Stock markets in green after Eurozone macro; up on Brent crude

(Alliance News) - On Friday, major European stock markets trade up in mid-day gains after the release of PMI data for the manufacturing sector in the Eurozone and some of its most important markets.

Thus, the FTSE Mib is up 0.3 percent to 28,926.99, the Mid-Cap is up 0.1 percent to 42,483.04, the Small-Cap gives up 0.2 percent to 27,314.33, and Italy Growth is in fractional green at 8,884.81.

In Europe, London's FTSE 100 rises 0.5 percent to 7,477.58, Paris' CAC 40 is up 0.3 percent to 7,341.07 and Frankfurt's DAX 40 is up 0.2 percent to 15,972.79.

In macroeconomic news, the Eurozone's manufacturing sector remained under severe pressure in the middle of the third quarter, with a slump in new orders and the rapid depletion of the backlog of work straining production lines across the single currency area.

With a reading of 43.5 in August, the headline index rose from July's 38-month low of 42.7, while still remaining indicative of another sharp deterioration in the health of the eurozone's manufacturing economy.

On the blue chip list, oils take off thanks to the rise in Brent crude, with Eni doing best of all and rising 1.8 percent, Tenaris is up 1.4 percent, and Saipem is up 1.0 percent.

Saipem on Thursday had announced that it had successfully completed the placement of EUR500 million of senior unsecured guaranteed equity-linked bonds maturing in 2029.

In Italy, manufacturing contracted in August, although the pace of decline was slower than in the previous month. In fact, the manufacturing PMI rose to 45.4 points in August from 44.5 points in July, remaining below the 50.0 level that separates contraction from expansion in sector activity.

In contrast, industry producer prices fell 0.1 percent on a monthly basis in July after falling 0.3 percent in June. On a year-over-year basis, July's 10 percent drop followed June's 5.5 percent decline.

Also doing well in the top 5 are Telecom Italia, up 1.7 percent, and Leonardo, in the green by 1.1 percent.

Intesa Sanpaolo -- in the green by 0.2% -- on Thursday announced a cash tender offer to repurchase all or part of its perpetual "EUR750,000,000 Additional Tier 1 Notes" with a total outstanding nominal amount of EUR750 million and the launch of a new issue of a perpetual Additional Tier 1 fixed-rate reset bond with a nominal amount of not less than EUR750 million.

At the tail end is Recordati, which gives up 1.2 percent, and Ferrari, down 0.8 percent trailing the Agnelli Galaxy, with Stellantis down 0.3 percent, Iveco in the red 0.2 percent and CNH Industrial in the fractional red.

On the Mid-Cap, Juventus is up 0.1 percent. The company announced that it has reached an agreement with FC Union Berlin for the outright free transfer of the rights to the sports performance of football player Leonardo Bonucci.

The transaction generates a negative economic impact on the 2022-2023 fiscal year of EUR5.6 million.

Webuild gains 0.2 percent. The stock rose after Snowy Hydro, developer of the Snowy 2.0 project in Australia - Australia's largest hydropower project, 100% owned by Webuild after its acquisition of Clough - announced Thursday morning that it was revising the contract.

Fincantieri rises 0.8 percent after announcing that it completed the parallel modernization of two cruise ships for Crystal - A&K Travel Group - delivering Crystal Symphony in recent days.

The contract was finalized in December 2022 and, after an initial phase dedicated to engineering development, the work lasted for about five months significantly raising the level of services and accommodations on board.

Iren is flat at EUR1.91 per share. The board of directors on Wednesday co-opted Paolo Emilio Signorini and appointed him as the new chief executive officer and general manager, following the resignation submitted by Gianni Vittorio Armani on June 12.

The appointment follows the formal indication made by the union committee of Iren's public shareholders composed of Marco Bucci, mayor of Genoa; Stefano Lo Russo, mayor of Turin; and Luca Vecchi, mayor of Reggio Emilia.

It does well Saras, which rises 0.9 percent and follows the bullish trend in oils already seen on the Mib, despite Marshall Wace cutting its short position on the stock to 1.61 percent from 1.82 percent.

On the Small-Cap, FNM - not yet affected by trading - and CDP Venture Capital Sgr signed an agreement to develop innovative startups and SMEs through the entry of the integrated group for sustainable mobility in Lombardy into the Corporate Partners I Fund, the multi-compartment fund that involves major industrial and financial players in order to stimulate the growth of the innovation ecosystem in Italy in the strategic sectors of energy, manufacturing, services and infrastructure.

Aquafil gains 0.2 percent the day after it reported that the first half of the year closed with a loss of EUR4.1 million from a profit of EUR17.7 million recorded in the same period of the previous year and a decline of 123 percent.

As of June 30, revenues stood at EUR311.1 million, down 11 percent from EUR351.0 million in 2022. Ebitda was worth EUR31.3 million from EUR51.5 million and down 39%. Ebit was EUR4.1 million from a negative EUR3.9 million as of June 30, 2022.

KME Group rises 0.1 percent. The company, with reference to the three voluntary total takeover bids involving KME ordinary shares, KME savings shares, and "KME Group Spa 2021 - 2024 Warrants," respectively, announced on Wednesday evening that Germany's Federal Ministry of Economy and Energy has issued the authorization measure under the applicable local regulations on foreign investment control, i.e., golden power.

Among SMEs, eVISO rises 1.7 percent, after reporting Thursday that it closed the year ended June 30 with revenues up to EUR225 million from EUR208 million a year earlier.

Circle gives up 2.7 percent, after announcing Thursday that it has signed a major new contract with a leading European intermodal and terminal operator. The value of the order is over EUR200,000 and the duration of the contract is 12 months.

Maps - up 1.7 percent - on Wednesday announced that it had concluded a supplementary agreement for the early acquisition from minority shareholder MMW Srl of the remaining 30 percent stake in Informatica e Telecomunicazioni Srl and the simultaneous closing of the entire transaction. The early closing thus provides for a total amount of EUR2.1 million.

In Asia, the Nikkei gave up 0.3 percent to 32,710.62, the Hang Seng not trading due to holidays, while the Shanghai Composite gained 0.4 percent to 3,133.25.

In New York on Thursday, the Dow Jones closed down 0.5 percent to 34,721.91, the S&P finished down 0.2 percent to 4,507.66, while the Nasdaq rallied 0.1 percent to 14,034.97.

Among currencies, the euro changed hands at USD1.0850 against USD1.0848 on Thursday in closing European equities while the pound was worth USD1.2683 from USD1.2659 on Thursday evening.

Among commodities, Brent crude is worth USD87.58 per barrel versus USD86.76 per barrel at Thursday's close. Gold, meanwhile, trades at USD1,970.35 an ounce from USD1,942.84 an ounce on Thursday evening.

Friday's economic calendar features U.S. employment data in the afternoon, with private sector payrolls data coming in at 1430 CEST among the most anticipated of the day.

By Claudia Cavaliere, Alliance News reporter

Comments and questions to [e-mail]

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