Markets slide as stagflation fears loom

(Alliance News) - Major European stock exchanges closed the first session of the week lower, weighed down by a fresh surge in energy prices and the re-emergence of inflationary fears, which are reigniting concerns on trading floors about a possible stagflation scenario.

The sharp rise in crude oil prices fueled fears that price pressures could push Eurozone inflation back above the ECB's 2% target. Markets consequently revised monetary policy expectations upward, with swaps now pricing in two 25-basis-point rate hikes by year-end.

As a result, the FTSE Mib fell 0.3% to 44,024.96, the Mid-Cap closed down 1.6% at 55,234.30, the Small-Cap shed 1.3% to 34,162.82, while Italy Growth retreated 1.3% to 8,372.61.

London's FTSE 100 closed 0.3% in the red, Paris's CAC 40 shed 1.0%, while Frankfurt's DAX 40 ended the session losing 0.8%.

Returning to Milan, on Piazza Affari's large-cap list, Leonardo was among the few gainers, rising 6.6% to EUR62.48 per share, driven by tensions in the Middle East.

Strength – with the price of a barrel soaring – was also seen in Eni and Saipem, up 2.3% and 4.8% respectively.

Prysmian, meanwhile, shed 2.1%, following Friday evening's 0.5% gain. Notably, AQR Capital Management reduced its short position on the stock to 0.68% from the previous 0.79%.

Assicurazioni Generali – down 0.7% – announced on Monday that it has reached an agreement to sell its P&C operations in Ireland and Northern Ireland to Zurich Insurance Europe and Zurich Insurance Company, UK Branch, both part of the Zurich Insurance group. Previously, the P&C business was managed through the Irish and British branches of Generali Spain under the RedClick brand. The value of the sale is EUR 337 million.

Brunello Cucinelli shed 3.8% to EUR72.18, propping up the blue-chip list. It is worth noting that JPMorgan Asset Management raised its short position on the stock to 1.11% from 1.05%, while Pertento Partners lowered its short to 0.48% from the previous 0.57%.

On the mid-cap segment, Alerion saw a boost, closing up 6.7% for its fourth consecutive bullish candle.

Avio – up 2.7% – announced on Friday that Defense Systems and Solutions selected the group for the development, qualification, and initial production of a solid propellant motor for air defense. Defense Systems and Solutions is a joint venture between Yulista Integrated Solutions and Science and Engineering Services, acting as a prime contractor for the US Department of War.

Brembo, however, shed 5.1%, despite announcing on Monday that it had signed an agreement with JAC Group, one of China's leading automakers, to develop an innovative synergy for future vehicles.

The board of Anima Holding – down 2.8% – approved net inflow data for February 2026, a month that closed with negative net inflows of EUR 560 million in asset management.

Banca Generali – down 1.1% – announced on Monday that it achieved net inflows of EUR710 million in February, bringing total inflows to EUR 1.2 billion since the start of the year. As explained by the company in a note, the quality of inflows was positive, highlighted by the increase in Assets under Investment flows compared to January, amounting to EUR322 million for the month and EUR384 million year-to-date.

In the Small-Cap sector, Class Editori showed strength, closing up 6.1%. The group, which publishes Milano Finanza, could become the subject of a corporate transaction, according to a report by Domani on Monday. Among the interested names is Leonardo Maria Del Vecchio, who is reportedly considering adding the economic-financial publication to Il Giorno, a daily newspaper whose publisher he controls through QN.

Maurizio Belpietro is also reportedly looking at Milano Finanza with interest, having long intended to strengthen his publishing hub with an economic newspaper after a failed 2022 attempt with Verità & Affari. Francesco Gaetano Caltagirone, publisher of Il Messaggero, also remains a figure to watch on the dossier, as he already holds about 5% of Class Editori and could play a role in the company's future developments.

Landi Renzo, meanwhile, recorded a 0.1% gain to EUR0.82, after two sessions closing in positive territory.

Banca Profilo ended the session shedding 4.6% to EUR0.15 per share, following a 2.1% drop in the previous session.

Among SMEs, Green Oleo closed up 4.6%, following Friday's 9.1% gain.

Growens shed 8.5%, after a 2.6% rise in the previous session, with a final price around EUR 2.17 per share.

Maps – down 1.3% – announced that it has been awarded a contract by the Puglia Region for the enhancement and expansion of technological systems supporting health prevention campaigns. Specifically, the company will evolve the application currently used by the Region for managing screening, vaccination, and infectious disease surveillance campaigns, with the aim of improving process efficiency and the quality of interactions with citizens. The contract provides for a fee to Maps of approximately EUR 1.3 million over a total duration of 24 months.

For Compagnia dei Caraibi, the negative balance was 4.9% at EUR0.37, following Friday's 1.0% gain.

In New York, the Dow Jones is down 0.5%, the S&P 500 is down 0.1%, while the Nasdaq is up 0.3%.

On the currency front, the euro is trading at USD1.1595 from USD1.1601 at Friday's European close, while the pound is trading at USD1.3404 from USD1.3394 on Friday.

Among commodities, Brent is trading at USD98.00 a barrel from USD90.83 on Friday, while gold is worth USD5,107.06 an ounce from USD5,147.68 on Friday.

Tuesday's macroeconomic calendar includes China's trade balance data at 0400 CET, followed by Germany's at 0800 CET.

At 1000 CET, it will be the turn of consumer price inflation data in Italy.

From the US, ADP employment data is due at 1315 CET, while weekly oil inventories will follow at 2130 CET.

Among Piazza Affari companies, results are expected from Banca Monte dei Paschi di Siena, Banca Popolare di Sondrio, Carel Industries, R&TL, Saipem, and Toscana Aeroporti.

By Maurizio Carta, Alliance News reporter

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