Futures up slightly after Fed minutes

(Alliance News) - Piazza Affari is expected to rise slightly ahead of Thursday's start of trading, a day marked by the services PMIs of the world's major economies and the Fed minutes released last night.

Federal Reserve officials concluded that interest rate cuts are likely in 2024, although they considered it appropriate to maintain a tightening stance "for some time," according to the minutes of the December meeting.

During the meeting, the Federal Open Market Committee decided to keep the benchmark rate stable in a range between 5.25 percent and 5.5 percent. Members indicated they expect cuts of three-quarters of a percentage point by the end of 2024.

"In discussing the policy outlook, participants felt that the official rate was likely to be at or near its peak for this tightening cycle, although they noted that the actual policy path will depend on how the economy evolves," the minutes read.

The FTSE Mib is given up 80.0 points or 0.3 percent after closing down 1.4 percent at 30,100.84 Wednesday.

In Europe, London's FTSE 100 is expected up 13.3 points or 0.2 percent, Paris' CAC 40 is shown up 19.8 points or 0.3 percent and Frankfurt's DAX 40 is expected up 34.6 points or 0.2 percent.

In Milan last night, the Mid-Cap lost 2.1 percent to 43,426.59, the Small-Cap fell 1.7 percent to 27,819.94, and Italy Growth finished 0.8 percent in the red to 8,276.46.

On the Mib, where few stocks were saved, Leonardo rose 1.4 percent and Banca Monte dei Paschi di Siena 1.6 percent, while Brunello Cucinelli was at the bottom, giving up 3.6 percent.

DiaSorin, down 3.5 percent, and Moncler, which left the same percentage on the parterre, also did poorly.

Just outside the podium of decliners were STMicroelectronics, down 3.5 percent, and Stellantis, down 3.2 percent.

The announcement effect of the Italian auto incentives, which will not arrive until the end of February, is likely to dampen sales at this early part of the year. A problem especially for Stellantis, which is the leader in low-emission cars.

On Tuesday evening, new car sales figures were released for December in France, where registrations were up 14.5 percent from a year earlier. For Stellantis, December was a bad month with a 7.6 percent drop, and market share fell from 23.9 percent to 19.3 percent in a year.

For days, there has been a lot of talk in the Italian media about the new incentives for hybrid and electric cars being studied by the Minister of Made in Itay, Adolfo Urso, and the government, unions and Stellantis table. But the measures are not yet certain and will have to wait for a series of technical meetings scheduled for the end of February.

The rest of the Agnelli Galaxy saw Ferrari give 0.6 percent, Iveco 0.6 percent, and Juventus on the mid-cap 0.3 percent.

On the cadet segment, fashion still weighed, with Salvatore Ferragamo giving up 3.5 percent after UBS cut its target price to EUR10.50 from EUR11.00 with a 'sell' recommendation.

Also down was Tod's, in the red by 5.6 percent.

Also down was Maire Tecnimont, which gave up 2.9 percent. The company reported that following the award, announced last June, of a nitric acid and ammonium nitrate plant project by KIMA, Egyptian Chemical Industries Company received advance payment and authorization to start engineering work.

Notice to proceed for Engineering Procurement and Construction activities is expected by the end of June 2024. The EPC contract was awarded to a consortium led by Tecnimont for a total value of USD300 million, of which Tecnimont is responsible for approximately USD220 million.

Among smallcaps, algoWatt - in the red by 4.2 percent - on Wednesday reported that it has been awarded a grant of about EUR351,000 for Digital Energy Service Provider activities on the "SIESTA - Secure Interactive Environments for SensiTive data Analytics" project, funded by the European Commission under the Horizon Europe program.

The SIESTA project, with a total duration of 36 months and EU funding of approximately EUR5.0 million, is coordinated by the Agencia Estatal Consejo Superior de Investigaciones Científicas.

PLC relinquished 2.4 percent after it announced Tuesday that it had granted Hitachi Zosen Inova AG an exclusive until Jan. 31, 2024, to negotiate the purchase and sale of the entire stake - equal to 51 percent of the entire share capital - held by PLC in Schmack Biogas Srl.

HZI submitted an offer that considers the value in terms of enterprise value referring to 100% of the share capital of Schmack Biogas and its subsidiaries to be more than EUR19 million, with a price adjustment mechanism typical for this type of transaction.

Among SMEs, GM Leather rose 5.2 percent after it announced Tuesday that it had appointed Christian Guerra as the group's new chief financial officer, effective immediately.

Guerra - who does not hold shares in the company - will replace Marco Malagutti, who has served as interim CFO and will remain co-CEO of the company.

Circle - in the red by 4.2 percent - on Tuesday reported that its subsidiary Magellan Circle was awarded the BlueBARGE project to power ships. Funded by the Horizon Europe program, BlueBARGE will allocate EUR213,000 to CIRCLE over 36 months and will end in December 2026.

Mevim - down 1.2 percent - announced Friday that its board of directors has approved the sale of its entire shareholding constituting the entire share capital of MC Real Estate.

The public deed of sale in the form of an exchange of the shareholding is set at EUR490,000.00, which is substantially in line with the carrying value of the same shareholding in the balance sheet as of December 31, 2022, and will be paid by the counterparty, Demofonte Srl, through the sale in favor of Mevim, of the property owned consisting of a portion of a condominium building located on the second floor of 492 square meters, and consisting of 15 units intended for offices with attached parking space in the Municipality of Novi Ligure whose total value amounts to EUR490,000.00.

In Asia, the Nikkei closed Thursday down 0.5 percent to 33,288.29, the Shanghai Composite gave up 0.4 percent to 2,954.35, and the Hang Seng was up slightly to 16,653.57.

In New York at Wednesday's close, the Dow was down 0.8 percent to 37,430.19, the Nasdaq gave up 1.2 percent to 14,592.21 and the S&P 500 lost 0.8 percent to 4,704.81.

Among currencies, the euro changed hands at USD1.0934 against USD1.0915 recorded at Wednesday's European stock close while the pound is worth USD1.2683 from USD1.2646 last night.

Brent crude is worth USD78.80 per barrel versus USD77.97 per barrel at Wednesday's close. Gold, meanwhile, trades at USD2,046.66 an ounce from USD2,034.61 an ounce last night.

Thursday's macroeconomic calendar includes French inflation at 0845 CET, while starting at 0915 CET and ending at 1030 CET, data on the purchasing managers' index and the composite PMI are expected from some of the major European economies and the Eurozone itself: Spain, Italy, France, Germany and the UK.

Also at 1030 CET, data on mortgages, M3 and M4 money supply and BoE consumer credit are released from the UK.

In the afternoon, Germany's Federal Statistical Office releases the country's inflation data. Overseas, at 1430 CET, from the U.S. comes data on continuing unemployment claims and at 1545 CET, the U.S. purchasing managers' index and composite index.

Finally, at 1700 CET, it is the turn of crude oil stocks data.

Among companies listed on the Milan Stock Exchange, no particular announcements are expected.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

Comments and questions to [e-mail]

Copyright 2024 Alliance News IS Italian Service Ltd. All rights reserved.