Indices in the red; Brent rises toward USD109

(Alliance News) - Major European indices continued on a bearish trajectory on Friday, with Brent futures reaching the USD109 mark as risks in the Strait of Hormuz persist due to the stalemate in peace talks between the US and Iran.

US President Donald Trump warned Iran on Thursday to reach a deal or face 'annihilation', stating that his patience with Tehran was running thin.

Optimism for a lasting ceasefire also faded following the US-China summit. Although Trump and Xi Jinping agreed on the need to keep the Strait of Hormuz open and prevent Iran from acquiring nuclear weapons, 'the conflict remained in a diplomatic deadlock, with Iran continuing to reject demands to surrender its enriched uranium stockpiles while leveraging its control over the waterway', commented Samer Hasn, Senior Market Analyst at XS.com.

Meanwhile, the IEA reported that crude and fuel flows through the Strait fell by approximately 4 million barrels per day in March and April, warning that the global oil market could remain significantly undersupplied until October, even if the conflict were to be resolved next month.

Consequently, the FTSE Mib shed 1.7% to 49,180.50 points, the Mid-Cap gained 0.3% to 60,684.52 points, the Small-Cap lost 0.2% to 34,528.83 points, while Italy Growth retreated 0.2% to 8,890.91 points.

London's FTSE 100 is down 1.4%, the Paris CAC 40 shed 1.3%, while the Frankfurt DAX 40 fell 1.7%.

Returning to Milan, on Piazza Affari's blue-chip index, Saipem took the lead with a 0.7% gain. Among the few gainers were Avio, Eni, and Amplifon, all trading between 0.4% and 0.4% higher.

Leonardo is in fractional green. The group announced Thursday that the Peruvian Air Force has ordered an additional C-27J Spartan multi-role transport aircraft as part of its program to strengthen air mobility capabilities, taking into account the complexity of the geographical location, terrain, and the need to reach remote areas.

Telecom Italia - up 0.2% - announced Thursday that Fitch has upgraded the group's rating to 'BB+' from 'BB', confirming a Stable outlook.

Unipol shed 0.5% after announcing Friday that it closed the first quarter of 2026 with a reported consolidated net result of EUR329 million, up 15% from EUR285 million as of March 31, 2025.

Consolidated direct insurance premiums rose to EUR4.81 billion from a normalized figure of EUR4.49 billion as of March 31, 2025, representing 7.1% growth.

Among the laggards, BPER Banca dropped 2.5% on the floor with shares pricing at EUR12.422. UBS cut its recommendation to 'neutral' from 'buy' and lowered the target price to EUR12.50 from EUR13.50.

STMicroelectronics sat at the bottom of the main index, down 4.7%, after two sessions closed with bullish candles.

On the Mid-Cap, Technoprobe remains sharply higher as at the opening, marking a 33% jump to EUR26.40 per share. Deutsche Bank raised its target price to EUR35.00 from EUR19.50 with a 'buy' recommendation.

The company announced Thursday that it closed the first quarter with consolidated revenues of EUR187.0 million, up 19% compared to the same period last year.

Consolidated Ebitda amounted to EUR69.2 million, a 44% increase over the first quarter of 2025.

Strength was also seen in Carel Industries, in second place. The stock advanced 8.2%. The company announced Thursday that it closed the first quarter of 2026 with a consolidated net profit of EUR18.4 million, up 82% from EUR10.1 million in the same period of 2025.

WIIT also performed well, rising 5.1%. On Wednesday, the board approved the consolidated accounts as of March 31, 2026, closing the first quarter with an adjusted net profit of EUR4.1 million, substantially stable compared to EUR4.3 million in the same period of 2025.

ERG rose 2.3% after announcing Friday that it closed the first quarter of 2026 with an adjusted group net result of EUR61 million, up 24% from EUR49 million in the first quarter of 2025.

Webuild fell 4.5% despite the group announcing that it has recorded EUR3.0 billion in new orders since the beginning of the year, entirely from low-risk markets.

Of these, approximately EUR1.0 billion includes tenders where Webuild was the best or sole bidder. These are joined by initiatives in the energy and water sectors, including the Kwinana gas-fired power plant near Perth, Australia, and a wastewater treatment plant in Naples, Italy.

These contracts are supported by a short-term commercial pipeline valued at approximately EUR99 billion, concentrated in developed countries where Webuild has a consolidated presence.

