Bullish stock markets; speculation of FED pause strengthens

(Alliance News) - European stock markets marked an upward path Friday, buoyed by expectations that the Federal Reserve will refrain from raising interest rates at its next meeting.

U.S. Fed official Patrick Harker joined others in advocating a pause in the tightening cycle, suggesting it would be time to assess the situation. In addition, optimism prevails among investors that the United States has avoided default after the Senate passed legislation to suspend the debt ceiling. All eyes will now turn to the U.S. labor market report due later today.

In Tokyo on Friday, the Nikkei 225 index rose 1.1 percent. The Shanghai Composite closed in the green by 0.8 percent, while Hong Kong's Hang Seng Index is picking up 3.9 percent.

Thus, the FTSE Mib advanced 0.4 percent to 26,686.39.

In Europe, London's FTSE 100 rises 0.5 percent, Paris' CAC 40 advances with 0.7 percent, while Frankfurt's DAX 40 marks a 0.7 percent gain.

The Mid-Cap advances with 0.4 percent to 42,329.89, the Small-Cap rises 0.2 percent to 27,332.34, and Italy Growth marks a 0.3 percent gain to 9,116.50.

On the highest-capitalization list in Piazza Affari, Saipem is off to a good start, posting a plus 2.5 percent with price at EUR1.23 per share, on the heels of eve's gain of 1.9 percent.

Moncler, on the other hand, rises 1.8 percent to EUR63.02. As stated in a ProiezioniDiBorsa focus Thursday, regarding Moncler stock, "A buy signal has been triggered on this stock. A new bullish phase may be coming," the analyst team writes. "For this to happen, in fact, it is crucial that resistance in the EUR64.41 area is broken to the upside," the analysis on the stock concludes.

Italgas - up 0.4 percent - on Thursday successfully concluded the launch of a new bond issue maturing in June 2032, with a fixed rate and in the amount of EUR500 million, annual coupon of 4.125 percent, in implementation of the EMTN Program launched in 2016 and renewed by a board resolution of September 15, 2022.

On a negative note, UniCredit closes the list by giving up 0.8 percent, while CNH Industrial gives up 0.3 percent.

On the cadet segment, good buys on Autogrill, which is marking a plus 1.6 percent rally after two sessions in the red.

Maire Tecnimont - up 0.4 percent - announced Thursday that its subsidiary KT-Kinetics Technology, part of the Integrated E&C Solutions business unit, has been awarded preliminary engineering work for a new green fertilizer complex in North America by a group of private investors.

OVS--down 1.1 percent--reported Thursday that it had purchased 171,961 shares of its own common stock between May 25 and May 31. The shares were taken over at an average price per share of EUR2.5061, for a total value of about EUR431,000.

SOL, on the other hand, gives up 1.4 percent to EUR25.45 per share. It should be noted that the stock, since the beginning of 2023, marks a green that goes over 45 percent.

On the SmallCap, Gequity advances 7.1 percent to EUR0.0148, on the heels of eve's double-digit gain.

KME Group - up 0.4 percent - on Thursday informed that following the fulfillment of the conditions precedent stipulated in the agreement, KME SE, its main subsidiary, has executed the agreement signed with Golden Dragon Precise Copper Tube Group Inc regarding the sale of its 50 percent stake in the KMD Holdings Limited joint venture and the purchase of 100 percent of the shares in KMD Connectors Stolberg GmbH. The execution of the transaction, as stipulated in the agreement, resulted in the net proceeds of approximately USD53 million, of which approximately USD43 million related to the purchase and sale of the shareholdings and the payment of commercial positions, as well as USD10 million for the repayment of outstanding loans.

Gas Plus, on the other hand, gives up 3.2 percent to EUR2.39 per share, after a 1.7 percent gain on the viglia.

Among SMEs, Italia Independent steps back 7.3% to EUR0.7650 per share.

Sciuker Frames -- ahead 7.1 percent -- announced Thursday evening that it had signed binding contracts to purchase the entire share capital of D&V Serramenti Srl and Diquigiovanni Srl.

Tecma solutions, on the other hand, rises 2.6 percent, priced at EUR3.98 per share.

In New York on European night, the Dow closed up 0.5 percent, the Nasdaq up 1.3 percent, and the S&P 500 gained 1 percent.

Among currencies, the euro changed hands at USD1.0762 against USD1.0731 on Thursday's European stock close. In contrast, the pound is worth USD1.2562 from USD1.2522 last night.

Among commodities, Brent crude is worth USD75.30 per barrel versus USD72.68 per barrel last night. Gold, on the other hand, trades at USD1,976.93 an ounce from USD1,974.36 an ounce Wednesday night.

On Friday's macroeconomic calendar, from the US, focus on private sector payrolls and the unemployment rate, due at 1430 CEST, before Baker Hughes data on the number of drilling rigs, due at 1900 CEST.

Among the companies in the Square, no results are expected to come in.

By Maurizio Carta, Alliance News senior reporter

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