The sharp decline in the Tokyo stock exchange this morning, which closed its worst month since the 2008 financial crisis, added to the pressure as the escalating conflict in the Middle East weighs on investor appetite.
On the macro front, the spotlight today is on the preliminary estimate of the Eurozone Consumer Price Index. In March, inflation is expected to jump to 2.7% year-on-year, up from 1.9% in February, a figure that did not yet incorporate the impact of the Middle East conflict.
Regarding crude oil, prices are fluctuating as traders weigh reports of a potential de-escalation against the de facto continued closure of the Strait of Hormuz. Brent futures (LCOc1) are trading around 113 dollars per barrel, while Nymex (CLc1) stands at 102.84 dollars.
Around 9:30 CET, the FTSE Mib index is up a fractional 0.04%.
Banks are showing little movement, with heavyweights INTESA and UNICREDIT flat. BFF BANK failed to sustain a rebound; after a strong start, it erased all gains following yesterday's 55% collapse. The slump came after the Bank of Italy appointed two extraordinary commissioners to temporarily assist the Board. The central bank identified accounting issues that could generate additional "past due" exposures totaling up to 1.3 billion euros.
Conversely, TREVI is up sharply, gaining over 5% after yesterday's 34% plunge. The stock had been penalized by the announcement of a financial restructuring plan involving a 100 million euro rights issue to be completed by the third quarter of this year.
Profit-taking is hitting FERRAGAMO (-2.6%), which was well-bid yesterday following an upgrade to "outperform" from "underperform" by Bernstein. The brokerage "finally" sees encouraging signs in the brand's turnaround path despite - or perhaps because of - the absence of a CEO.
STM is also retreating, down 3.5%.
NEXI is in favor with a 2% jump, while selling pressure continues on LEONARDO (-1%). The stock has entered a bearish channel for four consecutive sessions, hitting 55 euros, its lowest level since mid-February.
Finally, NEW PRINCES surged over 6% following its 2025 results and the announcement of its intention to pursue further growth through M&A.
(Giancarlo Navach, editing Francesca Piscioneri)
