European markets lack momentum; focus on PMI and US data

(Alliance News) - On Thursday, major European equity indices are expected to trade without a clear direction, with Piazza Affari projected to open above Wednesday's close while Paris and Frankfurt appear listless.

Hopes for a US-Iran deal to end the conflict bolstered risk appetite yesterday, following reports that Washington and Tehran are nearing a memorandum of understanding. Markets responded with widespread buying across equities and bonds.

In European pre-market trading, Brent crude has edged back above USD100 per barrel, while the dollar continues to weaken.

Investors remain positioned for a geopolitical de-escalation, further supported by AI enthusiasm and robust corporate earnings growth.

Consequently, the FTSE MIB is tipped to rise by 0.4% or 205.0 points, after closing Wednesday up 2.4% at 49,696.75 points.

Elsewhere in Europe, London's FTSE 100 is expected to open 0.1% higher, the CAC 40 in Paris is seen flat, while Frankfurt's DAX 40 is called 0.1% lower.

In Milan yesterday evening, the Mid-Cap rose 3.1% to 59,833.28, the Small-Cap closed up 2.0% at 35,328.98, and Italy Growth ended 0.5% higher at 8,914.42 points.

On the MIB, Amplifon closed up over 12%. The company announced Tuesday that it ended the first quarter of 2026 with an adjusted net profit of EUR44.4 million, up 6.7% from EUR41.6 million in the same period of 2025. On a reported basis, group net profit fell to EUR10.5 million from EUR32.9 million, impacted by non-recurring charges.

Revenue reached EUR579.8 million, down 1.4% compared to EUR587.8 million in Q1 2025, but up 0.8% at constant exchange rates, supported by organic growth of 2.2%.

Lottomatica also gained over 12% to EUR27.67 per share. Kepler Cheuvreux confirmed its 'buy' recommendation on the stock with a target price of EUR30.00, consistent with its March report, implying a 22.2% upside potential.

UniCredit added 4.6%. The German government is reportedly weighing new options to thwart UniCredit's takeover bid for Commerzbank as political tension mounts over the deal led by CEO Andrea Orcel.

According to Reuters, officials in Berlin are examining the possibility of increasing the state's stake in the German lender through KfW, the state development bank, in an effort to build a large enough holding to block a full takeover. Germany already holds approximately 12% of Commerzbank, a legacy of the global financial crisis bailout, and the current hypothesis involves increasing this stake to establish a blocking minority.

Leonardo - up 5.0% - announced Wednesday that it closed the first quarter of 2026 with an adjusted net result of EUR184 million, a 60% increase from EUR115 million in Q1 2025, while the reported net result fell to EUR184 million from EUR396 million due to extraordinary items recorded in the prior-year period.

Revenue rose to EUR4.45 billion from EUR4.16 billion, marking a 6.9% increase, or 10% excluding the negative currency effect from the conversion of US operations, primarily Leonardo DRS.

On the Mid-Cap, Webuild closed with a 6.1% bullish candle, marking its seventh consecutive session of gains.

Technogym - up 10% - announced Wednesday that it closed the first quarter with double-digit revenue growth, supported by positive performance across all segments and geographies.

Specifically, consolidated revenue reached EUR237 million, up 10% compared to the same period in 2025. At constant exchange rates, growth stood at 12.6%.

Sanlorenzo finished 2.9% higher. Notably, Boldhaven Management increased its short position on the stock to 2.10% from 2.00%.

The board of Ariston Holding - which fell 2.5% - announced Wednesday that it closed the first quarter of 2026 with net revenue of EUR656 million, up 1.2% compared to the same period in 2025 and substantially stable on an organic basis. Performance was bolstered by growth in Europe, partially offsetting negative pressure from the Middle East, in line with the expected trajectory for the year.

On the Small-Cap, Datalogic gained 4.2%, marking its fourth consecutive bullish candle.

Industrie De Nora closed 16% higher. The company reported Q1 results on Wednesday, showing an adjusted net profit of EUR19.1 million, up 1.0% from EUR18.9 million recorded between January and March 2025. Revenue fell 11% to EUR178.5 million from EUR200.4 million in the first three months of 2025.

Trevi Finanziaria Industriale rose 5.4%, its fourth consecutive positive session.

Tesmec gained 3.4%, securing a five-day winning streak.

Among SMEs, Lindbergh closed up over 10%, rebounding after three bearish sessions.

Lemon Sistemi - up 8.1% - announced Tuesday that it signed a contract for the construction of a photovoltaic plant in Sicily featuring a Huawei electrochemical storage system, with a total estimated value of approximately EUR4.3 million. The project includes a unique Huawei storage system, the company noted, 'marking a further step up in scale for Lemon Sistemi'.

Arterra Bioscience - down 1.0% - announced Wednesday that first-quarter turnover reached EUR1.6 million, a 22% increase from EUR1.3 million recorded in Q1 2025.

Next Geosolutions Europe - up 1.6% - announced Wednesday the successful conclusion of the review process for its investment program under the 'development contract' instrument, managed by Invitalia on behalf of the Ministry of Enterprises and Made in Italy. Specifically, Invitalia approved the development contract proposal, granting non-repayable subsidies for a maximum total amount of EUR9.4 million for an industrial investment project in Campania.

The investment program involves eligible expenses totaling approximately EUR23.5 million, of which roughly EUR17.7 million had already been incurred and paid as of March 2026.

In New York on Wednesday evening, the Dow gained 1.2%, the Nasdaq advanced 2.0%, and the S&P 500 rose 1.5%.

In Asia, the Nikkei is up 5.9%, the Hang Seng is rising 1.4%, and the Shanghai Composite is up 0.4%.

On the currency front, the euro is trading at USD1.1751 from USD1.1754 on Wednesday evening, while the pound is at USD1.3594 from USD1.3598 yesterday evening.

Among commodities, Brent is trading at USD101.47 per barrel from USD101.71 on Wednesday evening, while gold is valued at USD4,707.77 per ounce from USD4,693.70 yesterday evening.

Thursday's economic calendar features construction PMIs for the Eurozone, Germany, France, and Italy at 0930 CEST.

At 1100 CEST, the focus shifts to Eurozone retail sales.

At 1430 CEST, attention turns to US jobless claims, while the Federal Reserve's weekly balance sheet will be available at 2230 CEST.

Among Piazza Affari companies, results are expected from several firms, including Ascopiave, Azimut, Monte dei Paschi di Siena, Mediobanca, Brembo, and Terna.

By Antonio Di Giorgio, Alliance News reporter

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