Risk-off mood on European markets; Hera trails at the bottom

(Alliance News) - Major European markets closed Wednesday's session in negative territory, with the MIB retreating toward the 47,800-point level, erasing the gains from the previous session.

The move reflects a climate of marked caution ahead of a dense monetary policy agenda, with the Federal Reserve expected to hold rates steady and the European Central Bank leaning toward a similar stance.

Risk sentiment remains suppressed due to the resurgence of geopolitical tensions in the Middle East. Reports of a possible tightening of U.S. measures against Iran, including preparations for a prolonged blockade in the Strait of Hormuz, are fueling fears of disruptions to global energy routes, with direct implications for inflationary expectations.

In this context, traders are maintaining a prudent positioning, favoring safe-haven assets and supporting the dollar, while attention focuses on forward-looking guidance from central banks regarding the macroeconomic impact of the geopolitical landscape.

Consequently, the FTSE MIB fell 0.5% to 47,796.03, the Mid-Cap rose 0.4% to 57,961.04, the Small-Cap dropped 1.1% to 34,445.72, while Italy Growth shed 0.1% to 8,826.18.

London's FTSE 100 closed down 1.2%, Paris's CAC 40 shed 0.5%, while Frankfurt's DAX 40 retreated 0.3%.

Returning to Milan, on Borsa Italiana's blue-chip index, Hera left 3.5% on the floor after a 0.4% gain in the previous session.

Enel shed 2.8%, following a 1.6% decline the day before, with a final price around EUR9.66 per share.

Fincantieri - down 1.0% - announced it has signed an agreement with Kayo to create a joint venture in Albania for shipbuilding and maintenance, with a 51% stake for the Italian group and 49% for the company controlled by the Albanian Ministry of Defense. The agreement, signed in Tirana in the presence of Prime Minister Edi Rama and Defense Minister Ermal Nufi, represents the evolution of two memoranda of understanding signed in 2025 and aims to develop strategic industrial collaboration between the parties.

UniCredit - down 0.1% - announced on Wednesday the exercise of its option for the full early redemption of a USD1 billion bond issue with a 1.982% coupon, a fixed-to-fixed rate structure, originally maturing in 2027. The securities, issued on June 3, 2021, will be redeemed early on June 3, following authorization from the Single Resolution Board.

STMicroelectronics posted a 6.0% gain to EUR44.71 per share, following two sessions ending with bullish candles. During the session, the stock hit a new 52-week high at EUR45.52.

Nexi advanced 2.9% to EUR3.96 per share. According to the Financial Times, CVC is revisiting the Nexi dossier and evaluating a EUR9 billion bid, including debt, with the aim of delisting from Borsa Italiana. The British fund's plan reportedly involves a breakup of the group, with the interbank network destined for Cassa Depositi e Prestiti and the remaining activities under CVC's control for a relaunch.

Eni advanced 1.0% to EUR23.64 per share. Berenberg confirmed its 'hold' recommendation on the stock with a target price of EUR22.00, compared to a market price of EUR23.42 on April 28 for a capitalization of EUR71.99 billion, believing that recent performance has already priced in much of the value.

In the report authored by Henry Tarr, James Carmichael, Richard Dawson, and Seb D'Arcy Rice, analysts highlighted a first quarter of 2026 that fell short of expectations, with adjusted Ebit 11% below consensus and cash flow 15% lower, penalized primarily by losses in the Refining and Chemicals segment, weakness in Enilive and Plenitude, and higher corporate costs.

On the mid-cap segment, Safilo retreated 4.4% to EUR1.59 per share, marking its fourth consecutive bearish candle.

Salvatore Ferragamo shed 5.0% to EUR7.26 after a 0.3% gain the previous day. Notably, Jefferies initiated coverage on the stock with a target price of EUR5.50 and an 'underperform' rating.

Webuild - up 0.4% - announced on Tuesday that it has priced EUR500 million in senior unsecured fixed-rate bonds with a six-year maturity and a 4.5% annual coupon. The transaction saw demand exceeding five times the offer, with orders from over 250 investors.