The board of Alerion Clean Power - up 4.1% - approved the first-quarter consolidated results on Thursday, highlighting sustained operational growth driven by increased electricity production.

During the period, operating revenues stood at EUR44 million, up 18% from EUR37.3 million in the first quarter of 2025.

Salvatore Ferragamo shares ended at the bottom of the list, shedding 13% following its results. On the stock, JPMorgan raised the target price to EUR8.00 from EUR7.50 with a 'neutral' recommendation. On Thursday, it announced that in the first quarter of 2026, total group revenues stood at EUR209 million, down 1.2% at constant exchange rates and 5.5% at current exchange rates compared to EUR221 million in the same period of 2025.

On the Small-Cap, EPH remained firmly at the top with a 7.3% rise.

On the other side of the list, Esprinet shed 7.6% after closing up more than 9%. The company announced Thursday that V-Valley, a group company focused on the distribution of Advanced Solutions, signed a partnership with Meferi, a leading Asian manufacturer in the AIDC (Automatic Identification and Data Capture) sector.

doValue shed 0.9% after announcing Thursday that it closed the first quarter of 2026 with a consolidated net result excluding non-recurring items of negative EUR1.1 million, compared to a profit of EUR9.1 million the previous year.

Consolidated gross revenues stood at EUR120.3 million, down 15% from EUR141.4 million in the first quarter of 2025. Net revenues decreased 17% to EUR106.7 million from EUR128.2 million. Managed Gross Book Value stood at EUR132.52 billion compared to EUR135.89 billion at the end of 2025.

Selling pressure hit EuroGroup Laminations - down 1.1% - which announced Thursday that it had signed a five-year medium-to-long-term financing agreement for a total amount of up to EUR375 million with a pool of institutions including BNP Paribas Italian Branch, BNL BNP Paribas, Intesa Sanpaolo, UniCredit, Crédit Agricole Italia, Cassa Depositi e Prestiti, Banco BPM, and Deutsche Bank.

The board of Eurotech - down 3.0% - approved the interim consolidated financial report as of March 31 on Thursday, closing the period with a group net loss of EUR2.6 million, an improvement compared to the loss of EUR500,000 recorded as of March 31, 2025.

Gabetti - in the red by 4.1% - announced Thursday that it closed the first quarter with operating revenues amounting to EUR20.7 million, down from EUR27.2 million recorded in the same period of 2025.

The decline, the company explained, is attributable to Gabetti Lab and the Contracting activity, which in the first quarter of 2025 still benefited from work related to the final phase of contracts on RSAs linked to the superbonus.

Among SMEs, Erredue advanced 8.0% while Ecosuntek rose 3.7%. The company announced Friday that it had reviewed certain consolidated management KPIs as of March 31, 2026, highlighting growth in electricity and gas sales thanks primarily to its subsidiary Eco Trade and associate +Energia.

Promotica extended its gains, rising 5.3% after announcing Thursday that it closed 2025 with a consolidated net profit of EUR3.9 million, up 147% from EUR1.6 million in 2024.

The board of directors will propose to the shareholders' meeting the distribution of an ordinary dividend of EUR0.15 per share, with the ex-dividend date scheduled for July 13, record date July 14, and payment on July 15.

Renovalo advanced 2.0% after announcing Friday that, as of March 31, the value of already contracted orders amounts to over EUR40 million. Of this amount, public contracts represent 50% of the total 'in line with the strategic guidelines defined by management', the company note read.

IDNTT - flat at EUR3.24 per share - announced Thursday that it closed 2025 with an adjusted net profit that grew 26% to EUR1.7 million from EUR1.4 million in 2024, while reported net profit fell to EUR547,000 from EUR1.2 million the previous year due to extraordinary and non-recurring components of EUR1.2 million compared to EUR200,000 in 2024.

In Asia, the Nikkei closed down 2.0%, the Hang Seng shed 1.6%, while the Shanghai Composite fell 1.0%.

On the currency front, the euro changed hands at USD1.1623 from USD1.1675 on Thursday evening, while the pound traded at USD1.3339 from USD1.3480 yesterday.

Among commodities, Brent traded at USD109.10 a barrel from USD105.03 a barrel on Thursday evening, while gold was worth USD4,546.58 an ounce from USD4,686.15 an ounce at yesterday's close.

On Friday's economic calendar, Spanish consumer confidence will be released at 1200 CEST.

Focus shifts to the US starting at 1515 CEST with industrial production.

By Chiara Bruschi, Alliance News reporter

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