Oil surge drags European markets into the red

(Alliance News) - Major European indices opened in deep red on Monday, following heavy losses in Asia and weighed down by the spike in oil prices.

The jump in oil prices above USD100 per barrel and the closure of the Strait of Hormuz are fueling fears of a global energy crisis with potential repercussions for growth and financial markets.

"Investors woke up to an oil crisis. It may have taken a week, but oil prices have finally broken the USD100 threshold that everyone expected if Hormuz were closed," observes IG analyst Chris Beauchamp, adding that the market now faces "the biggest crisis since Liberation Day and probably since the Covid pandemic."

Geopolitical tensions are already weighing on markets and increasing macroeconomic risk.

"We are now looking at a much higher probability of a recession in the US and globally as inflation accelerates," Beauchamp explains, noting that any coordinated release of oil reserves might only offer temporary relief, "a limited response compared to the loss of production caused by the closure of Hormuz and the halt of output in the region."

On the European macroeconomic front, German factory orders plunged 11% month-on-month in January, far worse than market expectations of a 4.3% decline, and following a downwardly revised 6.5% increase the previous month. The data was published Monday by the Federal Statistical Office.

The decline marked the first contraction since August, driven largely by a 39% drop in fabricated metal products, after significant orders in the previous month had created a high base.

Consequently, the FTSE Mib is down 2.1% at 49,867.55, the Mid-Cap is in the red by 2.1% at 54,976.12, the Small-Cap yields 1.6% at 34,056.17, while Italy Growth retreats 1.0% to 8,390.43.

London's FTSE 100 is in the red by 1.8%, Paris's CAC 40 yields 2.6%, as does Frankfurt's DAX 40.

Returning to Milan, on Piazza Affari's blue-chip list, Nexi climbed to the top at the opening, up 4.3% with over 6 million shares already traded.

Strength for Lottomatica, up 1.6% at EUR25.32. Goldman raised its target price on the stock to EUR29.00 from EUR27.50 with a 'buy' recommendation.

Buying interest in Eni, in the green by 0.3% with over 2 million shares changing hands.

Intesa Sanpaolo and UniCredit, the stocks with the highest trading value, fell 3.4% and 3.8% respectively.

FinecoBank - down 2.1% - announced Friday that it purchased 6,000 of its own ordinary shares on March 4, thus closing the buyback plan serving the PFA incentive system. The shares were acquired for a total value of EUR117,420.

Brunello Cucinelli opened trading down 2.9% at EUR72.98. Bernstein cut the target price to EUR108.00 from EUR121.00 with an 'outperform' rating.

Among other decliners, Banca Monte dei Paschi di Siena fell 3.8%, while Mediobanca retreated 4.0%.

At the bottom of the main list, Prysmian started the session trading down 4.8% at EUR94.30 per share. Goldman raised the target price on the stock to EUR110.00 from EUR105.00 with a 'buy' recommendation.

On the Mid-Cap, Alerion rose 1.6% to EUR18.90, standing out as the only stock in the green within the basket.

The board of Anima Holding - down 2.2% - approved the inflow data for February 2026, a month that closed with negative net inflows of EUR560 million in asset management.

In detail, asset management inflows net of Class I insurance mandates amounted to minus EUR67 million for the month. Since the beginning of the year, the balance is negative by EUR240 million. The group's total assets under management stood at EUR214.6 billion at the end of February, rising to EUR216.0 billion when including assets under administration.

Among the stocks at the bottom of the mid-cap list, Interpump Group is in the red by 3.1%, marking its third consecutive session with a bearish candle.

Selling for MAIRE, which fell 4.0% to EUR13.20 per share.

On the Small-Cap, Italian Sea Group performed best at the start - up 5.6% - announcing Monday that the board of directors co-opted Pietro Smeriglio as a new board member, also appointing him as employer under safety regulations. The board also resolved to request voluntary exclusion from the STAR segment from Borsa Italiana to simplify and optimize corporate activities and available resources, aiming to increase operational flexibility and focus on managing the financial situation.

On the other side of the list, Italian Exhibition Group left 12% on the floor.

Borsa Italiana announced Friday that, from Monday and until further notice, no market orders will be allowed on OPS Italia ordinary shares - flat at EUR0.07.

Among SMEs, ICOP is the stock with the highest trading value, falling 2.4%.

CrowdFundMe - not yet involved in trading - announced Monday that it approved the reverse take-over operation involving the merger by incorporation of Smart4Tech and WeAreStarting into the company.

E-Globe - flat at EUR0.64 - announced that it closed 2025, according to preliminary results, with a production value of approximately EUR33 million, while EBITDA is approximately EUR700,000. Net financial debt stands at EUR4.2 million.

Talea Group announced Friday that shareholders appointed the new board of directors, which will consist of three members. The chairman will be Riccardo Iacometti, the vice chairman Marco Di Filippo, while the sole independent member will be Marco Guidi.

In New York on Friday, the Dow Jones closed in the red by 1.0%, the S&P 500 fell 1.3%, while the Nasdaq lost 1.6%.

Among Asian markets, the Nikkei closed down 5.2%, the Shanghai Composite ended in the red by 0.7%, while the Hang Seng fell 1.4%.

On the currency front, as mentioned at the opening, the euro changed hands at USD1.1518 from USD1.1601 at Friday's European market close, while the pound traded at USD1.3307 from USD1.3394 on Friday evening.

Among commodities, Brent traded at USD106.60 per barrel from USD90.83 per barrel on Friday evening, while gold was worth USD5,104.74 per ounce from USD5,147.68 per ounce on Friday evening.

Monday's macroeconomic and corporate calendar includes consumer inflation expectations from the US at 1600 CET, while a three- and six-month Treasury bill auction is scheduled for 1630 CET.

In the Piazza Affari corporate calendar, results are expected from Caltagirone Editore, CIR, Digital Bros, Sanlorenzo, and Valsoia.

By Antonio Di Giorgio, Alliance News reporter

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