(Alliance News) - Major European stock markets open the session down sharply as futures predicted, following losses in Asian markets overnight. Fears of a U.S. recession were compounded over the weekend by concerns over tensions in the Middle East.

"Markets are in absolute turmoil this morning thanks to the biggest one-day drop in the Nikkei 225 since 1987, erasing the index's gains for the year. Volatility, as measured by the Vix, is at two-year highs and the index has earned the nickname 'fear index,'" commented Chris Beauchamp, Chief Market Analyst at online trading platform IG.

"Futures also point to a torrid time for European and U.S. markets, but it is on Wall Street where a new wave of selling is expected. Investors continue to flee tech stocks and the Nasdaq 100 is expected to open down 1,000 points from Friday's close, with a loss of more than 5 percent."

"This is a perfect demonstration of what happens when everyone tries to sell at the same time. Such movements do not stop in a single day, and we are probably in for a summer of volatility, especially as we await developments in the Middle East," the analyst concluded.

In Asia, the Nikkei lost 12 percent to 31,458.42, the Hang Seng is giving up 2.0 percent to 16,603.34, and the Shanghai Composite closed down 1.5 percent to 2,860.70.

Thus, the FTSE Mib opens in the red 3.9 percent to 30,811.76, the Mid-Cap is giving up 4.0 percent to 43,707.69, the Small-Cap is losing 3.5 percent to 27,046.90, and Italy Growth is down 2.3 percent to 7,750.46.

In Europe, Paris' CAC 40 is giving up 2.0 percent, London's FTSE100 is in the red by 2.3 percent as is Frankfurt's DAX 40.

On the Mib, a list completely in the red, Saipem ends up among the worst performers and gives up 7.7 percent. The company announced Monday that it has initiated a program to purchase 18.6 million of its own ordinary shares to service the 2024 award of the company's 2023-2025 Long-Term Variable Incentive Plan.

The potential maximum outlay for the purchase of these shares is estimated at about EUR40.3 million.

Also hurting were Telecom Italia, down 7.9 percent, Iveco Group in the red by 3.4 percent, and the entire banking complex, with Banca Monte dei Paschi di Siena, Banca Popolare di Sondrio, BPER Banca and Banco BPM, UniCredit, and Intesa Sanpaolo all moving between minus 8.5 percent and a 5.6 percent decline.

As part of the Italian Navy's Offshore Patrol Vessel program, Orizzonte Sistemi Navali OSN, the joint venture owned by Fincantieri -- down 4.4 percent on the Mid -- and Leonardo -- down 5.3 percent -- with shares of 51 percent and 49 percent, respectively, received notification from the Navy that it had exercised its option to build the fourth next-generation patrol vessel and related logistical support.

The companies announced Monday that the total value of the deal is about EUR236 million.

ERG opens down 2.0 percent. It reported Friday that it closed the first half with adjusted net income down year-on-year to EUR106 million from EUR114 million.

In the second quarter alone, the company's earnings fell to EUR28 million from EUR36 million.

Tenaris -- in the red by 5.3 percent -- announced over the weekend the completion of the fourth and final tranche of its USD1.2 billion share buyback program announced on November 1, 2023.

In fact, between July 29 and August 2, it bought back some 1.6 million shares at an average price of EUR13.6740 for a total value of EUR21.5 million.

In total during the fourth tranche, which ran from June 17, 2024 to August 2, 2024, the company purchased 19.5 million ordinary shares for a total consideration of EUR278.7 million, or USD300 million.

On the cadet segment, entirely tinged with red, at the bottom is Credito Emiliano, which loses more than 20 percent on the day the accounts will be announced.

Also hurting is Tinexta - in the red by 6.5 percent - after Friday's board approved the half-year report as of June 30, which closed with a net profit of EUR2.3 million from EUR45.1 million.

In contrast, adjusted profit from continuing operations was EUR11.9 million from EUR18.8 million for the same period in 2023.

In addition, the board decided Friday that the price offered for the takeover bid on Defence Tech Holding Spa will be EUR3.15.

The board of MARR -- down 4.7 percent -- on Friday approved the half-year financial report as of June 30, which closed with a net profit of EUR17.5 million from EUR18.7 million in the same period of 2023.

Total consolidated revenues amounted to EUR987.7 million, down from EUR1.00 billion in the same period of 2023.

Technogym gives up 5.9 percent after reporting Friday that it closed the first half with adjusted net income up 15 percent to EUR32.5 million from EUR28.1 million in the first half of 2023.

Revenues amounted to EUR402.1 million, up 8.7 percent from EUR370.0 million as of June 30, 2023.

The Comer Industries board -- flat at EUR32.90 -- on Friday approved the consolidated financial report as of June 30, closing with a net profit of EUR38.8 million -- or 7.3 percent of revenues -- down from EUR54.9 million in the same period last year.

The figure represents a 15 percent premium over EUR2.74, opx the price for the purchase of shares in Comunimpresa Srl and GE.DA Europe Srl upon the exercise of the calla option by Tinexta Defence Srl.

Mondadori divests 3.6 percent. The company announced Friday that Mondadori Libri Spa has signed reciprocal call and put options with Josephine Calasso -- holder of a total stake of 23.9 percent -- regarding a 10 percent stake in Adelphi Edizioni.

The options will be exercisable as of May 2027, at an exercise price reflecting an equity value for 100 percent of Adelphi of EUR50 million.

On the Small-Cap, TXT e-solutions gives up 6.8 percent. The company reported on Friday that it purchased 18,841 of its own ordinary shares between July 15 and July 25.

The shares were taken over at an average unit price of EUR, for a total value of EUR492,318.30.

Cairo Communication opens in the red by 10 percent after announcing Friday that it closed the first half of the year with a profit of EUR20.3 million from EUR15.9 million in the same period last year.

Revenues amounted to EUR595.1 million, up from EUR599.2 million in the first half of the previous year.

Among SMEs, Espe is not yet trading. The company announced Friday that it has formed a company called Gemini Solar Srl.

The capital of the newco will be EUR10,000 and it will be administered by only Enrico Meneghetti, president and CEO of Espe.

Svas Biosana is not yet trading. The company reported Friday that it closed the first half of the year with revenues of EUR59.1 million, up from EUR55.6 million in the same period last year.

In New York, the Dow gave up 1.5 percent, the Nasdaq lost 2.4 percent while the S&P 500 closed 1.8 percent in the red.

Among currencies, the euro changed hands at USD1.0932 against USD1.0916 on Friday's European stock close while the pound was worth USD1.2768 from USD1.2801 on Friday evening.

Among commodities, Brent crude is trading at USD76.16 per barrel from USD76.92 per barrel at Friday's close. Gold, on the other hand, trades at USD2,430.48 an ounce from USD2,427.31 an ounce on Friday evening.

Monday's macroeconomic calendar calls for euro area inflation and the producer price index at 1100 CEST.

At 1600 CEST, the U.S. S&P Global PMI Composite index and the service sector index are expected.

In Piazza Affari, the half-year results of several listed companies will be released, including Banca Monte Paschi di Siena, Banco BPM and Credito Emiliano.

By Chiara Bruschi, Alliance News reporter

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