(Alliance News) - Major European equity indices are expected to open lower on Monday, following declines in Asian markets and Friday's negative close on Wall Street.

The FTSE MIB is called down 1.1% or approximately 565.0 points, after closing Friday down 0.6% at 49,893.05.

In Europe, London's FTSE 100 is expected to open 0.7% lower, Paris's CAC 40 is indicated down 1.4%, while Frankfurt's DAX 40 is anticipated to drop 1.6%.

The macroeconomic backdrop remains fragile. Rising oil prices, up 4% due to Middle East tensions, are fueling inflation expectations.

The recent sell-off in technology stocks was triggered by robust US labor data, which bolstered expectations for further Federal Reserve rate hikes, alongside concerns over cooling future demand for AI chips and memory.

The Italian trading week opens under the sign of banking consolidation, with Banca Monte dei Paschi di Siena at the heart of interest from Banco BPM and Intesa Sanpaolo.

Specifically, Banco BPM has proposed a merger of equals to MPS to create Italy's second-largest banking group.

The deal would generate synergies exceeding EUR1.1 billion, a CET1 ratio of 15%, a market capitalization above EUR50 billion, and a steady-state net profit of approximately EUR6 billion, with estimated value creation of at least EUR5.5 billion.

Meanwhile, Intesa Sanpaolo has launched a public exchange and purchase offer (OPAS) for MPS, offering 16 of its own shares for every 10 shares tendered plus EUR1 in cash, representing premiums of up to 18.7%.

The transaction involves the sale of 635 MPS branches to Unipol for a consideration between EUR3 billion and EUR3.5 billion, targeting a net profit of over EUR16 billion by 2029, with annual synergies of EUR2.9 billion.

Returning to Milan, on Friday evening, the Mid-Cap lost 0.9% to 61,540.98 points, the Small-Cap fell 0.8% to 35,257.63 points, while Italy Growth edged up 0.3% to 9,168.52 points.

On the blue-chip index, Inwit outperformed the field, finishing at the top with a 3.3% gain on over 2 million shares traded, following Thursday's momentum.

Caisse De Depot Et Placement Du Quebec trimmed its short position in Inwit to 0.56% from 0.68%.

Italgas and Campari saw healthy buying, closing up 3.1% and 2.0% respectively.

Hera gained 2.1% after presenting its 2029 industrial plan on Friday to the mayors of the 25 municipalities served in the Rimini area, confirming strategic pillars focused on development, resource regeneration, carbon neutrality, resilience, and shared value creation.

Over the 2025-2029 period, the multi-utility will invest over EUR5.5 billion, including EUR250 million in the Rimini province, an increase of approximately EUR36 million compared to the previous 2024-2028 plan.

Terna advanced 1.8% after announcing on Thursday the renewal of its EMTN bond program, increasing the maximum aggregate amount to EUR6 billion from EUR4 billion.

Fincantieri shares moved forward by 1.7% in the final session of the week.

Telecom Italia edged up 0.2% after announcing on Friday a strengthened partnership with Dazn ahead of the 2026 FIFA World Cup, with a new agreement expanding access to tournament content. TIM customers can now subscribe to the Dazn World Cup Pass, according to a company statement.

FinecoBank closed up 0.2% at EUR20.94. Berenberg raised its target price to EUR27.00 from EUR26.50 with a 'buy' rating.

Among the laggards, Stellantis shed 3.2%, erasing Thursday's gains. The group announced on Friday the expansion of decarbonized energy use at its European plants, where 68% of electricity consumption is already covered by low-emission sources.

The group aims to increase on-site energy self-consumption to 31% of total requirements by 2026, with the most advanced sites reaching levels of up to 80%.

Prysmian also faced selling pressure, retreating 3.5% in its third consecutive bearish session.

STMicroelectronics sat at the bottom of the main index, falling 5.9% after a 2.6% drop the previous evening. STM saw turnover of EUR244.2 million.

On the Mid-Cap, ERG performed well, closing 5.9% higher at EUR24.64 per share after Kepler Cheuvreux upgraded the stock to 'buy' and raised the target price to EUR27.00 from EUR24.00.

d'Amico saw solid buying, advancing 3.1% and rebounding from the previous day's decline.

Salvatore Ferragamo took a step back, finishing 1.1% lower at EUR9.20. Barclays revised its target price on the stock to EUR5.70 from EUR5.50 with an 'underweight' rating.

Technoprobe recorded the highest turnover in the basket, ending down 4.3%.

LU-VE anchored the mid-cap list, falling 5.4% in its third straight session of losses.

On the Small-Cap, Olidata soared by double digits, posting a 13% gain.

Triboo - down 2.0% - announced on Thursday that the new board of directors confirmed Giulio Corno as CEO with executive powers for ordinary management, and also confirmed the powers previously granted to Chairman Riccardo Maria Monti.

Trevi Finanziaria Industriale faced downward pressure, falling 3.5%. The company announced Friday that Consob approved the prospectus for Trevifin's rights issue of up to EUR100 million.

The board set the offer price at EUR2.00 per new share - including EUR1.95 as a share premium - representing a 34.94% discount to the theoretical ex-rights price.

Aeroporto Guglielmo Marconi Di Bologna - down 0.7% - reported after the close that 1.1 million passengers passed through in May, a 2.9% increase compared to the same month last year.

EPH ended down 9.5%, snapping a four-session winning streak.

Among SMEs with the highest turnover, Espe advanced 1.7%, eVISO closed up 1.6%, while ICOP finished 3.0% higher.

Kruso Kapital - down 1.0% - announced Friday the completion of the acquisition of a pledge credit portfolio from a long-standing Ligurian operator, adding approximately EUR1.6 million in loans and about 800 customers to the company's network.

iVision Tech slipped 0.8% - it announced Friday that Henry Jullien's e-commerce platform surpassed 1,000 units sold of the Pacific S 01 model, the eyewear that gained international media attention recently after being worn by French President Emmanuel Macron during the World Economic Forum in Davos.

Longino & Cardenal - down 2.6% - announced Friday the launch of a share buyback and disposal program following authorization from the shareholders' meeting on April 27.

The company has allocated a maximum value of EUR200,000 to the program.

Among the stocks at the bottom of the alternative list, Ecomembrane shed 4.6%. The company announced Friday that its 55%-owned subsidiary SBS Solar received an order worth approximately EUR1.0 million under a framework agreement announced in 2024 with a major energy operator.

In New York on Friday night, the Dow lost 1.4%, the Nasdaq retreated 4.2%, while the S&P 500 fell 2.6%.

In Asia, the Nikkei is down 4.4%, the Hang Seng is falling 1.8%, while the Shanghai Composite is 2.0% lower.

On the currency front, the euro is trading at USD1.1518 from USD1.1534 on Friday evening, while the pound is at USD1.3327 from USD1.3358.

Among commodities, Brent crude is trading at USD97.30 per barrel from USD93.43 on Friday evening, while gold is valued at USD4,292.48 an ounce from USD4,340.09 at Friday's close.

Monday's macroeconomic calendar includes the Eurozone Sentix Investor Confidence index at 1030 CEST.

In the afternoon, at 1500 CEST, France will hold three BTF auctions with 3-month, 6-month, and 12-month maturities.

The day will conclude at 1730 CEST in the US with 3-month and 6-month Treasury Bill auctions.

No major corporate announcements are expected from Piazza Affari companies.

By Antonio Di Giorgio, Alliance News reporter

Comments and questions to redazione@alliancenews.com

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