Iveco tops; Fed discounted on rate confirmation

(Alliance News) - The Mib continued higher in the third session of the week, with the point bar hovering above 36,200.

Investors are preparing for a 25 basis point interest rate cut by the European Central Bank, following four cuts in 2024. Traders will also monitor any signals regarding the central bank's plans for this year, with markets expecting further rate cuts in the coming months.

In the U.S., on the other hand, the Federal Reserve is expected to keep rates stable. In this regard, the Federal Reserve's upcoming rate decision is the most predictable "no change" in recent years, according to Jeffrey Gundlach of DoubleLine Capital.

While the Fed is widely expected to keep rates unchanged at Wednesday's meeting, traders have increased bullish "bets" on U.S. government bonds, hoping that Chairman Jerome Powell may signal a possible rate cut at the March meeting.

According to Gundlach, the focus of Powell's press conference should be on the dual mandate of price stability and full employment, "more than ever, as there is now a tension between these two objectives."

The FTSE Mib is trading 0.4 percent higher at 36,285.48 points.

In Europe, London's FTSE 100 is advancing 0.2 percent, Paris' CAC 40 is giving up 0.1 percent, and Frankfurt's DAX 40 is ahead 0.7 percent.

Among the smaller lists, the Mid-Cap is up 0.7 percent to 49,237.60, the Small-Cap is up 0.2 percent to 28,207.24, and Italy Growth is ahead 0.5 percent to 7,789.80.

In Milan, on the highest-capitalization list on the Milan Stock Exchange, Iveco is ahead 3.9 percent at EUR11.52 per share. Of note on the stock, Marshall Wace has limned its short position on Iveco Group to 1.35% from 1.40%.

Strength also on Saipem, which gains 2.1% to EUR2.35 per share. Of note, Citadel Advisors Europe has limned its short position on the stock to 0.98 percent from 1.02 percent previously.

Prysmian, on the other hand, marks a plus 3.5 percent to EUR64.96 per share, rearing its head again after two sessions in which it gave up more than 12 percent.

Mediobanca -- in the green by 1.1 percent -- on Tuesday made it known that it considers the OPS of Banca Monte dei Paschi di Siena Spa to be "devoid of industrial and financial rationale and destructive of Mediobanca's value," according to a note released by the company. It also explained that the offer had not been agreed upon.

Rocca Salimbeni's stock, on the other hand, advanced 2.2 percent, on a positive balance after three sessions in which selling prevailed.

On the MidCap, sprint start for De'Longhi, which is up 5.2 percent to EUR34.24 and updated during trading the high in the 52-week time frame to EUR34.62 per share. The company reported Tuesday that it ended 2024 with revenues of EUR3.50 billion, up 14 percent from 2023.

In the fourth quarter, however, revenues stood at EUR1.27 billion, up 18 percent from the same period a year earlier.

Technoprobe, meanwhile, advances 2.9%, rebounding after four bearish sessions.

Safilo Group - up 7.0% - on Tuesday reported preliminary 2024 net sales of EUR993.2 million, down 2.3% from 2023.

Sales on Garofalo, which depreciates 0.4% to EUR5.18 per share after Tuesday night's 2.4% gain.

List tails for Salvatore Ferragamo, which trades minus 2.2%, in its third bearish session.

On the SmallCap, Tessellis depreciates 0.9% to EUR0.2185, after two sessions in which it rallied an aggregate 12%.

doValue - down 2.1 percent after gaining 13 percent in two sessions - announced Tuesday the signing of new mandates in Italy through its subsidiary Gardant Spa, bringing total assets under management in the Bel Paese to EUR1.50 billion since the beginning of the year. The company explained in a note that it believes the contraction is due to the end of the Jimmy Choo license.

KME Group, on the other hand, advances 3.4 percent to EUR0.92, after two sessions closed among the bearish.

Strength also on SS Lazio, ahead 2.6 percent after two bearish sessions and with new price at EUR0.9540 per share.

Among SMEs, Almawave advances 2.8% after a 2.7% decline in the previous session, with price at EUR2.61 per share.

Ecosuntek, meanwhile, advances 3.5% to EUR17.65 per share, rebounding after eight bearish sessions.

Gismondi 1754 - down 2.3 percent - reported that it ended the fourth quarter of 2024 with revenues of EUR2.4 million, down 37 percent from EUR3.8 million in the same period a year earlier. The EUR1.4 million decline was mainly attributable to a decline in sales in the U.S. Wholesale, Wholesale Europe and Special Sales channels.

For Esautomotion, on the other hand, the contraction is 1.9 percent, after a 7 percent profit on Tuesday night.

Among Asian exchanges, the Nikkei rallied 1.0 percent as the Shanghai and Hong Kong exchanges remained closed for Chinese New Year.

Among currencies, the euro changed hands at USD1.0434 versus USD1.0426 at Tuesday's European stock close. In contrast, the pound is worth USD1.2456 from USD1.2431 last night.

Among commodities, Brent crude is worth USD77.38 per barrel from USD75.95 per barrel at Tuesday's European stock close. Gold trades at USD2,759.32 an ounce from USD2,791.61 an ounce last night.

Wednesday's macroeconomic calendar features the 30-year MBA mortgage rate and mortgage applications in the afternoon at 1300 CET from the US.

On the central banking front, at 1415 CET, ECB monetary policy statements are scheduled, followed at 1445 CET by the ECB press conference.

At 1515 CET a speech by BoE Governor Andrew Bailey is expected.

At 2000 CET the U.S. announces FOMC decisions and the Fed's funds rate decision.

By Maurizio Carta, Alliance News reporter

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