Stock exchanges up except Frankfurt ahead of GDP data

(Alliance News) - On Tuesday, major European stock exchanges confirm expectations and open in positive territory, except for Frankfurt's DAX, which trades below the parity line at the start, on a day when data on, among others, Gross Domestic Product of major Eurozone economies are expected.

Thus, the FTSE Mib is in the green by 0.3 percent to 30,309.08, the Mid-Cap gains 0.1 percent to 45,334.39, as does the Small-Cap to 27,784.85, while Italy Growth gains 0.2 percent to 8,329.68.

In Europe, Paris' CAC 40 is in the green by 0.1 percent, London's FTSE 100 gains 0.2 percent, while Frankfurt's DAX 40 gives up 0.1 percent.

"Today's European economic data may also anticipate market expectations about the first rate cut by the European Central Bank. At the end of last year, the ECB was quick to dismiss the idea that we might see a rate cut well before the summer of this year, citing December's sharp rise in CPI and concerns about high wage growth. But the consensus is beginning to crack, following comments yesterday by Portuguese ECB Governing Council member Mario Centeno, who said that rate cuts should start sooner rather than later so that the process is gradual, without the need to wait for wage data," commented Michael Hewson, chief market analyst at CMC Markets.

"Today's fourth-quarter GDP data from the four largest European economies could advance the June deadline to April, with markets now expecting the first rate cut at the April meeting, sending the EUR/USD pair below 1.0800 for the first time in six weeks."

In macroeconomic news, the French economy showed no growth in the fourth quarter. The data were in line with market expectations, with a positive contribution from net trade offsetting the drag from final domestic demand and inventory changes.

On a year-over-year basis, the economy expanded by 0.7 percent in the fourth quarter, following a 0.6 percent advance earlier in the year. For the full year, the country's GDP increased by 0.9 percent, much less than the 2.5 percent growth in 2022 and 6.4 percent in 2021.

On the Mib, Iveco Group does best of all, up 1.2 percent, followed by banks, with Mediobanca and Banca Monte dei Paschi di Siena closing out the podium by rising 1.0 percent and 0.9 percent, respectively.

At the open, Assicurazioni Generali gives ground, in the red by 0.4%, after announcing its intention to initiate a EUR500 million share buyback plan by 2024, to be submitted first to the April shareholders' meeting.

ERG gives up 0.5 percent, after announcing the finalization of the acquisition from QEnergy France SAS, a leading renewable energy operator in France, of 100 percent of CEPE Renouvellement Haut Cabardès SAS, a company that owns a 73.2 MW wind and solar portfolio in France.

The finalization of this transaction allows ERG to consolidate its position in France, the second largest market after Italy, reaching 674 MW of installed capacity in the country, about 20 percent of which is composed of solar.

Among the bearish performers is Saipem, which gives up 7.3 percent and sits at the bottom. Fashion also fares badly, with Moncler giving up 0.9 percent and Brunello Cucinelli leaving 0.6 percent on the parterre.

On the Mid-Cap, fashion's downtrend continues with Salvatore Ferragamo giving up 1.1 percent at the start and a few days after reporting preliminary results for 2023, with revenues coming in at EUR1.16 billion from EUR1.25 billion in the previous year and therefore down 7.6 percent.

It does better than all Digital Value, up 4.7 percent. The company announced that it bought back 5,324 of its own ordinary shares between January 22 and 26.

The shares were taken over at an average unit price of EUR57.80 or so, for a total value of EUR308,512.60.

On the Small-Cap, Biesse - up 0.8 percent - on Monday reported that, as the conditions precedent stipulated in the acquisition agreement had been met, the acquisition of the entire share capital of GMM Finance Srl, the holding company at the head of the GMM Group to which GMM Spa, Bavelloni Spa and Techni Waterjet Ltd, as well as their respective Italian and foreign subsidiaries, active in the sectors of machine tools for processing stone, glass and other materials, belonged.

The provisional acquisition consideration of approximately EUR69 million was fully settled in cash starting from an enterprise value of EUR86.5 million and taking into account a Net Debt Financial Position.

Aeffe - in the green by 0.8 percent - announced that Adrian Appiolaza is the new creative director of Moschino.

Among SMEs, ESI rises 0.4 percent after letting it be known that the board of directors confirmed Riccardo Di Pietrogiacomo to the role of CEO and replaced resigning director Matteo Marini, appointing Valerio Verderio by co-optation.

Alfonsino is not yet affected by the exchanges. The company Tuesday reported preliminary revenues for 2023, in which they came in at EUR4.3 million, down 7.0 percent from EUR4.6 million for 2022.

In Asia, the Nikkei closed Tuesday up 0.1 percent to 36,065.86, the Shanghai Composite lost 1.8 percent to 2,830.53 and the Hang Seng gave up 2.4 percent to 15,690.37.

In New York, at Monday's close, the Dow gained 0.6 percent to 38,333.45, the Nasdaq rose 1.1 percent to 15,628.04 and the S&P 500 was up 0.8 percent to 4,927.93.

Among currencies, the euro changed hands at USD1.0823 against USD1.0805 recorded at Monday's European stock close while the pound is worth USD1.2691 from USD1.2679 last night.

Brent crude is worth USD81.86 per barrel versus USD81.91 per barrel at Monday's close. Gold, meanwhile, trades at USD2,056.55 an ounce from USD2,027.45 an ounce on Monday evening.

On Tuesday's calendar, at 1000 CET, GDP data will come from Italy and Germany. At 1100 CET, again from Italy, coming up on producer prices.

Still at 1100 CET, from the Eurozone will come consumer and business reports, as well as service sector sentiment.

At 1110 CET, an auction of 5- and 10-year Treasury bonds is scheduled.

From the States, at 1500 CET, eyes on the housing price index, while at 2230 CET the weekly oil stocks report will be due.

On the corporate calendar, Clabo, Cofle, Caribbean Company, ELSA Solutions, Emak, Fervi, and Safilo Group will release results.

By Claudia Cavaliere, Alliance News reporter

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