Saipem surged to the top at the open, advancing 3.6% after announcing first-quarter results on Tuesday. The company stated in a note that these "confirm the quality of the portfolio and the solidity of operational and financial performance."

Specifically, net profit was positive at EUR78 million, up 1.3% from the EUR77 million recorded between January and March 2025. Revenue stood at EUR3.52 billion, compared to EUR3.51 billion in Q1 2025, representing a 0.3% increase.

Prysmian also saw strong buying, up 2.3%, recovering after two consecutive sessions of bearish closes.

Poste Italiane's exchange offer for TIM is not an end point but will be the starting point for the consolidation of the Italian telecommunications market. This was explained by Poste CEO Matteo Del Fante, who emphasized that the operation is the first step in a broader process.

During a parliamentary hearing on the program contract with Mimit, the manager also opened up the possibility of allocating a portion of the new shares to employees as part of the capital increase serving the offer.

TIM is up 1.0%, while Poste Italiane is trading 0.1% higher.

For UniCredit CEO Andrea Orcel, the exchange offer for Commerzbank is at a turning point: without control, the group is ready to pause, as reported by Milano Finanza, citing an interview with Bloomberg TV. After 18 months of attempts, dialogue with Frankfurt has broken down without result.

Rumors, echoed by German politicians and unions, regarding a possible headquarters move to Germany remain on the table, though the bank has denied this, confirming it will remain in Italy.

Orcel indicated that, in the absence of control, UniCredit could pause for 12-18 months, reactivate its EUR4.75 billion buyback, and strengthen capital in view of new transactions.

The Piazza Gae Aulenti stock is down 0.7%.

Selling pressure hit Moncler - down 0.9% - which announced Tuesday that consolidated revenue for the first three months of 2026 reached EUR880.6 million, up 6% from EUR829.0 million in the same period of 2025, representing 12% growth at constant exchange rates.

Among other decliners, Leonardo fell 1.4%, while Avio retreated 2.5%.

At the bottom of the main list, Amplifon opened down 2.6%, with nearly 600,000 shares changing hands.

On the Mid-Cap, Reply performed well, advancing 1.2% to EUR97.05. Berenberg upgraded the stock to "buy" from "hold" with a target price of EUR135.00.

Safilo Group showed strength - up 5.1% - after announcing Tuesday the signing of an exclusivity agreement with Bollé Brands for the acquisition of SPY+ and Serengeti, two US brands active in the outdoor sports and high-end eyewear segments.

BFF Bank slipped after the previous day's gains, losing 1.0% at the opening bell.

On the Small-Cap, among the most active stocks by value, CY4Gate advanced 1.4% while Caltagirone Editore gained 3.6%.

On the other side of the list, Beewize fell 3.4%.

Fidia - down 1.8% - announced Tuesday that it received a conversion request from GGHL for 4 bonds of its convertible bond loan with warrants. The conversion price was set at EUR0.01 per share, resulting in the issuance of 4 million new shares.

Elica - down 1.1% - announced Tuesday at EuroCucina 2026 a new range of induction hobs based on proprietary technology, marking a further step in its expansion strategy in the cooking segment.

Among SMEs, Racing Force started strong - up 4.6% - after reporting Wednesday that Q1 2026 revenue reached EUR24.3 million, an 18% increase from EUR20.6 million in Q1 2025, with growth of approximately 22% at constant exchange rates.

On a broader basis, quarterly growth brings sales for the last nine months up 20% compared to the same period of the previous fiscal year.

Redelfi saw decent buying, up 0.5%, while Misitano & Stracuzzi fell 3.7%.

Otofarma - yet to trade - announced Wednesday that it signed the final purchase agreement for the acquisition of a new production plant in Corsico, in the Milan metropolitan area, completing the closing of the transaction announced in recent months. The total investment amounts to EUR1.5 million.

ErreDue rose 1.7% after announcing Wednesday the signing of an order worth approximately EUR900,000 for the supply of a hydrogen production solution using alkaline technology with a total capacity of approximately 0.5 MW, consisting of two modular units of approximately 250 kW.

Among the laggards on the alternative list, Saccheria F.lli Franceschetti fell 1.5%. The company's board, on Monday evening, approved the management revenue figures as of March 31, recording revenue of EUR5.4 million, up 25% from EUR4.4 million in Q1 2025.

In New York on Tuesday evening, the Dow lost 0.6%, as did the Nasdaq and the S&P 500.

In Asia, the Nikkei closed up 0.4%, the Hang Seng retreated 1.2%, while the Shanghai Composite ended 0.5% higher.

On the currency front, the euro is trading at USD1.1748 from USD1.1747 on Tuesday evening, while the pound is at USD1.3515 from USD1.3506 last night.

Among commodities, Brent crude is trading at USD98.06 per barrel from USD98.16 on Tuesday evening, while gold is valued at USD4,764.66 per ounce from USD4,737.10 last night.

Wednesday's economic calendar includes the German Bundesbank monthly report at 1200 CEST, while at 1300 CEST the focus shifts to US mortgage data.

On Piazza Affari, results are expected from Gismondi 1754, Sicily by Car, and Vantea SMART.

By Antonio Di Giorgio, Alliance News reporter

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