European Markets Close Lower, Mib in the Red Dragged Down by Luxury Sector

(Alliance News) - On Wednesday, major European stock indices ended trading in negative territory, on the day the Federal Reserve is expected to announce its decision on US interest rates, which are likely to remain unchanged.

Oil prices rose as, in the background, President Trump threatened Iran, while gold and silver both reached their respective all-time highs.

Domestically, Italy's consumer and business confidence indices both increased compared to the previous month. Household confidence edged up slightly from 96.6 to 96.8, and the composite business confidence indicator rose from 96.6 to 97.6.

As a result, the Mib closed the session down 0.7% at 45,138.73, the Mid-Cap slipped 0.1% to 60,565.05, the Small-Cap dropped 0.3% to 37,226.99, and Italy Growth shed 0.1% to 8,835.97 points.

Other indices were also negative: the CAC 40 fell 0.9%, the DAX 40 lost 0.2%, and the FTSE 100 dropped 0.5%.

"Psychological levels continue to fall like dominoes this January. The S&P 500 briefly surpassed 7,000 for the first time, buoyed by hopes that a weak dollar and low interest rates will create a powerful cocktail to supercharge earnings in the coming months," commented Chris Beauchamp of IG.

"Now it's up to the big tech companies and the Fed to deliver the right data tonight to avoid spoiling the party," the analyst concluded.

On the Milan Stock Exchange, in an extraordinary session, TIM's ordinary shareholders' meeting—with shares up 1.6% at EUR0.5892—approved, with 99.87% of votes in favor, the voluntary conversion of savings shares into ordinary shares, at a ratio of 1 ordinary share for each savings share held, accompanied by a cash adjustment of EUR0.12.

In the banking sector, BPER Banca—down 1.6%—and Banca Popolare di Sondrio—down 2.1%—announced that the European Central Bank has granted approval for the merger of the two institutions.

Tense anticipation for the board meeting of Monte dei Paschi di Siena, which slipped 1.3%. The board is set to resolve two issues: Consob regulations regarding the new board's list and the remuneration of Mediobanca chairman Vittorio Grilli. Mediobanca's proposal—down 0.8%—for Grilli, up to EUR2.1 million per year, is unlikely to be fully approved by MPS.

Assicurazioni Generali—up 1.5%—will launch a share buyback program to support the group's long-term incentive plan through 2027. The buyback is authorized for up to 7.2 million shares with a total value of EUR280 million.

Saipem and STMicroelectronics both performed well, gaining 1.5% and 2.2%, respectively. The luxury sector saw declines, with Moncler falling 3.0% and Brunello Cucinelli down 2.2%.

On the Mid-Cap, Alerion Clean Power—down 0.7%—announced on Wednesday that the public offering for its green bonds has opened, with a total amount of EUR200 million, and it will exercise the option to increase by EUR100 million.

JPMorgan maintains a 'neutral' rating on Salvatore Ferragamo, with a target price of EUR7.50, after the release of 2025 results that were overall in line with the bank's expectations. Despite some encouraging signs in Retail, the overall outlook remains balanced by persistent challenges in the Wholesale channel and an ongoing management transition. The stock closed down 5.8%.

Interpump, which hit a 52-week high, topped the leaderboard with a 5.7% gain to EUR48.52 per share. Caltagirone also performed well, up 2.5% to EUR10.25 per share.

On the Small-Cap, Aedes, with trading suspended by Borsa Italiana, finalized the terms of its rights issue for up to EUR5 million. The board approved the issuance of up to 96.0 million new ordinary shares.

Mondo TV—up 8.6%—signed a non-binding Memorandum of Understanding with Canadian investor Hemlock West to explore a possible EUR300,000 equity investment in the company and the launch of an industrial partnership.

Generalfinance, up 0.8%, and Net Capital announced they have completed a factoring transaction on POS flows for Arcadia Fashion, the company that manages the Conbipel clothing brand.

Borgosesia, down 0.7%, increased the total amount of its "Borgosesia 6.30%" bond issue to EUR65 million. The board approved the increase due to strong demand.

Eurotech approved a capital increase for nearly 21 million new shares and an industrial plan that foresees an initial phase of stabilization and moderate revenue growth in 2026 and 2027, with a return to positive Ebitda already in 2026. The stock closed down 8.0% at EUR0.92 per share.

Among SMEs, Circle—up 1.6%—launched a new project with a major European player, worth over EUR1.5 million and lasting about twelve months, aimed at the digital transformation of strategically important inland terminals in Southern Europe.

High Quality Food—down 0.3%—signed a binding preliminary agreement for the purchase of its future new headquarters in Rome as part of its investment plan. Following the signing of the preliminary contract, the company paid EUR530,000 as a deposit. The total cost of the property purchase is EUR5.3 million.

Industrie Chimiche Forestali—down 2.3%—released preliminary results for 2025, reporting revenues of EUR72.5 million, down from EUR75.2 million in 2024. Ebitda rose to EUR9.5 million, compared to EUR8.9 million in the previous year.

UCapital24, with daily losses of 3.2%, appointed Andrea Minto as independent director. Minto, a full professor of financial markets law, replaces Erika Gabrielli, who resigned last July.

In New York, the Dow Jones was slightly up by 0.1%, as were the S&P 500 and the Nasdaq.

In currency markets, the euro traded at USD1.1933 from USD1.1987 at Tuesday's close in Europe, while the pound exchanged at USD1.3775 from USD1.3789 last night.

Among commodities, Brent traded at USD68.10 a barrel from USD66.83 a barrel on Tuesday, while gold was valued at USD5,285.10 an ounce from USD5,088.65 an ounce last night.

On Thursday's economic calendar, at 1100 CET, Italian industrial sales data is expected, and at 1110 CET, the 10- and 5-year BTP auction will take place.

At 1430 CET in the US, initial jobless claims will be released, followed by the trade balance and the import-export report.

At 2230 CET, the Federal Reserve's balance sheet will be published.

On the Milan Stock Exchange, results are expected from Brembo, Safilo, and STM.

By Michele Cirulli, Alliance News Reporter

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