European markets retreat; defense and banks lead declines

(Alliance News) - On Friday, major European indices are trading in negative territory at mid-session, as investors remain focused on the Middle East and the implications of the ongoing conflict.

The FTSE MIB is down 0.9% at 43,316.16, the Mid-Cap is shedding 0.3% at 52,765.49, the Small-Cap is down 0.7% at 32,243.78, while Italy Growth is marginally lower at 8,355.86.

London's FTSE 100 is down 0.4%, Paris's CAC 40 is 0.7% lower, while Frankfurt's DAX 40 is shedding 1.2%.

Regarding macroeconomic news in Italy, Istat estimates that in February, trade with non-EU27 countries saw a cyclical increase in both flows, with imports rising more sharply by 8.5% compared to a 4.9% increase in exports.

In February, the trade surplus with non-EU27 countries amounted to EUR5.53 billion, up from EUR4.83 billion in the same month of 2025. The energy deficit of EUR3.36 billion is lower than a year earlier, when it stood at EUR4.80 billion. The surplus in non-energy product trade fell from EUR9.63 billion in February 2025 to EUR8.89 billion in February 2026.

In Spain, the annual inflation rate jumped to 3.3% in March, the highest level since June 2024, compared to 2.3% in February and expectations of 3.7%.

The increase was largely driven by rising prices for motor fuels and lubricants, due to the impact of the war with Iran.

Back in Milan, Nexi is performing well, rising 0.9% and rebounding following the announcement of Bernardo Mingrone's appointment as CEO and General Manager of the group, replacing Paolo Bertoluzzo.

Amplifon leads the gainers with a 2.7% rise, while Ferrari rounds out the top three, up 1.5%.

Banca Monte dei Paschi di Siena is also up, gaining 0.6%. According to press reports, Caltagirone - down 0.2% among mid-caps - could increase its stake in MPS, currently at 11.45%, ahead of the shareholders' meeting for the renewal of the board. The rumor remains unconfirmed, and any potential increase would stay below 15%.

The group re-entered the capital at the end of 2024 and increased its stake to 11.45% in early February.

Regarding the towers issue, Inwit - up 0.3% - is reportedly considering a complaint to Consob in the dispute with Fastweb+Vodafone and TIM over master service agreements and the tower joint venture.

The focus is on the proximity between the MSA termination and the JV announcement, as well as the absence of references to the last call right. Fastweb has already sent its termination notice, while TIM is expected to decide over the weekend. Meanwhile, the company is working on an injunction request to the Milan Court to suspend the termination, citing financial risks and high dependency on the two operators, which generate over 85% of revenues.

Among the decliners, Saipem is down 3.2%, but STMicroelectronics sits at the bottom, shedding 4.0%.

Defense stocks are slowing down, with Leonardo down 2.5% and Fincantieri falling 2.2%, as both stocks pull back after recent gains.

Following the 2025 results, analyst consensus on Fincantieri is focusing on a central element: the group's structural strengthening is now considered solid and lasting, moving beyond a reading linked to cyclical dynamics or temporary earnings improvements.

Kepler Cheuvreux maintains a positive view, upgrading its rating to "buy" with a revised target price of EUR16.50 from EUR18.50, highlighting results that exceeded expectations and the central role of defense in future growth.

Morningstar analysts see a genuine turnaround in profitability, with a model benefiting simultaneously from the expansion of the commercial cycle and defense growth. The focus is on the long term, with the view that Fincantieri is favorably positioned on two global trends set to endure. Morningstar confirms its target price of EUR23.00 and a "buy" recommendation.

All banks are in the red: BPER is shedding 2.2%, BPM 2.0%, UniCredit 1.8%, and Mediolanum 0.8%.

Unipol is also down, having confirmed its preliminary accounts this morning. The Bologna-based insurance company's stock is losing 1.6% after confirming it closed 2025 with a preliminary consolidated net profit of EUR1.53 billion, up from EUR1.12 billion in 2024, a 37% increase.