MAIRE - bullish with a nearly 13% gain - reported first-quarter results on Wednesday that 'confirm the resilience and growth' of the group, posting a profit of EUR76.7 million, up 20% from EUR64 million in the same period of 2025, with a 4.2% margin on revenue, up 40 basis points.

On the Small-Cap index, Aeffe shed 8.5%, marking its fifth consecutive bearish session.

doValue - down 9.5% - announced that the shareholders' meeting, called to approve the 2025 financial statements, adopted further resolutions. Specifically, shareholders approved a new authorization for the buyback of up to 19 million shares, equal to 10% of the capital, for a period of 18 months. Furthermore, Francesco Maria Pansa was confirmed as a director until the approval of the 2026 financial statements.

Trevi Finanziaria Industriale - down 0.8% - announced on Tuesday that it acquired contracts and orders totaling over EUR220 million in the first quarter, an increase of approximately EUR81 million compared to the same period in 2025. Specifically, the Trevi division recorded acquisitions of EUR193 million, while the Soilmec division collected orders for over EUR32 million.

IGD SIIQ - down 0.5% - announced on Wednesday that it signed, through its subsidiary IGD Service, a contract for Property and Leasing Management activities for the 'Poseidon' shopping center with Kryalos SGR, which recently completed the acquisition of the asset on behalf of the Urania Fund.

EPH - up 1.0% - announced on Tuesday that it approved a capital increase totaling EUR7.5 million as part of a capital strengthening operation reserved for Rona Limited Company. The transaction, structured in two tranches between cash and in-kind contributions, is scheduled for subscription by May 30, 2026.

Among SMEs, Lindbergh advanced 2.9% to EUR12.40 per share, its sixth consecutive bullish candle.

Monnalisa gained 7.6%, following a 7.0% contraction the previous day.

Xenia Hotellerie Solution - down 2.9% - announced it closed the first quarter with total revenue of EUR17.9 million, up from EUR14.6 million as of March 31, 2025, an improvement of over 22%. Accommodation revenue stood at EUR12.9 million from EUR11.2 million, while Phi Hotels revenue reached EUR5.0 million from EUR3.4 million in the first quarter of last year.

Telmes - down 3.9% at EUR1.10 - announced on Wednesday the award of a EUR1.4 million contract for the construction of a hydrogen production, storage, and refueling plant at the Cosenza Vaglio Lise railway depot, managed by Ferrovie della Calabria.

In New York, the Dow is shedding 0.7%, the Nasdaq is trading just below parity, while the S&P 500 is retreating 0.2%.

On the currency front, as mentioned at the open, the dollar is strengthening, with the euro changing hands at USD1.1698 from USD1.1713 on Tuesday evening, while the pound trades at USD1.3498 from USD1.3509 on Tuesday evening.

Among commodities, Brent trades at USD117.60 per barrel from USD111.58 per barrel on Tuesday evening, while gold is worth USD4,556.13 per ounce from USD4,578.67 per ounce yesterday evening.

Thursday's economic calendar includes, at 0150 CEST, Japan's industrial production data, while at 0330 CEST, China's manufacturing PMI will be released.

At 0800 CEST, Germany will release retail sales data, followed by unemployment data at 0955 CEST.

At 1000 CEST, focus shifts to Italy's Gross Domestic Product, followed at 1030 CEST by the unemployment rate and at 1100 CEST by inflation.

At 1300 CEST, the Bank of England will announce its interest rate decision, while the ECB's decision will arrive at 1415 CEST.

At 1430 CEST, the U.S. will release the PCE index data, while at 2230 CEST, the Fed's weekly balance sheet will be published.

On the Piazza Affari corporate calendar, results are expected from BasicNet, CrowdFundMe, FAE Technology, Itway, Softlab, Stellantis, and TMP Group.

By Maurizio Carta, Alliance News reporter

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