Futures up on ECB day

(Alliance News) - Piazza Affari is projected to open higher on Thursday morning, along with other European markets, on European Central Bank day and in the aftermath of the Federal Reserve's announcement that it will go ahead with a 25 basis point increase in its benchmark rates as planned, bringing them to their highest level in 20 years.

In the press conference that followed, Chairman Powell reiterated his comments from June that further rate hikes will depend on incoming data, and that there is "still a long way to go" to bring inflation to 2 percent.

This is the comment of Michael Hewson, Chief Market Analyst at CMC Markets: "If the Fed is nearing the end of its rate hike cycle, which seems increasingly likely despite Powell's determination to keep markets on their toes, the pressure on the ECB to be more aggressive in its battle against inflation also seems to be abating. In recent weeks we have already seen a sharp rise in the euro against the US dollar, which is a deflationary factor and will help. In addition, factory prices in Germany and Italy have been in free fall for months now, so while the core CPI has remained sticky and close to all-time highs of 5.5 percent, it is important to remember that the ECB has already pushed rates from 2 percent to 4 percent this year."

The FTSE Mib, according to IG futures, is expected to open up 207.5 points or 0.7 percent after closing up 0.1 percent at 28,980.45.

In Europe, London's FTSE 100 is expected to be up 18.7 points or 0.2 percent, the CAC 40 is expected to open up 48.7 points or 0.7 percent, and Frankfurt's DAX 40 is given in the green by 55 points or 0.3 percent.

Among the smaller lists in Piazza Affari last night, the Mid-Cap fell 0.3 percent to 42,086.63, the Small-Cap fell 0.2 percent to 26,782.79, and Italy Growth lost 0.1 percent to 9,067.82.

On the highest-capitalization list in Piazza Affari on Wednesday, Campari closed down 3.1 percent after reporting that it ended the first half of the year with a net profit of EUR217.6 million, up from EUR199.5 million in the same period a year earlier. Adjusted net income was EUR234.6 million, up from EUR220.6 million.

Stellantis rose 2.7 percent after announcing Wednesday that it posted a net profit of EUR10.92 billion in the first half of the year, up 37 percent from the first half of 2022, when it was EUR7.96 billion.

Net sales for the period amounted to EUR98.37 billion, up 12 percent from EUR88.00 billion in the same period of 2022. Adjusted operating income is EUR14.13 billion, up 11 percent from the first half of 2022 when it was EUR12.72 billion.

Hera gained 1.2 percent. As of June 30, net income rose to EUR208.0 million, up 3.1% from EUR201.7 million in H1 2022, with a tax rate of 27%.

In the first half of the year, revenues amounted to EUR8.3 billion compared to EUR8.9 billion as of June 30, 2022, mainly due to lower energy commodity prices and lower gas sales volumes related to the mild weather in the first part of the year.

UniCredit's board of directors -- up 0.3 percent -- approved the consolidated half-yearly report as of June 30, 2023, with the first half ending net income at a record level of EUR4.4 billion, an increase of 91 percent over the same half of last year. Excluding integration costs recorded in the second quarter, net accounting profit was EUR4.5 billion, recording the best first half year ever.

Net revenues were EUR5.9 billion in the second quarter, up 24 percent year-on-year. As for the capital position, UniCredit shows a CET 1 ratio at 16.64 percent, including EUR1.5 billion in dividends accrued in the first half of the year.

UniCredit's accounts pushed up the entire banking sector, with BPER, MPS, and BPM leading the bullish side with gains between 1.1 percent and 3.9 percent.

On the Mid-Cap, Acea lost 1.8 percent after seeing adjusted net income rise during the first half of the year, a period in which capital expenditures increased and revenues fell slightly year-on-year, as disclosed Tuesday.

The company's adjusted net profit -- post minority interests -- rose 6 percent to EUR144 million from EUR138 million in the same period a year earlier while the unadjusted figure fell 22 percent to EUR142 million from EUR183 million.

