Europeans up ahead of US CPI; Brent up

(Alliance News) - On Monday, major European stock markets recovered after last week's poor finish, while oil prices also continued to follow an upward trend driven by hopes of strengthening U.S. demand.

"Friday's gloomy mood eased somewhat today and stocks tried to regain lost ground," comments Chris Beauchamp, Chief Market Analyst at IG, "But it promises to be an eventful week, with U.S. CPI and the start of the earnings season on the calendar. After a mixed start to July, investors are certainly hoping for better news, but as Friday's payrolls data show, recession is still a long way off and more rate hikes are expected as a result."

"Oil prices were supported by diminishing signs of a U.S. recession and held up today despite weaker Chinese data overnight. A pickup in demand expectations would be ideal after months of recession fears, and could at least provide some good news for the energy sector at this month's earnings release," the analyst concluded.

Thus, the FTSE Mib marks a 0.3 percent rise to 27,872.00, as does the Mid-Cap which finishes up at 42,256.46, the Small-Cap is in fractional green at 26,708.81 while Italy Growth closed up 0.4 percent at 9,080.04.

In Europe, London's FTSE 100 closed up 0.2 percent while Paris' CAC 40 rallied 0.5 percent as did Frankfurt's DAX 40.

On the main index in Piazza Affari, FinecoBank took home 3.3 percent ending the day on top of the list. Marshall Wace let it know that it has cut its short position to 1.41 percent from 1.53 percent.

Also doing well were BPER Banca, up 2.%, and Leonardo, up 2.1%.

Azimut Group - in the green by 1.4 percent - reported on Monday that it recorded positive net inflows of EUR802 million in June 2023, reaching EUR3.7 billion since the beginning of the year, with a target for the full year 2023 of between EUR6 and EUR8 billion.

In the first half of the year, nearly 60 percent of net inflows - amounting to EUR2.2 billion - were directed into asset management products. Total assets including assets under administration stood at EUR85.3 billion at the end of June, of which EUR57.8 billion refer to assets under management.

Banca Generali - in the black by 0.5 percent - reported Monday that it achieved net inflows of EUR527 million in June, bringing the total value realized since the beginning of the year to EUR3.26 billion, up 7 percent from the same period last year.

Banco BPM, on the other hand, advances 1.4 percent. Of note, the bank announced Monday that Adolfo Pellegrino has joined the bank's management team as chief innovation officer as of the beginning of July.

A down start to the week for Nexi, which is grappling with a debt reduction plan that will go through the sale of non-strategic assets. The backdrop remains positive after Fitch's rating upgrade came last week, especially in relation to the ECB's plans on the digital euro. The stock gives up 0.8 percent.

On the cadet segment, Safilo Group closed up 2.6 percent after announcing Monday that the board of directors appointed Michele Melotti as its new CFO effective Aug. 28.

Maire Tecnimont ended the day up 3.5 percent, doing better than all, after announcing Friday that it had bought back 551,200 of its own shares between June 30 and July 6 at a weighted average price of EUR3.575 and for a total consideration of EUR1.9 million. With this transaction, the company has taken over all the shares to service the plan, which is, therefore, completed. In light of the purchases, the company now holds 1.2 million of its own shares.

At the other end of the list are Cementir Holding, down 2.0 percent, and Arnoldo Mondadori Editore, which gives up 1.6 percent.

On the Small-Cap, boost on Pierrel, which advances with 9.7% and takes the top spot after announcing that on Wednesday evening the board of directors set the final terms and conditions of the capital increase, to be offered in option to those entitled for a maximum amount of EUR70 million, including share premium, to be paid in cash, also by offsetting certain, liquid yet not yet due receivables.

SIT closes up with 3.1 percent. Together with e-Novia, it informed on Monday that it has formed the company Hybitat, which will aim to build an innovative hydrogen generation and storage system for residential use.

"e-Novia's expertise in deep tech innovation and SIT's technical-industrial expertise in residential heating and air conditioning systems are the assets provided by the companies for the launch of Hybitat in a market segment with great growth potential," reads the note released by SIT.

Among SMEs, Esautomotion -- in the green by 2.4 percent -- on Monday disclosed that it had finalized the company's acquisition of 65 percent of the share capital of a newly established company, Sangalli Servomotori, the NewCo.

Under the terms of the investment agreement, the total consideration for the purchase of NewCo's entire share capital amounts to a total of EUR10 million from which any positive net financial position-or net financial debt-of NewCo as of July 7, subject to adjustment mechanisms similar to those usual for similar transactions, is to be deducted.

Alfonsino gives up 3.9 percent. On Monday it announced that a wholly owned subsidiary called Rushers Srl was formed on July 6 to pursue the development, through beta testing, "of the open market platform dedicated to the delivery of any good, which allows supplier companies to interact directly with their consumers, guaranteeing the latter the possibility of having access to professional delivery services, offered by a network of independent couriers," the company explained in a note.

In New York at the height of trading, the Dow is up 0.5 percent, the Nasdaq is in fractional green while the S&P 500 is in the green by 0.1 percent.

Among currencies, the euro changes hands at USD1.0985 versus USD1.0949 at Friday's European stock close.

By contrast, the pound is worth USD1.2827 from USD1.2830 on Friday evening, up about 6 percent since the beginning of the year.

Among commodities, Brent crude is worth USD78.35 per barrel compared to USD77.47 per barrel at Friday's close. Gold, on the other hand, trades at USD1,922.55 an ounce from USD1,935.50 an ounce on Friday evening.

Tuesday's economic calendar opens with the Japanese money supply at 0150 CEST. This is followed at 0800 CEST by the average wage index and unemployment data from the UK while the consumer price index from Germany at the same time.

At 1000 CEST from Italy comes the industrial production for May while at 1100 CEST the ZEW index from Eurozone and Germany.

In the evening, from the U.S., weekly oil stocks, which will come out at 2230 CEST.

Among the companies listed on Piazza Affari, no particular events are expected.

By Chiara Bruschi, Alliance News reporter

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