Investors remain unsettled by persistent geopolitical tensions, with mounting fears that the Strait of Hormuz could remain blocked beyond June, depleting global reserves and plunging the world into a full-scale energy crisis.
Brent crude futures extended their gains, trading above 109 dollars per barrel.
On the macro front, bond yields are climbing on inflation concerns, fueling speculation over potential interest rate hikes.
Furthermore, a trader noted that the market is being influenced today by May's technical expiries, adding to the volatility.
Around 12:50 CET, the FTSE Mib index was down 1.60% at 49,251 points, after closing yesterday at 50,050 points - just a whisker away from the 50,108 record high reached on March 6, 2000, at the height of the dot-com bubble.
Today's stock highlights
** Banks are retreating, with the sector index down over 2%, weighed down notably by INTESA SANPAOLO, which lost 2.6%, and UNICREDIT, down 1.6%.
** Profit-taking also hit STM, which shed 4.7% following a recent rally and repeated record highs driven by the surge in the AI-related sector.
** In the luxury segment, FERRAGAMO collapsed 14% following first-quarter results released after yesterday's close, which showed declining revenues, albeit in line with expectations. The stock had surged yesterday ahead of the data and is now falling victim to profit-taking. In its daily note, Equita pointed out that the stock is 'near all-time highs and among the sector's best performers year-to-date'.
** Outside the main index, FERRETTI also struggled, losing over 7% following the postponement of its board meeting for quarterly results, following the appointment of a new board at yesterday's shareholders' meeting.
** ERG showed significant strength, rising 3.5% after Q1 results showed improved net profit and operating margins, supported by increased installed capacity and a recovery in European wind levels, which led to a significant boost in energy production.
** Conversely, the rest of the utilities sector is down, with A2A slipping 2.1% and ENEL falling 1.6%.
** Finally, TECHNOPROBE soared by around 30% to new record highs of 26.9 euros following results driven by the AI boom. Equita wrote that the results and guidance 'smashed market expectations'.
'The new 2026 targets significantly exceed the previous 2027 goals, leading us to a massive upward revision of estimates (for 2026-28, on average, revenue +28%, Ebitda +55%, Eps +60%)', Equita stated, adding that there is room for further upside. The price target was raised by 33% to 28 euros, and the 'buy' rating was confirmed, the report said.
(Giancarlo Navach, editing Gianluca Semeraro)
