Broad sell-side caution as dollar demand rises

(Alliance News) - European markets started the week in negative territory, weighed down by the return of geopolitical tensions between the US and Iran and the subsequent rise in risk aversion across global markets. In the currency market, the euro retreated below the USD1.17 mark against the US dollar, reflecting increased demand for the American currency amid a phase of uncertainty and a flight to safe-haven assets.

Investor sentiment was dampened by the prospect of a possible escalation in the Gulf region following the failure of diplomatic talks and growing tensions around the Strait of Hormuz, a strategic chokepoint for global oil flows. Statements regarding potential naval blockades and military operations fueled fears of energy supply disruptions, triggering a rapid rally in Brent crude prices, which returned above USD100 per barrel.

The spike in oil prices reignited inflationary pressures and shifted expectations regarding the ECB's upcoming monetary policy moves, with markets beginning to price in a more restrictive rate path compared to last week.

Consequently, the FTSE Mib is down 0.8% at 47,253.60, the Mid-Cap loses 0.9% at 56,718.33, the Small-Cap sheds 0.9% at 33,699.28, while Italy Growth edges down just below par at 8,629.33.

London's FTSE 100 is in the red by 0.4%, the CAC 40 in Paris sheds 0.9%, while the DAX 40 in Frankfurt drops 1.0%.

Returning to Milan, on Piazza Affari's blue-chip index, Leonardo is among the minority of gainers, picking up 1.4% after a .3% loss in the previous session.

Tenaris advances 1.4% to EUR25.81 per share, following a 0.9% decline in the prior session.

UBS confirmed its "buy" recommendation on Prysmian - which is currently down 0.4% at EUR119.35 - and raised its price target to EUR135.00 from EUR105.00, reflecting further improvement in estimates and greater visibility on medium-term earnings growth.

Enel, meanwhile, sheds 0.2% to EUR9.84 per share. As noted in this week's report by Claudio Guerrini on Evaluation.it, Enel presents a lower-than-average market risk profile, thanks to a beta below 1 and the defensive nature of the sector, characterized by stable cash flows and high geographical diversification. Applying valuation models based on discounted cash flows and Economic Value Added, the analyst sets a theoretical value for the stock at EUR9.37 per share.

Brunello Cucinelli retreats 3.7% to EUR80.78 per share. Berenberg confirmed its "buy" recommendation on the stock with an unchanged price target of EUR120.00, in light of a first quarter that exceeded expectations and growth visibility that remains high over the medium term. Analysts Nick Anderson, Harrison Woodin-Lygo, and Vani Mohindra highlighted double-digit retail growth across all geographies and a positioning that continues to stand out in the luxury sector.

On the mid-cap segment, GVS shows strength, pushing 9.6% higher after a 1.9% gain the previous day.

De' Longhi - up 1.7% - announced on Friday that a new share buyback program for approximately EUR60 million will be launched starting April 13. The buyback will last for a maximum of six months.

Interpump Group - down 0.9% - announced on Monday that it acquired 102,000 of its own ordinary shares between April 6 and 10. The shares were purchased at an average unit price of EUR36.1571, for a total value of approximately EUR3.7 million.

Webuild is currently shedding 6.2%, following a 3.5% gain on Friday evening.

On the Small-Cap index, Softlab is the top performer with a bullish candle of 3.7% at EUR1.1 per share.

Gas Plus is flat at EUR6.52 per share. Banca Akros left its view on the stock unchanged but raised the target price to EUR8.00 from EUR6.50 for August 2025, with a potential upside of 9.0%, citing results slightly above estimates and a "significant improvement in the net financial position."

Trevi Finanziaria Industriale retreats 3.6% to EUR0.3054 per share, marking its third consecutive bearish candle.

The Italian Sea Group marks a 3.8% decline to EUR0.8570, closing out the list.

Among SMEs, Green Oleo is moving forward by 4.8%, following a 0.8% gain in the previous session.

Destination Italia - not yet traded - announced on Friday that it closed the first quarter of the year with consolidated sales revenues of EUR21.9 million, up 1.6% compared to EUR21.6 million in the first quarter of 2025. The contribution margin reached EUR2.9 million, a 16% increase compared to EUR2.5 million in Q1 2025.

Siav - up 0.5% - announced that it has signed a binding agreement to acquire 9.1% of Atacod Srl through a total investment of EUR1 million, based on a pre-money valuation of EUR10 million. The transaction, announced by Siav, is part of the group's growth strategy and aims to expand its technological offering by integrating advanced expertise in business process automation via artificial intelligence.

In New York on Friday evening, the Dow lost 0.6%, the Nasdaq advanced 0.4%, while the S&P 500 closed down 0.1%.

On the currency front, the euro is changing hands at USD1.1686 from USD1.1726 on Friday evening, while the pound trades at USD1.3428 from USD1.3463 on Friday evening.

Among commodities, Brent is trading at USD102.45 per barrel from USD96.85 per barrel on Friday evening, while gold is worth USD4,715.70 per ounce from USD4,768.33 per ounce on Friday evening.

Monday's macroeconomic calendar includes the BTF auction in France at 1500 CEST with 3-month, 6-month, and 12-month maturities.

At 1600 CEST, existing home sales are expected in the US.

The day concludes at 1730 CEST in the US with three-month and six-month Treasury Bill auctions.

By Maurizio Carta, Alliance News reporter

Comments and questions to [e-mail]

Copyright 2026 Alliance News IS Italian Service Ltd. All rights reserved.