Europeans up ahead of U.S. inflation data

(Alliance News) - European markets meet forecasts and open the day higher on Thursday as investors await U.S. inflation data due this afternoon that will influence the Fed's next decisions.

"With the Federal Reserve raising rates another 25 percentage points in July, there is a sense that further hikes could be a long shot. That said, those expecting a linear process when it comes to slowing inflation may find that further weakening toward 2 percent may not be such an easy process," commented Michael Hewson, Chief Market Analyst at CMC Markets.

Thus, the FTSE Mib opens up 1.1 percent to 28,609.81, Mid-Cap rises 0.7 percent to 42,019.71, Small-Cap is up 0.5 percent to 26,977.22, and Italy Growth advances 0.2 percent to 8,896.07.

In Europe, London's FTSE 100 opens up 0.2 percent, Paris' CAC 40 rises with 1.3 percent and Frankfurt's DAX 40 is up 0.6 percent.

On the predominantly bullish main index of Piazza Affari, Saipem is immediately in the high quarters--green by 2.1% to EUR1.42 per share--after announcing Wednesday evening that it has been awarded a contract by Mellitah Oil & Gas BV Libyan Branch, a consortium formed by National Oil Corporation of Libya and Eni North Africa, for the development of Bouri Gas Utilisation Project worth about USD1 billion.

Doing better is only Banco BPM, up 2.3 percent. Also doing well is MPS, up 2.1 percent, while Intesa Sanpaolo rises 1.5 percent. On Monday it announced that it had provided a EUR2.5 million loan to Selene, a Lucca-based company that is a leading manufacturer of flexible plastic packaging for industrial use mostly made of polyethylene, with funding made available by the European Investment Bank.

FinecoBank opens in the black by 1.0 percent. The company last week reported that net inflows in July were confirmed at EUR486 million, in line with the estimates announced at the time of the first-half results.

Since the beginning of the year, inflows amount to EUR5.7 billion.

Assicurazioni Generali rises 0.8 percent after reporting in the first half of the year, normalized net income of EUR2.33 billion, up 61 percent from EUR1.44 billion as of June 30, 2022.

Operating income is up sharply to EUR3.72 billion, up 28 percent from EUR2.90 billion, partly due to diversification of profit sources, which includes the contribution of completed acquisitions.

Among the few bearish performers, Leonardo gives up 0.1 percent after reporting Wednesday that it confirmed its leadership in the private helicopter transport market by announcing new contracts in Latin America during official ceremonies at the LABACE 2023 show.

Gruppomodena became the official distributor for Leonardo's AW119Kx, AW109, AW169, and AW139 helicopter models in the civil market in Uruguay and Argentina and also signed a contract for two AW119Kx light single-engine aircraft.

On the Mid-Cap, Banca Popolare di Sondrio opens up 1.8 percent after ending up 2.5 percent thanks to a half-year with a record net profit of EUR207.1 million from EUR105.0 million in the same period a year earlier.

Net interest income amounts to EUR427.0 million up from EUR320.0 million in the first half of 2022.

Credito Emiliano rises 0.8 percent after approving on Monday its consolidated results for the first half of the year, a period closed with consolidated net income at EUR298.7 million from EUR157.0 million in 2022. Credem points out that it expensed EUR25 million in contributions to funds for the management of troubled banks in that perid. The result is up 90% from the same period last year.

Return on capital-annualized ROE-was at 17.9 percent, while annualized ROTE was 20.8 percent.

At the top is GVS with a rise of 3.8%. Of note, JPMorgan Asset Management revised short position on the stock to 0.68% from 0.71%.

On the Small-Cap segment, Greenthesis is still not pricing after closing up 1.1 percent and made it known that - through its wholly owned subsidiary company under Emirates law Ambienthesis Middle East DMCC - it has been contracted to carry out characterization activities, in the amount of approximately EUR100,000, functional to the subsequent remediation of hydrocarbon-contaminated land to be carried out in the Abu Dhabi industrial area.

Pierrel - trading at EUR1.63 per share - announced Monday that it has obtained marketing authorization in Ecuador for its Articaine-based dental anesthetic, Orabloc in the 1:100,000 formulation.

With the registration in Ecuador, Orabloc makes its entry into South America.

As of June 30, Tesmec Group - flat at EUR0.12 per share - had consolidated revenues of EUR125.3 million up from EUR113.3 million as of June 30, 2022, mainly due to the performance of the Energy and Rail segments. Specifically, revenues from product sales of EUR97.0 million as of June 30, 2023, up from EUR70.9 million as of June 30, 2022, and revenues from services and work in progress of EUR28.3 million, down from EUR42.4 million.

Among SMEs, Ecosuntek opens up with 2.7 percent after announcing Wednesday evening that Eco Trade, a 63.4 percent subsidiary, signed two preliminary agreements on July 31 to purchase the stakes held in + Energia Spa by Paolo Marinangeli for a 17.90 percent stake and by Soni Mar Srl for a 26.875 percent stake for a total share of about 45 percent.

The purchase involves a total price of about EUR21.3 million to be paid at the closing, expected by the end of October 2023. A sum of just under EUR1.3 million was paid as a down payment on Wednesday.

Laboratorio Farmaceutico Erfo is up 0.5 percent after announcing Wednesday that the board of directors reviewed some consolidated economic and financial operating data as of June 30, reporting revenues at EUR3.4 million up 21 percent from EUR2.8 million in the same period last year.

Ebitda is EUR1.03 million and adjusted Ebitda is about EUR1.02 million and equal to 30% of revenues.

Sicily by Car is up 1.6 percent. The company announced Wednesday that Giober Srl, linked to board member Giovanna Cavallini, bought 50,000 shares in the company.

The shares were taken over at an average price of EUR9.94 for a total of EUR497,000.

In New York on European night, the Dow closed 0.5 percent in the red at 35,123.36, the Nasdaq finished down 1.2 percent at 13,722.02, and the S&P 500 gave up 0.7 percent to 4,467.71.

In Asia, the Nikkei closed in the green 0.8 percent to 32,473.65, the Shanghai Composite finished up 0.3 percent to 3,254.56 and the Hang Seng was in the green 0.3 percent to 19,301.44.

Among currencies, the euro changed hands at USD1.1009 against USD1.0978 on Wednesday in closing European equities while the pound was worth USD1.2712 from USD1.2720 on Wednesday evening.

Among commodities, Brent crude is worth USD87.98 per barrel versus USD87.00 per barrel at last night's close. Gold, on the other hand, trades at USD1,919.92 an ounce from USD1,950.75 an ounce Wednesday night.

Thursday's economic calendar calls for the release of inflation data at 1000 CEST in Italy, and the ECB's monthly report is released at the same time.

At 1300 CEST it is the turn of OPEC's monthly report. Also from the US, at 1430 CEST comes data on unemployment claims, inflation and real incomes.

Among companies listed on Piazza Affari, results from Servizi Italia, Unipol and UnipolSai are expected.

By Chiara Bruschi, Alliance News reporter

Comments and questions to [e-mail]

Copyright 2023 Alliance News IS Italian Service Ltd. All rights reserved.