European markets expected in the red; focus on ECB and BoE

(Alliance News) - On Thursday, major European indices are expected to open in negative territory, weighed down by deteriorating investor sentiment amid intensifying attacks on energy infrastructure in the Middle East and the Federal Reserve's maintenance of a restrictive monetary policy.

The US central bank left interest rates unchanged, in line with expectations, while signaling growing inflation risks linked to the conflict with Iran and rising energy prices.

"In the press conference, Powell did not provide precise guidance on the rate path, emphasizing the need to balance risks on the dual mandate and to keep inflation expectations anchored," explains Michael Brown, Senior Research Strategist at Pepperstone.

The European Central Bank and the Bank of England are also expected to leave rates unchanged later today, as their respective boards assess the effects of the Middle East conflict.

Among commodities, Brent jumped in the European pre-market to around USD115 a barrel, while spot gold fell to USD4,800 an ounce.

The FTSE Mib is called down 1.6% or 680.3 points after closing Wednesday down 0.3% at 44,741.34.

In Milan yesterday evening, the Mid-Cap closed up 0.2% at 53,546.64, the Small-Cap increased by 0.6% to 32,761.95, and Italy Growth rose by 0.5% to 8,368.29 points.

In Europe, London's FTSE 100 is forecast to drop 1.1% or 108.5 points, Paris's CAC 40 is indicated in the red by 1.3% or 103.4 points, and Frankfurt's DAX 40 is expected to fall 2.0% or 460.6 points.

On Piazza Affari, Intesa Sanpaolo - with gains of 0.8% - announced that its IMI Corporate & Investment Banking Division participated, alongside a pool of international and national banks, in a new EUR600 million ESG-Linked Term Loan credit line for Leonardo, which closed up 1.5%.

Regarding banking consolidation, potential adjustments to UniCredit's offer for Germany's Commerzbank cannot be ruled out; UniCredit shares fell 0.4%. In the background, the European Commission is studying a package of rules to limit the use of "Golden Power" by governments that effectively oppose the single market.

Eni announced it has taken Final Investment Decisions for the Gendalo and Gandang gas projects and the Geng North and Gehem fields, just eighteen months after the approval of the Development Plans in 2024. The stock fell 1.2% to EUR23.070 per share.

Terna, which recorded a 1.5% decline, reported a new increase in national electricity demand for February, up 2.1% compared to last year. Wind production was the main source of coverage, providing 2.8 billion kWh.

STM, down 0.4%, announced a collaboration with Nvidia to develop sensors in robotics through three distinct projects.

As investors begin to bet on the end of the war in the Middle East, luxury stocks, which had already shown an increase at the end of 2025, regained momentum. Confirming the trend was the bullish performance of Brunello Cucinelli, topping the Mib with a 4.2% gain to EUR75.86 per share.

The utility group moved to the bottom with declines for Hera and Enel at 3.5% and 3.4%, while Italgas and A2A fell by 2.7% and 1.8% respectively.

On the Mid-Cap, Ascopiave - down 1.4% at the end of the session - presents a solid growth profile in light of 2025 results and the industrial plan update to 2029, with improved estimates reflecting M&A contributions and a larger regulated base.

Brembo - which recorded an 8.2% contraction - closed 2025 with a net profit of EUR209.3 million, down from EUR262.6 million the previous year. The board will also propose a dividend of EUR0.30 per share, unchanged from last year.

MFE-MediaForEurope announced, through Group CEO Pier Silvio Berlusconi, a preliminary estimate of key 2025 consolidated financial indicators, highlighting an "extraordinary" year with net profit more than doubling compared to the EUR137.9 million recorded the previous year. Class A and Class B shares reacted positively, up 2.2% and 1.1%.

Rai Way, together with Rai - Radio Televisione Italiana, presented the Hyperscale Data Center project that Rai Way will build in Pomezia, near Rome. The stock closed up 1.4%.

PharmaNutra, following solid 2025 results, closed at the top with a 10% gain to EUR74.80 per share. Acea, however, hit the bottom of the basket, falling 11% to EUR22.00 per share.

On the Small-Cap, Mondo TV, which ended trading up 4.7%, signed a new agreement with the Albanian company Multimedia Entertainment to renew the distribution of several animated series titles in Albania.

Alantra initiated a positive review of Eurotech, upgrading its recommendation to "buy" from "hold" and raising the target price to EUR1.25 from EUR0.90, based on improved operational execution and valuation potential, indicating a 31% upside. The stock gained 3.4%.

Heavy selling hit The Italian Sea Group, which touched a 52-week low, dropping 30% to EUR0.736 per share. Revo Insurance, set to move to the Mid-Cap Index, saw gains of 4.9%.

Among SMEs, Recupero Etico Sostenibile - down 1.7% - acquired a business branch including a plant for the production of organic chemicals - biobased and biodegradable plastics - located in Termoli, for a fixed consideration of EUR2.7 million.

STAR7 announced Wednesday that it closed 2025 with a net profit of EUR3.2 million, down from EUR3.7 million in 2024. Adjusted net profit, however, increased to EUR8.5 million from EUR8.2 million the previous year. The stock closed flat at EUR8.35 per share.

Next Geosolutions Europe - up 3.4% - signed a financing agreement with Intesa Sanpaolo and Cassa Depositi e Prestiti to support the purchase of the new offshore vessel "NG Supporter," for a total investment of USD112 million.

SG Co approved the group's 2026-2030 industrial plan, "based on both organic growth and external development through M&A operations, with selective investments domestically and abroad." The stock gained 1.2%.

In New York on Wednesday, the Dow Jones closed down 1.6%, the S&P 500 fell 1.4%, while the Nasdaq lost 1.5%.

Among Asian markets, the Nikkei closed down 3.4%, the Shanghai Composite is down 1.4%, while the Hang Seng is shedding 2.1%.

On the currency front, the euro is trading at USD1.1462 from USD1.1515 on Wednesday evening, while the pound trades at USD1.3260 from USD1.3331 last night.

Among commodities, Brent is trading at USD115.03 a barrel from USD108.44 yesterday, while gold is worth USD4,779.80 an ounce from USD4,875.55 last night.

On Thursday's economic calendar, the UK interest rate decision will be announced at 1300 CET, followed by the Eurozone decision at 1415 CET.

US housing starts data is expected at 1300 CET, followed by jobless claims at 1330 CET.

At 1500 CET, also from the US, data on new home sales and trade sales will be released.

On Piazza Affari, results are expected from Enel, Mondadori, Recordati, and 11 other companies.

By Antonio Di Giorgio, Alliance News reporter

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