The board has proposed a dividend of EUR1.12 per share, up from EUR0.85 in the previous year, a 32% increase. The insurance group's net result stands at EUR1.21 billion, an increase of approximately 41% compared to EUR860 million as of December 31, 2024.

On the Mid-Cap, ENAV - down 0.5% - announced on Thursday that it has finalized the acquisition of 85% of AIView Group, a technology company active in drone services and unmanned systems, with a focus on artificial intelligence applied to data collection, analysis, and enhancement.

The consideration is EUR7.6 million, net of contractual adjustments, corresponding to an EV/Ebitda multiple of 7.5 times based on a 2025 Ebitda of EUR1.4 million.

Webuild is shedding 0.4%. The company announced on Thursday that the consortium formed by its subsidiary Fisia Italimpianti - with a 40% stake - and the Spanish company Acciona, has been awarded a EUR111 million project for the functional upgrading of the Naples East treatment plant.

SOL - up over 12% - closed 2025 with a net profit attributable to the group of EUR167.0 million, up from EUR147.7 million as of December 31, 2024. Consolidated 2025 turnover amounted to EUR1.78 billion, a 10% increase from EUR1.61 billion the previous year.

On the Small-Cap, Esprinet - down 1.4% - announced it has expanded its service offering and launched Innovexya, a new business unit dedicated to the development and integration of value-added services.

Brioschi - down 3.6% - closed 2025 with a consolidated total profit attributable to the group of EUR5.5 million, compared to a loss of EUR800,000 as of December 31, 2024. 2025 EBITDA stood at EUR3.6 million, down from EUR4 million the previous year.

Among the gainers, KME Group - up 4.7% - announced on Wednesday that its subsidiary KME SE has signed a binding contract worth EUR300 million with an affiliate of Apollo Capital Management to finalize the transaction announced on December 23, 2025.

Among SMEs, Arterra Bioscience is rising 8.5% after announcing on Friday that 2025 closed with a net profit of EUR2.0 million, up 50% from EUR1.3 million in 2024. The dividend was also increased to EUR0.15 from EUR0.13 the previous year.

Sales revenues amounted to EUR4.6 million, an 11% increase from EUR4.2 million in 2024.

Metriks AI is up 3.0% after announcing on Friday that it closed the 2025 financial year with a profit of EUR600,000, doubling from EUR300,000 the year before.

The value of production rose 45% to EUR8.3 million from EUR5.7 million in 2024. Revenues from sales and services reached EUR7.7 million, up 39% compared to EUR5.5 million on a 2024 pro-forma basis.

Finanza.tech - yet to be traded - announced it closed 2025 with a consolidated net loss of EUR2.2 million, compared to a profit of EUR160,000 as of December 31, 2024.

Consolidated revenues stood at EUR3.2 million, down from EUR7.2 million the previous year.

IDNTT, which is also not yet trading, announced on Thursday that the board approved the launch of a new share buyback and disposal plan, ahead of the expiration of the previous program scheduled for March 28.

The new plan will last 12 months, from March 30 to March 30, 2027, and provides for a maximum total value of EUR3 million, with the possibility of carrying out transactions in one or more tranches.

Ubaldi Costruzioni announced on Thursday that it was awarded, through a temporary association of companies led by Dussmann Service, a three-lot contract with an estimated total value of approximately EUR26.7 million and a duration of 48 months, extendable for another 12. Ubaldi Costruzioni's share is EUR12.7 million. The stock is down 0.8%.

In New York, the Dow Jones closed the session down 1.0% at 45,960.11, the Nasdaq lost 2.4% at 21,408.08, and the S&P 500 shed 1.7% at 6,477.16.

On the currency front, the euro is trading at USD1.1521 from USD1.1534 on Thursday evening, while the pound is trading at USD1.3312 from USD1.3337 yesterday evening.

Among commodities, Brent is trading at USD103.66 per barrel from USD108.77 per barrel on Thursday evening, while gold is worth USD4,453.97 per ounce from USD4,438.55 per ounce yesterday evening.

On Friday's economic calendar, speeches by FOMC members Barkin and Daly are scheduled between 1600 CET and 1630 CET.

By Claudia Cavaliere, Alliance News reporter

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