Sales on European stock markets; Leonardo still down

(Alliance News) - European stock markets are trading in negative territory at midday on Wednesday, weighed down by a still uncertain global environment. In Milan, the Mib is holding steady at around 40,400 points, while Paris is recording the biggest losses among the continent's major indices.

Prolonged international conflicts continue to drive up defense spending. EU countries have reached an agreement to create a fund of up to EUR 150 billion for the joint purchase of weapons.

In the US, President Donald Trump announced the Golden Dome program, a new USD 175 billion multi-layered missile defense system that, for the first time, involves the use of US space weapons. The space components of the project alone could cost up to USD 542 billion over the next 20 years.

Beijing has strongly criticized the initiative, saying the plan "undermines global stability." China also condemned recent US restrictions on chip exports, calling them "bullying," and promised countermeasures against any attempt to limit its access to advanced semiconductors and related supply chains.

Growing geopolitical tensions continue to push investors towards safe-haven assets. Gold is consolidating well above USD 3,300 an ounce, once again confirming its status as the main safe-haven asset in times of uncertainty.

As a result, the FTSE Mib is down 0.3% to 40,401.89, the Mid-Cap is down 0.2% to 54.145.71, the Small-Cap is down 0.1% to 31,318.22, while the Italy Growth is down 0.1% to 7,917.19.

The FTSE 100 in London is down fractionally, the CAC 40 in Paris is down 0.5%, and the DAX 40 in Frankfurt is down 0.1%.

Returning to Milan, on the Piazza Affari's highest capitalization list, Leonardo remains at the top at midday, advancing 1.5% in its sixth bullish session. The stock hit a new 52-week high of EUR52.58 during trading.

Banco BPM followed, up 1.0%, after completing the issue of a EUR400 million Additional Tier 1 capital instrument for institutional investors.

Banca Monte dei Paschi di Siena has updated the terms of its voluntary public exchange offer for all ordinary shares of Mediobanca.

The initial exchange ratio of 2.300 MPS shares for each Mediobanca share has been adjusted to take into account the dividend payment, changing to 2.533 MPS shares for each Piazzetta Cuccia share contributed.

MPS fell 0.7%, while Mediobanca rose 0.7%.

Nexi, up 0.8%, announced the launch of a share buyback program for a maximum amount of EUR 300 million, with a deadline set for December 31, 2025.

Recordati, up 0.7%, announced that it had acquired treasury shares for a total value of EUR 4.5 million.

Snam - down 0.2% - successfully completed its first bond issue in US dollars, raising USD 2.0 billion through a multi-tranche placement in a Sustainability-Linked format for institutional investors.

Among the many stocks in decline, Buzzi and Moncler fell 2.0% each, while Amplifon remained at the bottom of the list, falling 2.3% and wiping out Tuesday's gains.

On the Mid-Cap, Cembre led the gains, advancing 2.6% to EUR56.40, extending yesterday's gains and exceeding Berenberg's target price of EUR49.00.

Fincantieri rose 2.2% for the sixth consecutive session in positive territory. The stock updated its annual high to EUR14.60 per share.

De' Longhi is down 0.4% to EUR28.90 per share. Berenberg raised its target price on the stock to EUR32.00 from EUR31.00 with a 'hold' recommendation.

Mediobanca filed the document for the public exchange offer on Banca Generali with Consob, thus officially launching the authorization process for a EUR6.3 billion transaction aimed at creating a major Italian savings hub.

Banca Generali is down 0.2% at midday trading.

ERG is at the bottom of the second tier with a 3.2% loss. Millennium International Management has cut its short position on the stock to 0.54% from 0.61% previously.

On the Small-Cap market, among the stocks with the highest trading value, Tinexta lost 3.0%. The company announced the completion of the closing relating to the exercise of the call option by its subsidiary Tinexta Innovation Hub, which led to the acquisition of 25% of the capital of ABF Group from ABF Holding. The consideration for the transaction was symbolically set at EUR1.00.

Avio performed well, up 1.2% on its third day in the green. Voleon Capital Management reduced its short position in Avio to 0.49% from 0.51% previously.

Banca Profilo - down 0.3% - has renewed its board of directors for the two-year period 2025-2026. The board is composed of nine members: Centonze has been appointed chairman, while Gigante will serve as vice chairman.

EuroGroup Laminations changed direction and advanced 0.5% to EUR3.176. Berenberg cut its target price to EUR2.60 from EUR2.70 after the board approved the accounts on Monday, closing the first quarter of 2025 with a net loss of EUR2.1 million, compared with a profit of EUR8.3 million in the same period of 2024.

illimity Bank turned downward and was down 0.2%, extending the previous day's losses.

Among SMEs, Laboratorio Farmaceutico Erfo continued to see buying, extending its morning gains to 12%. The company announced the launch and marketing of its new product Osteo-therapy, currently in the patent process.

This is a nutraceutical supplement developed to accelerate the osseointegration process following the placement of dental implants.

Allcore - up 4.6% - closed the first quarter with consolidated revenues of EUR 12.0 million, up 15% compared to the same period in 2024.

Emma Villas - still not trading - recorded a total value of confirmed bookings for the entire year of EUR 28.2 million as of May 20, up 4.2% compared to EUR 27.0 million recorded on the same date in 2024.

Among the stocks at the bottom of the alternative listing, Eles was down 4.7% at midday. The company closed the first quarter with consolidated revenues of approximately EUR 5.7 million, down 12% compared to EUR 6.5 million in the same period of 2024.

OSAI Automation System sits at the bottom of the list at the halfway point with a loss of 7.8%.

In New York on Tuesday evening, the Dow closed down 0.3% at 42,677.24, the Nasdaq fell 0.4% to 19,142.72, while the S&P 500 lost 0.4% to 5,940.46.

In Asia, the Nikkei closed down 0.6%, the Shanghai Composite rose 0.2%, while the Hang Seng advanced 0.6%.

Among currencies, the euro traded at USD 1.1329 from USD 1.1259 on Tuesday evening, while the pound traded at USD 1.3404 from USD 1.3367 on Tuesday evening.

Among commodities, Brent crude traded at USD 66.40 per barrel from USD 65.10 per barrel on Tuesday evening, while gold traded at USD 3,313.64 from USD 3,277.04 per ounce on Tuesday evening.

In Wednesday's macroeconomic calendar, at 1300 CEST from the US, the focus is on the mortgage market report, while at 1630 CEST, data on crude oil inventories will be available.

By Antonio Di Giorgio, Alliance News reporter

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