(Alliance News) – On Monday morning, Europe’s main stock indices opened in negative territory, with Milan’s Piazza Affari approaching the 42,300 mark, while Paris posted the steepest decline among European bourses.

Investor attention is focused on upcoming US inflation data, which could influence the Federal Reserve’s decisions, as well as preliminary figures from the Eurozone.

“In Europe, preliminary August inflation data from leading economies, due out today, should show some upward pressure. Combined with a reduction in trade uncertainties, this could prompt the European Central Bank to pause rate cuts in September,” commented Ipek Ozkardeskaya, analyst at Swissquote Bank.

“A possible agreement between the US and the EU could also lower tariffs on European carmakers from 27.5% to 15%, providing relief for the sector,” the expert added.

As a result, the FTSE Mib is down 0.3% at 42,317.54, the Mid-Cap is up 0.3% at 57,182.43, the Small-Cap is fractionally lower at 34,906.21, while the Italy Growth index slips 0.1% to 8,474.28.

London’s FTSE 100 is down 0.2%, Paris’s CAC 40 drops 0.4%, and Frankfurt’s DAX 40 retreats 0.2%.

On the macroeconomic front, German import prices fell by 1.4% year-on-year in July, matching the previous month’s pace and exceeding market expectations of a 1.2% decline. On a monthly basis, import prices dropped 0.4%, after showing no growth in June.

In France, preliminary estimates released by INSEE on Friday showed the annual inflation rate fell to 0.9% in August, against market expectations for an unchanged reading from July’s 1%.

Back in Milan, on the blue-chip board, Leonardo led gains at the open, up 1.8% with over 800,000 shares already traded.

Brunello Cucinelli also performed well, up 1.0% to EUR101.95, after reporting another semester of growth, with revenues rising to EUR684.1 million as of June 30 this year from EUR620.7 million in the same period last year.

Net profit improved to EUR76.7 million from EUR66.1 million, with earnings per share climbing to EUR1.0782 from EUR0.8963 a year earlier.

UBS has cut its target price on the stock to EUR123.00 from EUR125.00, maintaining a ‘buy’ recommendation.

Prysmian shares fell 0.7% after the company announced on Friday it had received the “notice to proceed” for the Marinus Link project in Australia, following the signing of a contract worth around EUR600 million, announced in August 2024.

With the notice to proceed, the project now enters the company’s backlog.

UniCredit, down 0.4%, said on Thursday it had subscribed to additional financial instruments related to a stake in Alpha Bank, raising its aggregate position to about 26%.

According to analyst consensus, the Alpha Bank investment should generate about EUR244 million in net profit for UniCredit in 2026, with a significant increase in subsequent years to be returned to shareholders in line with the group’s distribution policy.

The stake will have an impact of around 65 basis points on the CET1 ratio and an estimated return on investment of about 20%.

At the bottom of the main list sits Telecom Italia, down 2.2%, extending Thursday’s 8.8% drop after Iliad announced it was no longer interested in merger talks. The French group’s CEO said there had been no discussions with TIM since early April and that talks would not resume.

On the Mid-Cap, Mediaset leads the gains. MFE-MediaForEurope celebrated on the stock market yesterday after acquiring ProsiebenSat1, creating a European digital TV giant with EUR6.8 billion in revenues, EUR1.37 billion in EBITDA, and a potential audience of 300 million viewers across Italy, Germany, Spain, Austria, and Switzerland.

Analysts say the deal removes uncertainty over the asset’s contestability and reduces execution risks, enabling MFE to maximize synergies up to EUR418 million in EBIT.

Class A shares are up 3.8%, while Class B shares are up 5.2%.

Fincantieri continues to attract buying, up 5.0% to EUR20.34 per share. At the open, the stock hit a new all-time high of EUR20.48.

At the bottom of the mid-cap board is Banca di Desio e della Brianza, down 1.3%.

On the Small-Cap, Aquafil leads the way, up 5.2% after announcing on Thursday it returned to profit in the first half despite a slight drop in revenues. Net profit was EUR2.2 million, compared to a EUR6.1 million loss as of June 30, 2024, while revenues fell to EUR287.4 million from EUR291.4 million a year earlier.

On the other end of the list, FNM is down 4.2%.

Digital Value slips 0.6%, while Olidata gains 0.1%.

B&C Speakers drops 0.3% after ending Thursday at the bottom of the list, down 9.3%. Borsa Italiana announced on Wednesday that, until further notice, unlimited price orders are not permitted on the company’s ordinary shares.

Among SMEs, Espe is up 3.1% and Haiki+ rises 1.2% among the most traded by value.

Allcore performs strongly, up 8.2%, extending gains from the previous session.

Pozzi Milano, up 5.1%, announced Thursday that its board of directors approved a merger plan to incorporate Mascagni Casa, a wholly-owned subsidiary active in home decor.

Among the decliners, Laboratorio Farmaceutico Erfo loses 1.2% after a double-digit rise yesterday. The company said Thursday its board reviewed consolidated results as of June 30, not subject to legal audit, showing consolidated revenues of EUR5.2 million, up 56% from the same period in 2024.

EBITDA rose to EUR1.2 million, up 64% with a margin of 23%, supported by contributions from Fit and Go and the strengthening of the Diètnatural network.

In New York on Thursday evening, the Dow closed up 0.2% at 45,636.90, the Nasdaq advanced 0.5% to 21,705.16, and the S&P 500 gained 0.3% to 6,501.86.

In Asia, the Nikkei ended down 0.3%, the Shanghai Composite closed up 0.4%, and the Hang Seng rose 0.6%.

On the currency front, the euro trades at USD1.1667 from USD1.1670 at Thursday’s equity close, while the pound trades at USD1.3488 from USD1.3516 last night.

Among commodities, Brent is trading at USD67.54 a barrel from USD67.01 at last night’s close, while gold is worth USD3,469.45 an ounce from USD3,462.42 an ounce last night.

Friday’s macroeconomic calendar continues at 1000 CEST from Italy, with the release of GDP and consumer price index data, while inflation figures are due from Germany.

At 1100 CEST, the focus remains on Italy with the annual consumer price index.

In the afternoon, at 1430 CEST from the US, the core personal consumption expenditures price index and retail inventories excluding autos will be released.

The week wraps up at 1900 CEST, again from the US, with Baker Hughes data on the total number of drilling rigs.

Among Piazza Affari companies, results from Vimi Fasteners are expected.

By Antonio Di Giorgio, Alliance News reporter

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