Stock exchanges down after Fed; ECB awaited

(Alliance News) - Piazza Affari -- like other Europeans -- marks a downward path Thursday according to IG futures, in the wake of an interest rate decision by the U.S. Federal Reserve and on the day of the one the European Central Bank will make later in the day.

Eccles Building on Wednesday evening kept rates unchanged, although it left the door open for further interest rate hikes at subsequent meetings, pausing the bullish cycle after 10 consecutive meetings closed with a rise in the cost of money.

The U.S. central bank left the federal funds rate range of 5.00 percent to 5.25 percent unchanged.

Speaking to reporters after the decision, Fed Chairman Jerome Powell said that almost all committee participants consider further increases this year "appropriate."

The FTSE Mib, therefore, marks a decline of 125.00 points, after closing up 0.9 percent at 27,809.09 last night.

In Europe, London's FTSE 100 is giving up 27.80 points, Paris' CAC 40 is down 33.30 points, and Frankfurt's DAX 40 is giving up 67.00 points.

The Mid-Cap Wednesday finished flat at 43,972.36, the Small-Cap rose 0.3 percent to 27,614.81, and Italy Growth closed flat at 9,137.66.

On the Mib last night, Telecom Italia closed in the lead with a 4.5 percent rise after sources close to the network dossier reported that KKR might join forces with Cassa Depositi e Prestiti to take over the former monopolist's coveted asset. Instead, Macquarie would defect, with the Australian fund intent on taking over Open Fiber's black areas, thus giving the go-ahead - and the necessary funds - for CDP to appear in TIM's court along with the U.S. fund. In addition, this would overcome both antitrust and political obstacles, with the government preferring that the network not end up completely in foreign hands.

DiaSorin gained 0.4 percent after reporting the launch of the new Liaison Brahms MR-proADM immuno-diagnostic test in all countries that accept CE marking.

The test enables improved patient management by helping to assess the degree of severity of various diseases and associated risk.

ERG is up 0.2 percent after announcing that it has joined the Nasdaq Sustainable Bond Network, a platform dedicated to sustainable finance on the New York electronic exchange that brings together investors, issuers and investment banks.

Banks then did well, with UniCredit and Monte dei Paschi leading the way, thanks to respective rises of 3.3 percent and 2.4 percent.

At the bottom, Leonardo and Saipem closed, both down 1.8 percent, among the few bearish performers in Piazza Affari's highest-capitalization basket.

On the Mid-Cap, OVS lost 7.6 percent after approving results for the first quarter of the year, February to April 2023, reporting net sales up to EUR336.5 million from EUR299.9 million in the same period of 2022.

Ebitda is EUR27.5 million from EUR20.1 million in the first quarter of 2022. Ebit was EUR11.7 million from EUR5.7 million at the end of April 2022. Pre-tax income is EUR7.7 million from EUR700,000 in the first quarter of 2022.

After rallying in the past two days, former Mediaset's stock brakes on the stock market. But speculation about a possible reorganization of the TV stations founded by Silvio Berlusconi is not diminished. Any scenario, however, must reckon with the government's Golden Power, whose regulations can also apply to the communications sector and even to groups with headquarters abroad but with Italian subsidiaries, as is the case with MFE.

On the day of the former premier's funeral, MFE's A shares lost 2.8 percent while B shares fell 2.5 percent.

Credito Emiliano gained 1.6 percent after Credemvita's board of directors decided on a EUR100 million capital increase that will be fully subscribed by Credito Emiliano, which wholly controls the company, with a view to supporting the company's development strategy and maintaining high levels of solidity.

Among small-cap companies, Fiera Milano closed up 3.3 percent after announcing that Andrea Maldi has resigned as the company's chief financial officer and manager in charge of financial reporting.

Maldi, who consensually terminated his contract with the company, is due EUR400,000 in severance pay, plus EUR50,000 linked to the MBO 2023 plan. He is also the beneficiary of 38,750 Fiera Milano shares falling under the 2021-2022 performance share plan. Replacing him in both roles will be Massimo De Tullio, former Group Planning & Control Director at Fiera Milano since 2018.

d'Amico International Shipping rose 1.1 percent. Shareholders approved the amalgamation of the company's shares in the ratio of one new share for every ten existing shares. Following the amalgamation, the company's share capital will be USD62.1 million and divided into 124.1 million shares with no par value.

Share regrouping also for Netweek, which closed at a tie. As a result of the regrouping, the total number of Netweek ordinary shares will be reduced from 473.5 million ordinary shares to 47.4 million ordinary shares, with no change in Netweek's share capital, including 14.2 million ordinary shares admitted to trading on Euronext Milan and 33.1 million ordinary shares not admitted to trading.

Among the SMEs listed on the Milan Stock Exchange, Ilpra gained 2.9 percent after deciding that, in agreement with the shareholders of the Turkish company Ponapack, the deal to acquire 30 percent of its share capital will not be executed at closing.

The transaction envisaged the purchase at closing by Ilpra, for a total consideration of about EUR1 million, of category B shares, which, by virtue of the prerogatives provided for in the target's bylaws, would have guaranteed 51 percent voting rights.

Due to the problematic period Turkey is experiencing, both economically and socially, following the earthquake that struck the country last February, Ilpra and Ponapack's shareholders decided by mutual agreement not to proceed with the closing of the share transaction.

Nocivelli ABP rose 0.5 percent after it won, in a temporary business grouping with Pavoni, four lots of a tender having as its object the awarding of the execution of construction and plant engineering works for the construction or adaptation of facilities to be used as Community Hospitals and Community Homes in the provinces of Brescia, Lecco and Mantua.

The amount of Works of a plant engineering nature pertaining to Nocivelli ABP is approximately EUR21.8 million. These are works awarded on the basis of the NRRP whose works will be carried out over the next three years.

In New York, the Dow gave up 0.7 percent, the Nasdaq rose 0.4 percent, and the S&P 500 gained 0.1 percent.

Among Asian exchanges, the Nikkei closed just below par, the Hang Seng is picking up 1.3 percent, and the Shanghai Composite is showing a 0.5 percent gain.

Among currencies, the euro changed hands at USD1.0818 versus USD1.0849 at yesterday's European equity close. In contrast, the pound is worth USD1.2652 from USD1.2689 on Wednesday evening.

Among commodities, Brent crude is worth USD73.77 per barrel versus USD74.18 per barrel last night. Gold, on the other hand, trades at USD1,936.00 an ounce from USD1,956.91 an ounce last night.

Thursday's macroeconomic calendar, in addition to the ECB decision at 1415 CEST and the press conference of the president, Christine Lagarde, half an hour later, includes the release of the Eurozone trade balance at 1100 CEST, as well as the Eurogroup meeting, scheduled for 1200 CEST.

From the US, room for jobless claims at 1430 CEST, coming at the same time as retail sales and three-quarters of an hour before industrial production data.

Among publicly traded companies, no special events are expected on Thursday.

By Maurizio Carta, Alliance News senior reporter

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