Mib green above 29,700; boost on oil segment

(Alliance News) - On Thursday, the Mib closed higher in the 29,700 area, in line with other major European exchanges, after new inflation data for the Eurozone and Italy showed a larger-than-expected drop in inflation in November.

The Federal Reserve's preferred measure of inflation slowed again in October, showing itself as the latest sign that price increases are slowing significantly. This could further reinforce speculation that the U.S. central bank will cut interest rates several times next year.

The price index for personal consumption expenditures-the core PCE-increased 3.5 percent year-on-year in October, down from 3.7 percent in September and in line with expectations. On a monthly basis, it rose 0.2 percent, down from 0.3 percent in September and in line with market expectations.

Major oil-producing nations led by Riyadh and Moscow are moving toward an agreement on further production cuts to support volatile prices, a source close to the negotiations told AFP.

Ministers from the 13-member Organization of Petroleum Exporting Countries, led by Saudi Arabia, and its 10 partners, led by Russia, have agreed to "further cut production from 600,000 to one million barrels a day," the source said.

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Thus, the FTSE Mib is in the green 0.5 percent to 29,737.38, the Mid-Cap advanced 0.2 percent to 41,966.14, the Small-Cap contracted 0.5 percent to 26,035.81 while Italy Growth rose 0.1 percent to 7,907.75.

In Europe, Paris' CAC 40 closed in the green by 0.6 percent, London's FTSE 100 advanced 0.4 percent while Frankfurt's DAX 40 closed up 0.3 percent.

Good session for oil stocks. Tenaris, in the highs, took home 2.7 percent, after a 0.8 percent loss on the eve of trading.

Saipem announced Wednesday that it had been awarded two offshore contracts -- one in Guyana and the other in Brazil -- worth about USD1.9 billion. Shares closed up 3.4 percent.

Purchases were also made on parent company Eni, which closed the session taking home 0.44 percent to EUR15.16. On the stock it is reported that Jefferies cut its target price to EUR18.00 from EUR19.00 with a 'buy' recommendation.

Prysmian - in the green by 0.2 percent - announced Thursday that it has been awarded a contract worth about EUR850 million awarded by Eastern Green Link 1 Limited, a joint venture between UK transmission network owners SP Transmission PLC and National Grid Electricity Transmission PLC, to supply cable systems for a major project to develop the national grid

national grid between Scotland and England.

Leonardo, on the other hand, gave up 0.4 percent. Of note, the company announced Tuesday that it has received a new order from Omni Helicopters International - OHI - for three units, comprising two AW189s, powered by General Electric engines, and one AW189, powered by Safran engines.

Also on a negative note, a minority list trend, was Ferrari, which left 1.4 percent on the parterre, marking its third session in a row with a bearish candle.

Sales also prevailed on UniCredit, which closed down 1.3% at EUR24.98. On the stock it is mentioned that JPMorgan raised the target price to EUR39.00 from EUR34.00 with 'overweight' recommendation.

On the Mid-Cap, Seco rose 1.6 percent after announcing Thursday that it has signed a new business deal with a leading global manufacturer of fully automatic coffee machines designed for both home and professional use. The company expects the design win to generate revenues in excess of EUR50 million in the two-year period 2024-2025.

The buy side also prevails well on Ariston Holding, which took home 2.0 percent, rearing its head again after a three-session downtrend.

Lottomatica Group -- in the green by 1.1 percent -- announced that it has completed the pricing of a total amount of EUR500 million of its senior secured floating-rate bonds maturing in 2030 at an issue price of 99.5 percent, with a coupon equal to the sum of the three-month Euribor rate -- subject to a floor of 0 percent -- plus 4.00 percent per annum. The offering is scheduled to close on December 14.

Saras, on the other hand, took home 0.9 percent with new price at EUR1.48 per share.

Maire Tecnimont - in the red by 1.5 percent - on Tuesday announced that it had made full early redemption of its bond to 2024 with the consequent delisting of the related bonds from the markets organized and managed by Borsa Italiana and the Luxembourg Stock Exchange. The redemption price of EUR165.3 million corresponds to 100 percent of the bond's nominal amount, together with interest accrued since the last coupon payment date.

Salcef, on the other hand, left 3.3 percent on the parterre, after a 1.6 percent decline on the eve of the meeting.

On the Small-Cap, SIT took home 5.3 percent, with new price at EUR2.58. High trading volume was recorded on the stock with more than 44,000 pieces changed hands compared to a three-month daily average of about 11,600.

Gabetti, on the other hand, marked a rise of 8.0 percent, with new price at EUR0.79, in its third bullish session.

Mondo TV - in the red by 1.1 percent - announced Wednesday the airing starting in December on Rai Yoyo of the first episodes of the new animated series Grisù, the company's "flagship product at the industrial level, currently nearing completion."

KME Group -- in the red by 0.1 percent -- announced Tuesday that its subsidiary KME has finalized the closing of the agreement signed on November 9 with the pool of lending institutions with an increase in the amount of the lines by an additional EUR50 million and thus for a total amount up to EUR460 million. At the same time, the closing of the outstanding factoring lines for EUR376.5 million was also completed.

Netweek, on the other hand, gave up 9.4 percent, with new price at EUR0.1395, after 2.7 percent green on the eve.

Among SMEs, Finanza.tech took home a gain of more than 11 percent, following up on Wednesday evening's gain of 2.3 percent.

H-Farm -- down 1.9 percent -- reported Thursday that it closed the year ended Aug. 31 with a loss of EUR8.9 million, from a profit of EUR17.7 million in the previous year. For the full year, production value stood at EUR36.1 million, down from EUR45.2 million in 2022.

Destination Italia -- down 5.9 percent -- reported Tuesday that the group exceeded EUR6.5 million in terms of its order book referring to tourism bookings of departures that will take place in the year 2024, marking an increase of more than 70 percent compared to the same period in the year 2022.

Digital Magics, on the other hand, left 3.9 percent on the parterre, after 1.3 percent green on the eve.

In New York, the Dow Jones is advancing 0.9 percent, the S&P is down 0.1 percent, and the Nasdaq closed 0.7 percent in the red.

Among currencies, the euro changes hands at USD1.0905 against USD1.0965 recorded in Wednesday's European stock close while the pound is worth USD1.2642 from USD1.2674 on Wednesday evening.

Brent crude is worth USD80.83 per barrel versus USD82.38 per barrel at Wednesday's close. Gold, meanwhile, trades at USD2,038.51 an ounce from USD2,041.00 an ounce on Wednesday evening.

Friday's macroeconomic calendar opens at 0245 CET, when the Caixin manufacturing PMI will come in from China, at 0800 CET it will be the turn of UK house prices, and at 0945 CET the Italian manufacturing PMI, followed by France's, Germnia's, and concluding at 1000 CET with the Eurozone's.

At 1000 CET, the GDP figure from Italy will be coming in, followed at 1030 CET by the UK manufacturing PMI. At 1230 CET, a speech by ECB President Christine Lagarde is scheduled.

In the US, at 1545 CET, the manufacturing PMI data will be released, while at 1700 CET Federal Reserve Number One Powell will speak. At 1900 CET, the Baker Hughes impants report will be released. At 2130 CET, as usual on Friday, there will be the release of the COT Report.

Among the companies, no special announcements are expected.

By Maurizio Carta, Alliance News reporter

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