Futures passive after Fed minutes release

(Alliance News) - European marketplaces--according to the IG futures market--are expected to open lower Thursday as fears over U.S. interest rates resurface, with all eyes on the U.S. Treasury secretary's visit to China.

"European markets have fallen every day this week, although yesterday's losses were by far the worst, and look set to continue today. U.S. markets also struggled yesterday, although their losses were much more modest," noted CMC's Michael Hewson.

Meanwhile, Wednesday's minutes from the Federal Reserve's June meeting showed that the central bank is committed to raising interest rates further, despite last month's pause. Fed officials signaled that they intend to resume rate increases believing that further tightening is needed to tame inflation in the world's largest economy.

"Nearly all participants noted that in their economic projections they believe additional increases in the target federal funds rate during 2023 would be appropriate," minutes from the Federal Open Market Committee's June meeting showed.

CMC's Hewson commented, "Some officials wanted to continue with rate increases of 25 basis points, but given the 'uncertainty' about the outlook, it was decided that a pause would be preferable, as long as it was clear that the one-month 'window' provided in July for the hike, as well as further increases, was the main assumption."

"This helps explain the very aggressive guidance with no rate cuts planned by Fed officials through 2024,",Hewson concluded.

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The FTSE Mib, therefore, after closing in the red by 0.6 percent at 28,220.18, posted a bearish reading of 183.00 points.

In Europe, London's FTSE 100 is giving up 40.00 points, Paris' CAC 40 58.50 points, and Frankfurt's DAX 40 is marking a contraction of 92.00 points.

Among the smaller lists last night, the Mid-Cap gave up 0.3 percent to 42,501.73, the Small-Cap lost 0.2 percent to 26,952.79, and Italy Growth finished down 0.1 percent to 9,057.60.

On the highest-capitalization list of Piazza Affari last night, Leonardo took the top spot by leading the meager bullish segment with a plus 1.8 percent after the British government confirmed a GBP870 million, five-year contract to BAE Systems and Leonardo UK - a subsidiary of Leonardo - to upgrade the radar capabilities of the RAF's Typhoon, equipping the fighter jets with one of the most advanced radars in the World, the European Common Radar System Mk2.

Following last year's announcement at the Royal International Air Tattoo of 2022, in which British Defense pledged to invest GBP2.35 billion for various Typhoon upgrades, this is the first contract awarded from that important and complex investment and will see the completion of the development and integration of the ECRS Mk2.

Also doing well was Saipem, which posted a 1.1 percent positive balance to its eighth session on the bullish side.

Prysmian Group -- in the red by 1.0 percent -- announced Wednesday that it had reached an important milestone with SP Transmission PLC and National Grid Electricity Transmission PLC, two of the owners of the electric transmission grid in the United Kingdom.

Enel--which finished 2.0% in the red--reported Wednesday that Enel X Way and Saba Italia Spa, one of the largest operators specializing in the management of public parking lots, have entered into a partnership in Italy to offer electric drivers new charging opportunities with 51 charging infrastructures available in 17 parking lots managed by Saba Italia across the country.

Pirelli gave up 0.6 percent. On Tuesday it signed an agreement to acquire 100 percent of Hevea-Tec, Brazil's largest independent natural rubber processing operator.

The deal will take place for an enterprise value consideration of about EUR21 million, subject to adjustments at closing, which - subject to the fulfillment of certain conditions including the green light from the Antitrust Authority - is expected to take place by the end of 2023. The acquisition will have no impact on the target of about EUR2.35 billion projected for Pirelli's net financial position at the end of 2023.

Inwit -- in the green by 0.9 percent -- reported Tuesday that between June 26 and June 30 it bought 327,671 ordinary shares at an average unit price of EUR11.9231, for a total consideration of EUR3.9 million.

FinecoBank contracted by 2.5 percent and ends at the bottom. Of note, on the stock Tuesday Marshall Wace raised its short position to 1.7 percent from 1.64 percent previously.

On the cadet segment, good buying on Brunello Cucinelli, which moved ahead 2.4 percent, rearing its head after two sessions among the bearish.

It does best of all Saras, which rose 10 percent and ends its fourth session on the bullish side. Saras reported Wednesday that Urion Holdings bought 10.0 million shares in the company, reaching 13.52 percent of the Moratti company's capital. The shares were taken over at an average price of EUR1.1216, for a total value of about EUR11.2 million.

Arnoldo Mondadori Editore - up 0.7 percent - announced Tuesday that AdKaora, the Mondadori group's digital agency specializing in mobile advertising and proximity marketing, is continuing its growth by expanding into international markets and is proceeding with the acquisition of the remaining 70 percent of Adgage, a Madrid-based Spanish company specializing in mobile advertising and in-game advertising, of which it had taken over 30 percent in November 2021.

MFE's A shares closed up 0.4 percent while the B shares were at parity.

On the Small-Cap list, boost on Immsi, which posted a plus 3.8 percent after two sessions closed among the bearish.

Mondo TV - down 0.2 percent - on Tuesday announced that it has signed a new agreement with Educational, an Italian company that for more than four decades under the Ludattica brand has been conducting research and training activities on children's learning strategies based on play, that complements the one already in place since 2020 for the exploitation of licensing and merchandising rights of the property Il Gruffalò.

PLC System Srl - a PLC Group company that closes in the red by 2.1 percent - signed a contract with Suncore 2 Srl, a Peridot Solar Group company, for the turnkey construction of the utility substation serving a high-voltage apartment building, serviced by a large photovoltaic park with 31.7 MWp of total power, located in the Nuoro area.

Among SMEs, Energy ended the day 9.3 percent in the red. The company reported Wednesday that Davide Tinazzi, the company's chief executive officer, viewed preliminary first-half sales figures, which ended at EUR39.0 million compared to EUR53.3 million as of June 30, 2022. Ebitda margin was 20%.

Visibilia closed in the red by 20 percent on the day that Daniela Santanché-who sold her shares last October-reported in the Senate on the allegations against her from a Report news investigation.

Fenix Entertainment closed up 48 percent at EUR0.017. On Tuesday it announced that it had signed an agreement with Galassia Cinema, a newly formed company currently engaged in establishing a vast circuit of cinemas, to date some 200 associated and about 200 more in the process of affiliation, throughout Italy.

In New York on European night, the Dow Jones closed down 0.4 percent, the S&P in the red 0.2 percent, and the Nasdaq gave up 0.2 percent.

Among Asian exchanges, the Nikkei gave up 1.7 percent, the Hang Seng closed is in the red by 2.9 percent, while the Shanghai Composite is contracting 0.5 percent.

Among currencies, the euro changed hands at USD1.0860 against USD1.0875 on Wednesday's European equities close. In contrast, the pound is worth USD1.2714 from USD1.2717 on Wednesday evening.

Among commodities, Brent crude is worth USD76.4 per barrel versus USD76.47 per barrel at Wednesday's close. Gold, meanwhile, trades at USD1,920.12 an ounce from USD1,923.93 an ounce last night.

On Thursday's macroeconomic calendar, the Italian, Spanish, French and Eurozone construction PMI index is due out at 0930 CEST.

At 1030 CEST the UK Construction Purchasing Managers' Index will be released while at 1100 CEST Eurozone May retail sales are expected.

At 1300 CEST, US mortgage applications and unemployment claims will be released.

On the Piazza Affari calendar, no special events are scheduled.

By Maurizio Carta, Alliance News reporter

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