Futures Point to Higher Open; FOMC Shows Growing Dissent

(Alliance News) - On Thursday, European markets are poised for a positive open in the fourth session of the week, according to futures data. The US Federal Reserve has kept interest rates steady between 4.25% and 4.50% for the fifth consecutive meeting, as widely anticipated by markets.

However, the decision was marked by a notable signal of rising internal dissent: two governors voted in favor of a rate cut, a phenomenon not seen since as far back as 1993.

This split within the monetary policy committee reflects mounting concerns about the health of the economy. Policymakers noted that while fluctuations in net exports continue to impact the data, the most recent indicators suggest a moderation in economic activity during the first half of the year. This assessment stands in sharp contrast to previous estimates, which had forecast growth at a "robust pace."

The Fed reiterated that the unemployment rate remains low, while inflation persists at "somewhat elevated" levels, and uncertainty over the economic outlook continues to linger.

The central bank reinforced its message that any future "adjustments" to interest rates will depend on incoming data, the evolution of the economic outlook, and an assessment of the balance of risks. The Fed thus maintains a wait-and-see approach amid growing concerns that the ongoing trade war could undermine progress toward the 2% inflation target.

The FTSE Mib, after closing up 1.0% at 41,637.73 points, is showing a gain of 135.00 points in futures trading.

Paris' CAC 40 is up by 36.80 points, Frankfurt's DAX 40 is gaining 83.70 points, while London's FTSE 100 is registering a 19.00-point advance.

Among the smaller indices, the Mid-Cap closed slightly lower last night at 55,495.29, the Small-Cap slipped 0.3% to 32,826.95, and Italy Growth ended up 0.1% at 8,331.14 points.

Back to Piazza Affari, among blue chips last night, Intesa Sanpaolo stood out with a 4.2% increase to EUR5.416 per share. The bank reported net profit of EUR5.2 billion for the period, up from EUR4.8 billion in the same period last year. Furthermore, under CEO Carlo Messina, the bank upgraded its net profit forecast for 2025 to well above EUR9 billion.

BPER Banca also helped drive the index, rising 3.8% to EUR8.726 per share. Its public exchange offer for Banca Popolare di Sondrio aims to "achieve more than EUR2.0 billion in net profit with a CET1 ratio above 15% and a profitability around 15%," according to the CEO. Banca Popolare di Sondrio itself climbed 2.3%.

The session also ended in positive territory for Monte dei Paschi di Siena with a 2.5% gain, UniCredit up 2.1%, and Banco BPM up 1.6%.

Prysmian, buoyed by two EUR20 million partnerships with Next Geosolution--up 8.2% on the EGM--closed 2.5% higher.

Following Tuesday's half-year results, Amplifon shares plunged 25% to EUR14.95 per share.

Recordati and Stellantis also fared poorly, down 3.5% and 3.1% respectively.

Azimut Holding, through Azimut Alternative Capital Partners, sold its minority stake in RoundShield Partners as part of a deal transferring control of the company to Harrison Street. The stock gained 0.5%.

Snam--down 0.1%--reported on Monday that it closed the first half with adjusted net profit of EUR750 million, up 8.5% from EUR691 million in the same period of 2024.

Hera closed the first half with net profit of EUR249.4 million, up 5.1% from EUR237.3 million in the same period of 2024. Despite the results, the stock slipped 1.9%.

Leonardo reported first-half net profit of EUR542 million, slightly down from EUR555 million in the same period last year. The stock edged up 0.2%. Late in the session, the company also announced the acquisition of Iveco Defence for EUR1.7 billion.

On the Mid-Cap, the best performance was by Fincantieri, up 2.3%, which closed the first half with net profit of EUR35.0 million, a significant improvement from a EUR27.0 million loss in the same period of 2024.

Ariston Holding gained 2.2%.

Alerion Clean Power closed the first half with net profit of EUR5.8 million, down from EUR17.9 million in the same period of 2024. The stock ended the day down 1.9%.

GVS was the worst performer on the index, falling 3.0% to EUR4.87 per share.

Despite rising revenues and double-digit profit, Iren closed down 2.8%.

Webuild also declined, down 0.6%.

On the Small-Cap, Sogefi recorded the biggest gain, up 4.7% to EUR2.75 per share.

Enervit, which reported net profit of EUR3.0 million--up 12% from EUR2.7 million as of June 30, 2024--rose 3.5%.

Elica closed the first half with a loss of EUR1.4 million, compared to a profit of EUR1.8 million in the same period of 2024. The stock dropped 0.7% in response.

Bestbe Holding ended the session down 11%. The company's monthly balance remains negative at 35%.

Among SMEs, Doxee topped the list with a 6.4% rise.

STAR7 closed the first half with preliminary consolidated revenues of about EUR60 million at constant exchange rates, in line with the first half of 2024. At current rates, revenues were approximately EUR59.0 million. The stock advanced 0.8%.

Promotica--down 2.8%--posted preliminary consolidated revenue of EUR67.2 million, up 11% from EUR60.7 million in the same period of 2024.

Valtecne, with no trades, closed the first half with pro-forma revenue of EUR19.4 million, down 5.3% from EUR20.5 million in the same period of 2024.

In New York, during the European evening, the Dow Jones slipped 0.4%, the Nasdaq closed up 0.2%, and the S&P500 closed down 0.1%.

Among Asian markets, the Hang Seng is down 1.5%, the Nikkei is up 1.1%, and the Shanghai Composite is down 1.0%.

On the currency front, the euro is trading at USD1.1448 from USD1.1481 at Wednesday's close, while the pound is trading at USD1.3276 from USD1.3289 last night.

In commodities, Brent crude is trading at USD72.31 from USD72.85 per barrel at the previous close, while gold is valued at USD3,302.76 from USD3,301.78 per ounce last night.

On Thursday's economic calendar, at 0845 CEST, France's consumer price indices are due, followed by German unemployment data at 0955 CEST.

At 1000 CEST, focus shifts to Italy's unemployment rate and, at the same time, Germany's consumer price index.

At 1100 CEST, attention turns to Italy's inflation rate and the Eurozone's unemployment rate.

US employment data will be released at 1430 CEST.

From Piazza Affari, half-year results are expected from Mondadori, Ariston, A2A, Azimut, Mediolanum, among others.

By Maurizio Carta, Alliance News Reporter

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