Stock exchanges in green, Mib above 30,300; ECB awaited

(Alliance News) - On Wednesday, major European stock exchanges close in positive territory, on a day when information on US and Eurozone PMIs, the Bank of Canada's decision on rates and forecasts on the European Central Bank's decision due on Thursday were shared.

Thus, the FTSE Mib closes in the green by 0.9 percent to 30,338.35, the Mid-Cap gains 0.58 percent to 45,001.88, the Small-Cap rises 0.7 percent to 27,803.13 and Italy Growth ends up 0.2 percent to 8,309.20.

In Europe, London's FTSE 100 ends up 0.6 percent, Paris' CAC 40 ends in the green 1.0 percent while Frankfurt's DAX 40 gains 1.6 percent.

"Disappointing January flash PMI data from the Eurozone did not stop European stock indexes from rising, especially as U.S. private sector activity growth reached a seven-month high and positive earnings from Netflix pushed the S&P 500 and Nasdaq 100 to new all-time highs. In addition, crude oil prices continued to advance, but gold prices fell despite the U.S. dollar slipping," commented Axel Rudolph, senior market analyst at IG.

In fact, among the macroeconomic news, service sector activity recorded the largest expansion in seven months, while manufacturing firms continued to record a moderate decline in output, rising to 52.3 in January, marking a notable increase from 50.9 in the previous month and indicating the fastest increase in business activity since June 2023.

As for the manufacturing sector, the index unexpectedly rose to 50.3 in January from 47.9 in December, compared with forecasts of 47.9.

The reading was the highest since October 2022 and indicated improved operating conditions for goods producers.

On the Mib, Hera rose 3.1 percent 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 achieves 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 arose in 2023.

They do better only Banca Monte dei Paschi di Siena, up 5.0%, while Saipem closes the podium, up 3.0%.

Down goes 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 has signed with UniCredit Spa and BPER Banca Spa two sustainability-linked revolving credit facilities in the form of "committed" lines for a total amount of EUR200 million and a term of three years.

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

Fincantieri closes 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 rises 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 gains 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 rises 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, the Dow is in the green 0.3 percent to 38,028.54, the Nasdaq rises 0.9 percent to 15,570.32, and the S&P 500 gains 0.6 percent to 4,894.44.

Among currencies, the euro changes hands at USD1.0904 against USD1.0827 recorded at Tuesday's European stock close, while the pound is worth USD1.2748 from USD1.2658 last night.

Brent crude is worth USD80.40 per barrel versus USD79.74 per barrel at Tuesday's close. Gold, meanwhile, trades at USD2,013.50.03 an ounce from USD2,026.01 an ounce last night.

Thursday's calendar calls for the French economic state survey data at 0845 CET.

At 0900 CET Spain's annual producer price index is scheduled.

Also in Europe, Germany's German business expectations for January and assessment of the current German situation are released at 1000 CET. 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 decisions, deposit rate and ECB's marginal lending operations 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 Claudia Cavaliere, Alliance News reporter

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