European Markets Retreat; Pirelli and Amplifon Outperform

(Alliance News) - On Thursday, major European indices closed lower. Milan's Piazza Affari reversed course after gains seen through mid-session, ending just below the 40,000-point mark.

Investor sentiment had remained upbeat until early afternoon, buoyed by the easing of tariff concerns after a U.S. federal trade court ruled Wednesday night that former President Donald Trump had overstepped his authority by imposing reciprocal tariffs, dealing a blow to a key pillar of his economic agenda.

However, "the court's decision to block Trump's tariffs did not trigger a particularly euphoric reaction," noted Chris Beauchamp, analyst at IG.

"Continental indices struggled to gain momentum, but considering the intensity of the recent rally and the month's end approaching, it's not surprising to see a pause in the movement," he added.

The Trump administration plans to appeal and will seek alternative avenues to impose tariffs, so the decision is not a definitive conclusion.

As a result, the FTSE Mib closed down 0.4% at 39,982.97, the Mid-Cap lost 0.3% to 54,485.72, the Small-Cap fell 0.4% to 31,739.52, while the Italia Growth advanced 0.6% to 8,083.13.

London's FTSE 100 closed down 0.1%, as did Paris's CAC 40, while Frankfurt's DAX 40 lost 0.3%.

Back in Milan, on the Mib, Pirelli and Amplifon outperformed, both rising 1.1%.

Unipol closed up 1.0% at EUR17.20 per share. Barclays raised its target price on the stock to EUR17.50 from EUR16.50.

Assicurazioni Generali - down 1.5% - announced its return to the Insurance-Linked Securities market by sponsoring, through Lion Re, the issuance of a EUR200 million catastrophe bond split into two classes. The securities will cover storm events in Europe and earthquakes in Italy over a four-year period.

Ferrari closed down 0.3%. Salesforce.com announced it had entered a strategic partnership with the Maranello-based automaker to assist in customer relationship management.

Stellantis ended up 0.6% following the appointment of Antonio Filosa as new CEO. The decision came on schedule and under the supervision of John Elkann: the board unanimously approved his appointment to the role previously held by Carlos Tavares until December 2024.

STMicroelectronics rose 0.8%. At yesterday's shareholders' meeting, all proposals were approved, including the financial statements and dividends. However, Italy voted against the discharge for management and supervisory board members and against the confirmation of two French-nominated directors.

Leonardo was the worst performer on the main list, falling 2.2%, hit by profit-taking after four consecutive bullish sessions.

On the Mid-Cap, De' Longhi performed well, climbing 3.4% to EUR29.10 after a 1.6% loss the previous day. Notably, Barclays raised its target price on the stock to EUR30.00 from EUR23.00.

El.En. - down 0.5% - announced Thursday that it will launch the first phase of its share buyback plan, for up to 200,000 ordinary shares and a total value of EUR2 million.

Among the worst performers on the mid-cap list, Fincantieri ended down 3.5%, its second consecutive losing session. Notably, the stock has gained about 128% since the beginning of 2025.

On the Small-Cap, Digital Value closed up 2.4%, recording the highest trading value of the day.

Gefran ended down 0.5% at EUR10.65 per share, having hit a new annual high of EUR10.90 during the session.

Valsoia - flat at EUR11.00 - announced the launch of its already approved buyback program. Under the program, intended to provide shares for stock option plans, the company may purchase up to 200,000 ordinary shares, for a maximum of EUR2.5 million.

Among the worst performers, SYS-DAT dropped over 10%. The company reported that Vittorio, Marta, and Matteo Neuroni, along with Emanuele Angelidis, had sold 3.1 million ordinary shares.

Among SMEs, Alfonsino saw solid buying - up 2.5% - after announcing it closed the first quarter with revenues of EUR700,000, in line with the same period in 2024.

EBITDA was positive at EUR100,000, a 131% improvement over the negative EUR600,000 recorded in the first quarter of the previous year.

DBA Group - down 0.5% - announced the signing of the notarial deed for the sale of 70% of the share capital held, directly and indirectly, in Actual IT to Telelink Business Services Group.

iVision Tech - up 2.2% - announced that its iSee smart glasses have been registered with the Ministry of Health as a Class 1 medical device, in compliance with EU regulations.

This recognition certifies compliance with safety and performance requirements and allows users to access government subsidies for visual disabilities.

Planetel - flat at EUR4.10 - signed a binding agreement to acquire a business unit of Areatech, owned by Josef Coletta, active in Veneto and Lombardy in IT, telecom, and video surveillance services.

The EUR300,000 deal includes the transfer of around 700 business clients, one employee, and existing contracts for connectivity, maintenance, PBX, and web hosting services.

Redelfi posted the highest trading value among SMEs, closing up 4.9%.

Sicily by Car - up 4.0% - announced two new international openings, scheduled for June, at Porto and Palma de Mallorca airports, strengthening its presence on the Iberian Peninsula.

At the bottom of the alternative list, Casta Diva Group dropped 9.0% after announcing approval of its financial statements as of December 31, closing with a net profit of EUR1.0 million compared to EUR1.9 million in 2023.

In New York, the Dow was down 0.1%, the Nasdaq up 0.6%, and the S&P 500 up 0.3%.

In currencies, the euro traded at USD1.1366, up from USD1.1306 on Wednesday evening, while the pound was trading around USD1.3487, up from USD1.3472 the previous evening.

In commodities, Brent crude traded at USD63.38 per barrel from USD64.92 per barrel on Wednesday evening, while gold was worth USD3,342.61 an ounce from USD3,324.11 an ounce the previous night.

Friday's macroeconomic calendar opens at 01:30 CEST with a series of data from Japan, including the national and Tokyo consumer price indices, accompanied by the unemployment rate.

At 01:50 CEST, Japan will also release industrial production and retail sales data.

At 08:00 CEST, Germany's retail sales update is due, followed at 09:00 CEST by Spanish data on the consumer price index and producer price index.

At 10:00 CEST, Italy's GDP reading is scheduled, followed at 11:00 CEST by the monthly national inflation report.

At 14:00 CEST, Germany returns to the spotlight with the release of updated consumer price index data.

In the afternoon, attention turns to the US: at 14:30 CEST, data will be released on the goods trade balance, personal consumption expenditure price index, annual PCE, personal income, and retail inventories excluding autos.

Among Milan-listed companies, results are expected from Clabo, E-Globe, Giglio Group, Vantea SMART, and the quarterly results from Gentili Mosconi.

By Antonio Di Giorgio, Alliance News reporter

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