Futures bearish on ECB day

(Alliance News) - On Thursday, European stock markets -- according to the futures market -- are set for a bearish opening as investors prepare for the European Central Bank's monetary policy decision.

It is expected to keep interest rates stable and will attempt to dismiss "accommodative" market assumptions about imminent rate cuts. Investors will also evaluate a number of European economic reports, including Germany's Ifo Business Climate survey and French unemployment claims.

The FTSE Mib, thus, is giving up 167.00 points, following a 0.9 percent green at 30,338.35 last night.

In Europe, London's FTSE 100 is giving up 9.40 points, Paris's CAC 40 is giving up 10.30 points, and Frankfurt's DAX 40 is stepping back 20.20 points.

Last night, Mid-Cap gained 0.5 percent to 45,001.88, Small-Cap rose 0.7 percent to 27,803.13, and Italy Growth closed up 0.2 percent to 8,309.20.

On the Mib last night, Hera rose 3.1% after releasing its new business plan to 2027. In detail, the company expects a positive performance of the group's industrial margins for the year just ended, with EBITDA expected to exceed EUR1.48 billion, EUR185 million more than the EUR1.29 billion in 2022.

The company explains that this result touches three years ahead of the target that had been set by the previous industrial plan for 2026 - EUR1.47 billion -, confirming the strategy undertaken by the group and the timing in seizing some market opportunities that presented themselves in 2023.

Only Banca Monte dei Paschi di Siena did better, up 5.0 percent, while Saipem rounded out the podium, up 3.0 percent.

Down went Telecom Italia, which goes to the bottom in the red by 1.9 percent, on the day Vivendi frontally attacks the Italian Treasury, for the first time, on the Telecom network dossier and does so with a complaint to Dg Comp in Brussels in which it highlights Via XX Settembre's role in rival Open Fiber.

"The French shareholder of Telecom, which holds 24 percent of the shares and is against the sale of NetCo to the U.S. fund KKKR for an amount that could reach EUR22 billion, has already challenged the resolution of the board of directors arguing that it was necessary to go through an extraordinary meeting. A move long announced and therefore also discounted by the market," Alliance News columnist Francesco Bonazzi wrote in an in-depth article.

"The move made in Brussels, on the other hand, is more surprising because it touches on a very delicate aspect of the whole affair and puts Giorgia Meloni's government, already not very popular in Europe for its no to the Mes and tough stance on the new Stability Pact, directly in the crosshairs. All this while the same European antitrust continues to delay the go-ahead for Lufthansa's rescue of Ita Airways, much to the irritation of the Italian Treasury (and some satisfaction of Air France and Ryanair)."

On the cadet segment, Iren -- up 0.1 percent -- announced Tuesday that it had signed two sustainability-linked revolving credit facilities with UniCredit Spa and BPER Banca Spa in the form of "committed" lines for a total amount of EUR200 million and a term of three years.

Salvatore Ferragamo rose 0.3 percent after announcing Monday that it has appointed di Pierre La Tour as Group CFO, effective March 18, 2024.

Fincantieri closed flat at EUR0.50 per share. The company announced Monday that the Windward Offshore consortium has exercised options for the design and construction of two hybrid Commissioning Service Operation Vessels - CSOVs.

Among smallcaps, FILA rose 2.8 percent after announcing Monday that the ordinary shareholders' meeting approved the distribution of an extraordinary dividend of EUR0.58 per share and the appointment of Deloitte&Touche Spa as statutory auditors for the period 2024-2032.

Vianini -- up 0.6 percent -- announced Wednesday that the capital increase resolved on December 11 had been completed with the full subscription of the company's 75.2 million newly issued ordinary shares worth EUR60 million.

AbitareIn gained 2.5 percent after announcing Tuesday that it has appointed a new 8-member board of directors in the persons of Luigi Francesco Gozzini, chairman and CEO; Marco Claudio Grillo, managing director; Eleonora Reni, director; and independent directors Mario Benito Mazzoleni, Giuseppe Vegas, Nicla Picchi, Antonella Lillo and Massimo Massarotto.

Among SMEs, B&C Speakers rose 3.8 percent after reporting Tuesday that it expects revenues of EUR93 million for 2023, based on preliminary data. The figure marks a record for the company and is in line with both B&C Speakers' growth trend and analysts' estimates. In 2022, the company had reported revenues of EUR82.4 million.

On the first day of trading, Kruso Kapital closed in the green by 2.7 percent. Based on the offer price of EUR1.86 per share, Kruso Kapital's capitalization at the start of trading is about EUR45.7 million. The free float is about 15.29 percent of the share capital, counting within it shares owned by Foundations other than the shares contributed in the lock-up agreement or subject to restrictions of the same nature.

In New York last night, the Dow closed 0.3 percent in the red, the Nasdaq rose 0.4 percent, and the S&P 500 gained 0.1 percent.

Among currencies, the euro changed hands at USD1.0887 against USD1.0904 recorded at Wednesday's European stock close, while the pound was worth USD1.2727 from USD1.2748 last night.

Brent crude is worth USD80.31 per barrel versus USD80.40 per barrel at Wednesday's close. Gold, meanwhile, trades at USD2,015.06 an ounce from USD2,013.50.03 an ounce last night.

Thursday's calendar includes in Germany at 1000 CET German business expectations for January and an assessment of the current German situation. At the same time the ifo index on business confidence in Germany is released.

From the Eurozone, at 1445 CET, the European Central Bank's interest rate, deposit rate and ECB marginal lending facility decisions are released.

Overseas, at 1430 CET, building permits, unemployment claims, PCE index of core prices and US GDP are released.

Back in Europe, at 1445 CET, the ECB press conference is expected and at 1645 CET, ECB President Christine Lagarde's speech is expected.

Among companies listed in Piazza Affari, the results of Aeffe, Salvatore Ferragamo and STMicroelectronics are expected.

By Maurizio Carta, Alliance News reporter

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