Stock markets to rebound on Fed day

(Alliance News) - European stock markets on Wednesday are set for an upward opening after recent declines ahead of the U.S. inflation data and the Federal Reserve's decision. The U.S. central bank is expected to hold interest rates steady, but traders will watch updates to economic projections for clues on the path of rates.

Investors also weighed data showing the UK economy stalled in April, in line with expectations.

In the corporate world, Eni on Wednesday announced the successful completion of the placement of a 10 percent stake in the share capital of Saipem Spa at EUR1.970 per share, for a total consideration of about EUR393 million.

As a result of the placement, which took place through an accelerated bookbuilding process aimed at institutional investors, Eni holds just under 423 million shares of Saipem stock representing approximately 21.19 percent of the share capital. Of these, 12.50 percent of the share capital contributed to the shareholders' agreement with CDP Equity Spa.

Thus, the Mib-after giving up 1.9 percent to 33,874.48 last night-is marking a gain of 162.50 points.

In Europe, London's FTSE 100 advances 46.70 points, Paris' CAC 40 advances 38.00 points, and Frankfurt's DAX 40 advances 94.60 points.

Last night, the Mid-Cap retreated 1.7 percent to 47,269.28, the Small-Cap closed 1.2 percent in the red to 28,936.72 while the Italy Growth closed 1.1 percent down to 8,106.29.

On the Mib on Tuesday, among the few bullish contributors, Amplifon advanced 0.6 percent with new price at EUR33.83 per share, after declining 1.1 percent on the eve of the day. Of note, Grantham, Mayo, Van Otterloo & Co. has a net short position on the stock of 0.92 percent.

Good buys also on Brunello Cucinelli, which posted a plus 0.9%, rearing its head after three sessions closed with bearish candles.

At the back of the pack, Banco BPM gave up 4.4 percent, following up the eve's decline with 1 percent. It is worth noting that the stock in the annual time frame registers an increase close to 70 percent.

Also hanging on was Banca Monte dei Paschi, which gave up 4.9 percent, in its third bearish session and closing as the worst.

Poste Italiane gave up 1.6 percent after 0.3 percent red in the previous session. It should be noted that the company announced Monday that it had bought back its own shares during the day for a total value of EUR3.0 million. Poste thus concluded a first tranche of the share buyback program, implemented under the authorization resolved by the shareholders' meeting on May 31, 2024.

On the cadet segment, The Italian Sea Group moved up 2.0 percent. The company announced that its board of directors has resolved to co-opt Simona Del Re, appointing her as company president until the next shareholders' meeting.

For Carel Industries, on the other hand, the rise was 0.2 percent, in its third session in a row closed with a bullish candle.

SAES Getters, on the other hand, closed 0.5 percent in the red at EUR27.55. SGG Holding announced that it has raised the offer on SAES Getters shares as part of the tender offer launched last month. The new consideration for the takeover bid is EUR28.00, up from EUR26.30 per share offered earlier.

Iren gave up 2.5 percent. The company announced on Monday that it and the Council of Europe Development Bank had signed a EUR80 million green-format Public Finance Facility loan, usable in several tranches with a term of up to 16 years, which will be used to finance part of Iren's water infrastructure investment plan in the provinces of Genoa and La Spezia.

Backwardation also for Italmobiliare, which slipped 4.6 percent to EUR29.25 per share, in the aftermath of the 3.4 percent green.

On the Small-Cap, Conafi advanced 6.0%, with new price at EUR0.2310 after two bearish sessions.

Tessellis, on the other hand, rallied 4.4%, rebounding after a 10% decline in the previous session.

doValue - in the green by 0.7 percent - reported Tuesday that the Madrid High Court of Justice ruled in its favor, rejecting Altamira Asset Management Holding SL's attempt to annul an earlier decision requiring it to make a payment to doValue related to a tax claim. As a result of this decision, the doValue group will record financial income of EUR22.7 million, the company's note says, which will have a positive impact on first-half net income of about EUR0.28 per share

Piquadro, on the other hand, fell 4.0 percent after two sessions closed with bullish candlestick. The company on Monday approved the draft financial statements for the fiscal year from April 1, 2023 to March 31, 2024 and the consolidated financial statements to March 31, 2024, reporting a 62 percent increase in profit to EUR10.5 million from EUR6.5 million a year earlier. Revenues amounted to EUR185.5 million up from EUR177.6 million a year earlier.

Newlat Food, on the other hand, contracted 4.6 percent, subject to profit taking after six sessions closed with bullish candlestick.

Among SMEs, Clabo advanced 1.9 percent to EUR2.14 per share, following two sessions closed among the bearish.

Bellini Nautica, on the other hand, advanced 5.7 percent, ringing up its sixth session in a row with a positive balance.

SolidWorld Group gave up 8.3 percent. The company announced Monday evening that its board of directors has approved a capital increase by issuing a maximum of 811,250 new ordinary shares at EUR2.8 each and a maximum of EUR2.3 million.

Ecomembrane, on the other hand, gave up 5.6 percent, pricing itself at EUR5.90. The stock in the 52-week interval has moved in a price range between EUR4.96 touched last April, and a high of EUR10.15 recorded in July 2023.

In New York on European night, the Dow gave up 0.3 percent, the Nasdaq picked up 0.8 percent, and the S&P 500 picked up 0.3 percent.

Among Asian marketplaces, the Nikkei contracted 0.7 percent, the Shanghai Composite trades plus 0.4 percent, while the Hang Seng is giving up 1.1 percent.

Among currencies, the euro changed hands to USD1.0745 from USD1.0728 yesterday in closing European equities while the pound is worth USD1.2748 from USD1.2723 Tuesday evening.

Among commodities, Brent crude is trading at USD82.44 per barrel from USD82.00 per barrel at Tuesday's close. Gold, on the other hand, trades at USD2,316.03 an ounce from USD2,315.27 on Tuesday evening.

On Wednesday's macroeconomic calendar, at 1110 CEST, an auction of Italian 12-month BOTs is scheduled. At 1130 CEST, a speech by Schnabel of the European Central Bank is scheduled instead.

At 1300 CEST, from the US, will come the mortgage report. At 1430 CEST, on the other hand, again from the U.S., the inflation figure is due. At 1630 CEST, eyes on the crude oil stocks report, the EIA report and the Cushing inventory.

At 2000 CEST, focus on the announcement of the FOMC interest rate decision, with Powell's press conference expected at 2030 CEST.

Among the companies in the Square, no particular announcements are scheduled.

By Maurizio Carta, Alliance News reporter

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