Mixed start for European markets; focus on manufacturing PMIs

(Alliance News) - On Monday, major European indices are expected to open without a clear direction, with Piazza Affari projected in positive territory while London and Paris are seen below par.

With May now behind us, it can be said that the old adage 'sell in May and go away' failed to materialize, comments Ipek Ozkardeskaya, Senior Analyst at Swissquote.

Despite geopolitical tensions, rising inflation and yields, and signs of an economic slowdown, major global equity indices continued to hit new highs, driven by technology and AI-related stocks. Earnings reports and guidance sustained the rally, allowing investors to largely overlook the conflict in the Middle East.

However, attention remains focused on oil. US crude is holding near USD90 per barrel following new US strikes against Iranian targets and limited progress in negotiations.

In Europe, indices such as the Stoxx 600 and FTSE 100 continue to underperform relative to the S&P 500, penalized by lower technology exposure.

Meanwhile, US GDP disappointed expectations, Canada entered a technical recession, and Chinese PMI data provided mixed signals. This week, the focus will shift to the US labor market, with expectations for approximately 95,000 new non-farm payrolls and wage growth of 3.5%.

During the morning, manufacturing PMIs for the major European economies will be released.

Consequently, the FTSE MIB is tipped to open up 0.2% or 91.3 points, after closing Friday up 0.4% at 50,036.75.

In Europe, London's FTSE 100 is expected to open 0.3% lower, Paris's CAC 40 is indicated down 0.1%, while Frankfurt's DAX 40 is expected to gain 0.1%.

In Milan on Friday evening, the Mid-Cap rose 0.2% to 62,235.53, the Small-Cap advanced 0.8% to 35,842.39, and Italy Growth gained 0.7% to 9,100.44 points.

On the MIB, UniCredit, which rose 1.8% by the close, announced the launch of a new actively managed open-end thematic certificate utilizing Bitcoin and Ethereum, intended exclusively for professional clients in Italy and Germany.

For Stellantis, which saw a daily decline of 1.9%, partnerships with Tata Motors and Jaguar Land Rover are not intended for expansion into the European market. This was reported to Reuters by the group's European head, Emanuele Cappellano.

'We did not plan to develop these joint ventures for the US and India with Europe in mind. If there were any advantage, such as a product opportunity, we might consider it, but at the moment it is not our main priority,' Cappellano stated.

Fincantieri - with sales of 1.8% at EUR11.835 - announced Friday that VARD, the group's Norwegian subsidiary and one of the world's leading builders of specialized vessels, signed a new contract with the US research organization Inkfish for the design and construction of an innovative deep-water research vessel. The order value amounts to approximately EUR700 million.

Eni, through Eni Industrial Evolution, and Seri Industrial Spa announced Friday that they have reached an agreement for the joint development of an integrated industrial supply chain in the lithium iron phosphate battery sector. Eni's stock shed 0.5% to EUR22.53 per share.

Regarding M&A rumors, preliminary contacts between MPS - the most traded stock by value, which saw gains of 1.2% - and Banco BPM - up 0.6% - reportedly began in the weeks following the Siena shareholders' meeting.

According to reports, any developments remain tied to the technical timing of the operation and the role of Crédit Agricole, the largest shareholder of Banco BPM with 22.9%. Among the hypotheses under study is the sale of branches in areas where the two groups overlap, while the data room for Banca del Mezzogiorno is expected to open by the end of May.

Nexi took the lead with a 2.0% gain to EUR3.51 per share, while Amplifon showed more strain with a 2.1% decline.

On the Mid-Cap, OVS - flat at EUR5.60 - announced that the shareholders' meeting approved the 2025 financial statements and the distribution of a dividend of EUR0.14 per share, with the ex-dividend date on June 22 and payment on June 24. Additionally, a EUR20.0 million buyback was launched.

BFF Bank, which gained 5.4%, topped the list with an 8.5% rise to EUR2.898 per share, while d'Amico positioned itself among the worst performers with sales of 4.5% at EUR7.005 per share.

Of note was El.En, up 5.1% at EUR19.95, which touched its 52-week high today.

Among small caps, Mondo TV approved its consolidated financial statements as of December 31, 2025, on Friday, reporting a loss of EUR4.0 million, narrowed from the EUR23.9 million loss recorded on December 31, 2024. Revenue from sales and services amounted to EUR1.7 million, down from EUR4.4 million the previous year. The stock surged by double digits, gaining 27%.

Landi Renzo - down 2.7% - announced that the board approved two strategic operations as part of the group's reorganization: the merger by incorporation of its subsidiary Metatron and the partial demerger of the 'Green Transportation' business into a new wholly-owned company.

Trevi Finanziaria Industriale, which fell 1.6%, signed a medium-to-long-term bank loan agreement for EUR180 million with a pool of leading financial institutions, as part of the financial maneuver approved by the board of directors on March 29.

Among SMEs, Ambromobiliare - up 0.9% at the end of the session - announced the publication of the document relating to the mandatory total exchange offer for 4AIM Sicaf, following the announcement released on April 24. The transaction involves 34,336 shares of 4AIM, representing approximately 45% of the share capital not yet held by the offeror, including 31,026 shares of Compartment 1 and 3,310 shares of Compartment 2.

The shareholders' meeting of Diadema Capital, which gained 4.9%, approved the withdrawal of ordinary shares from trading on Euronext Growth Milan. The company believes that, once at least five trading days have passed since the Borsa Italiana notice, the delisting could become effective from June 10.

Power Conversion Holding, a subsidiary of Strategic Power Holding, announced a voluntary total tender offer for Braga Moro aimed at delisting from Euronext Growth Milan. The offer concerns up to 1.04 million ordinary shares, approximately 49.8% of the fully diluted capital, for a maximum outlay of EUR7.2 million. Braga Moro's stock soared by 85%.

iVision Tech, up 12% at the end of the day, announced progress in the internationalization of the iSee project, assistive glasses for the blind and visually impaired, with the acceptance of the patent application in the USA.

Metriks AI, which gained 4.0%, announced on Friday an investment of EUR150,000 in EdiBeez, the publishing company of the BeBeez and BeBeez International platforms, with the aim of developing new AI-based solutions for the private capital information sector.

In New York on Friday evening, the Dow gained 0.7%, while the Nasdaq and S&P 500 both advanced 0.2%.

In Asia, the Nikkei is up 0.7%, the Hang Seng is rising 0.8%, while the Shanghai Composite is down 0.1%.

On the currency front, the euro is trading at USD1.1651 from USD1.1684 on Friday evening, while the pound is trading at USD1.3463 from USD1.3438 on Friday evening.

Among commodities, Brent is trading at USD93.35 per barrel from USD90.74 on Friday evening, while gold is worth USD4,522.53 per ounce from USD4,478.41 at Friday's close.

On Monday's economic calendar, the Italian manufacturing index is due at 0945 CEST, followed by Spanish registration data at 1300 CEST. The US manufacturing PMI is scheduled for 1600 CEST.

No significant corporate announcements are expected.

By Antonio Di Giorgio, Alliance News reporter

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