Futures bullish; wait for Fed cuts in 2024

(Alliance News) - Piazza Affari, according to the futures market, is expected to open with bullish trend in the last session of the week. Trading rooms remain faithful to the narrative espousing the Fed's accommodative stance at its December meeting, where it signaled multiple rate cuts in 2024.

The European Central Bank and the Bank of England, on the other hand, have indicated no intention to cut rates anytime soon, while other major central banks are expected to follow the Fed in easing monetary policy.

As a result, the FTSE Mib marks a gain of 58.00 points, after closing down 0.3 percent at 30,331.17 last night.

In Europe, London's FTSE 100 is trading just below par, Paris' CAC 40 is advancing 11.00 points, and Frankfurt's DAX 40 is advancing 27.00 points.

Last night, Mid-Cap lost 0.3 percent to 44,616.55, Small-Cap rose 0.4 percent to 28,321.45, and Italy Growth gained 1.2 percent to 8,251.24.

On the Mib, ERG among the best rose 0.4 percent. The company on Thursday announced that through its subsidiary ERG Eolienne France SAS, it has signed an agreement with QEnergy France SAS, a leading operator in the renewable energy sector in France, to acquire 100% of CEPE Renouvellement Haut Cabardès SAS, a company that owns a 73.2 MW wind and solar portfolio in France.

The portfolio of plants subject to the acquisition consists of two photovoltaic farms, commissioned between June and September 2022, totaling 20.4 MWp of installed capacity, a 28.8 MWp solar project in an advanced stage of construction, and a 24 MW wind farm in the final commissioning stage following a total reconstruction to new.

Terna - in the red by 0.2 percent - reported Thursday that Terna's planned new power link between La Spezia and Arcola has been authorized by the Ministry of Environment and Energy Security.

BPER Banca - in the red by 0.8 percent - reported that it has reached an agreement with the unions that will provide for the exit of 1,000 resources including through recourse to the industry Solidarity Fund.

Conversely, the bank will hire 500 new employees and stabilize 200 fixed-term contracts, "with attention to the territories where the group is present," BPER said.

Also hurt were Banco BPM, Intesa Sanpaolo and Banca Monte dei Paschi di Siena, down between 1.0 percent and 0.5 percent.

Prysmian gave up 0.3% after it announced Wednesday that it had tested the inter-array cable system for the Fécamp offshore wind farm, located in the English Channel, about 24 km off the French coast in Normandy, in the Seine Maritime department.

The Fécamp offshore wind farm consists of 71 wind turbines with a total capacity of nearly 500 MW, capable of generating an amount of clean electricity equal to the energy needs of more than 770,000 people.

On the Mid-Cap, Banca Popolare di Sondrio rose 1.7 percent after it announced Thursday that it had concluded -- together with 12 other participating institutions -- the multi-originator securitization transaction of non-performing loans called "LUZZATTI POP NPLS 2023," with a total gross book value of EUR313 million.

Specifically, the institution sold, with economic effect from January 1, 2023, a portfolio of non-performing loans with a gross value of EUR173.7 million to the securitization vehicle named "Luzzatti POP NPLS 2023 Srl," which, in turn, issued, in relation to Banca Popolare di Sondrio, three tranches of ABS notes totaling EUR57.13 million, or 32.88% of the gross value of the loans sold.

Fincantieri -- in the black by 0.7 percent -- announced Thursday that it had signed a construction loan green for up to EUR415 million with Intesa Sanpaolo Spa and Cassa Depositi e Prestiti Spa.

The proceeds will be used to cover the financial needs associated with the construction of the Mein Schiff Relax, the first of two new two-fuel inTUItion-class cruise ships being built by Fincantieri for TUI Cruises, a joint venture between TUI AG and Royal Carribean Cruises groups.

Acea closed up 0.4 percent, after announcing that its board approved the fininizio and presentation to Roma Capitale of a project financing proposal for the conessione of the management of the capital's public lighting network and service.

On the Small-Cap, Edison -- in the green by 1.2 percent -- on Thursday disclosed that it had signed a long-term power purchase agreement with the FERA Group -- Fabbrica Energie Rinnovabili Alternative -- for the management of energy produced by a wind farm with an installed capacity of 20 MW, in the province of Savona, Liguria.

The five-year agreement calls for Edison to take back all the renewable energy generated, attested by the relevant guarantees of origin, which the group will manage on the market and resell to its customers interested in a renewable supply contract; while FERA retains the operational management and maintenance of the asset.

PLC closed in the green by 1.8 percent after it announced Wednesday that PLC System Srl and Cebat Spa have signed a contract with Metka EGN Italy Srl for the connection works of a plant with a total capacity of approx. 87 MWp in the province of Latina.

The contract provides for the performance of engineering and construction activities for the medium and high voltage connection and the Utility Substation.

Trevifin rises 9.8 percent after extending the 2022-2026 business plan by another year, to 2027.

Targets remain confirmed, which call for an average annual revenue growth of 5 percent over the plan period, a recurring Ebitda margin above 13 percent at the end of the plan from the 12 percent expected this year, and increasing cash generation thanks to the positive contribution of both business divisions, favoring the achievement of the ratio of Net Financial Position to recurring Ebitda at a level below 2 times, as early as the end of 2026.

Among SMEs, Spindox rose 5.5 percent after it announced Thursday that the shareholders' meeting appointed a new board of directors, which will serve for three fiscal years until the approval of the financial statements as of December 31, 2025, and set the number of its members at nine.

The new board of directors is thus composed of Paolo Costa, who was appointed chairman of the board, Mauro Marengo, Massimo Pellei, Alessandro De Florentiis, Rosa Cipriotti, Francesco Berti, Matteo Menin, Dario Trezzi, and Giulia Gestri.

Pozzi Milano closes flat, after it announced Thursday that, through its subsidiary Pozzi Brand Diffusion Srl, of the Pozzi and Castello Pozzi brands, which are the subject of a licensing strategy, it approved the signing of an addendum to the commercial distribution contract between the company and related party Mercati Srl, signed on Jan. 1, 2022.

The contract, which has a two-year term and expires on December 31, 2023, will be tacitly renewed for a period of an additional 12 months from January 1, 2024 until December 31, 2024 for the estimated maximum total amount of EUR1 million, plus VAT.

Ulysses Biomed - in the green by 0.3 percent - announced Thursday that its subsidiary Hyris Limited has signed an agreement with the Defense and Certification Research Center of the Council for Agricultural Research and Analysis of Agricultural Economics for the joint development of innovative methods to enable early detection of biotic stresses on plants.

In New York overnight Europe, the Dow closed up 0.1 percent, the Nasdaq closed just below par, and the S&P 500 closed just above par.

Among Asian exchanges, however, the Shanghai Composite marked a 0.7 percent increase, the Hang Seng marked a 0.2 percent red, while the Nikkei gave up 0.2 percent.

Among currencies, the euro changes hands at USD1.1072 against USD1.1090 recorded at Thursday's European stock close while the pound is worth USD1.2767 from USD1.2759 on Thursday evening.

Brent crude is worth USD77.49 per barrel versus USD78.98 per barrel at Thursday's close. Gold, meanwhile, trades at USD2,073.99 an ounce from USD2,085.15 an ounce on Thursday evening.

Friday's macroeconomic calendar features the consumer price index and producer price index at 0900 CET from Spain. An hour later is the turn of the Spanish current account.

Among the companies listed in Piazza Affari, no particular announcements are expected.

By Maurizio Carta, Alliance News reporter

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