ENAV gained 0.7 percent after it, through its subsidiary IDS AirNav, a leading international company in aviation information management systems, signed a contract with Taiwan's air navigation services provider ANWS Air Navigation and Weather Services.

The five-year contract has a total value of EUR5 million.

Among lower-capitalization companies, Mittel finished up 1.4 percent after making it known that it plans to continue diversifying its investments in Italian companies of excellence by entering the sector of production and distribution of PVC windows and doors with high-quality technical performance through the acquisition of a stake in the company Gruppo Finestre.

The acquisition transaction involved the purchase, through its own means, of 100% of gruppo Finestre for a price of EUR13.2 million by the vehicle Italian Windows Group, established by the Mittel group as the holding company of the new window and door investment sector.

Fiera Milano rose 2.6 percent. The company reported a net profit of EUR25.7 million from EUR5.3 million in the same period last year.

In the first half, consolidated revenues amounted to EUR132.2 million from EUR116.2 million as of June 30, 2022. Consolidated Ebitda amounted to EUR41.6 million from EUR39.5 million last June. Ebit for the six-month period amounted to EUR16.2 million compared to EUR15.8 million in 2022.

Among SMEs on the Italian stock exchange, ErreDue -- up 1.2 percent -- reviewed on Wednesday some unaudited preliminary management data for June 30, showing growth in sales and service revenues of about EUR7.8 million, up 45 percent from the same period in 2022 when they were EUR5.4 million.

4AIM Sicaf closed down 0.5 percent after it announced Wednesday that it has mutually agreed to terminate its relationship with Davide Mantegazza, the company's chief financial officer and investor relator, for personal reasons.

The company informs that activities to select a new CFO were promptly initiated and the CEO, Giovanni Natali, has taken over the role of investor relator on an interim basis.

Sciuker Frames lost 0.3 percent after initiating preparatory activities functional to the completion of the acquisitions of the entire share capital of Diquigiovanni, through deWol Contract, a wholly owned subsidiary of Sciuker Frames, and the entire share capital of D&V Serramenti, through deWol Retail, also a wholly owned subsidiary of Sciuker Frames.

In New York on the European night, the Dow closed in the green by 0.2 percent at 35,520.12, the Nasdaq in the red by 0.1 percent at 14,127.28, and the S&P 500 finished just below par at 4,566.75.

In Asia, the Nikkei closed up 0.7 percent at 32,891.16, the Shanghai Composite in the red by 0.2 percent and the Hang Seng finished in the green by 1.0 percent at 19,556.55.

Among currencies, the euro changed hands at USD1.1093 against USD1.1067 on Wednesday in closing European equities while the pound was worth USD1.2953 from USD1.2924 on Wednesday evening.

Among commodities, Brent crude is worth USD83.55 per barrel versus USD83.19 per barrel at Wednesday's close. Gold, meanwhile, trades at USD1,974.60 an ounce from USD1,964.65 an ounce on Wednesday evening.

Thursday's macroeconomic calendar features Spain's unemployment rate at 0900 CEST and, at 1000 CEST, from Italian household and business confidence. Also in Italy, two auctions of five- and 10-year BTPs will be held at 1110 CEST.

The most anticipated moment of the day is definitely the ECB's announcement on rates, scheduled at 1415 CEST, followed by the lecture by the president, Christine Lagarde, half an hour later.

From the US, will come data on Gross Domestic Product, goods orders and jobless claims, all at 1430 CEST, and the Fed's balance sheet, at 2230 CEST. In the afternoon, at 1730 CEST, four- and eight-week T-Notes will be auctioned while seven-year T-Notes will be offered at 1900 CEST.

Among companies in Piazza Affari, eyes will be on the results of Amplifon, Azimut Holding, Banca Generali, Brembo, DiaSorin, Eni, Lottomatica Group, Maire Tecnimont, Prysmian, Snam, STMicroelectronics, Terna and Webuild, among others.

By Chiara Bruschi, Alliance News reporter

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