Business Square in the red on the eve of ECB meeting

(Alliance News) - Business Square fell on the eve of the European Central Bank meeting, which is expected to decide to halt the rate hike after more than a year.

Analysts expect rates in the single currency area to remain at high levels for a while longer, with the ECB likely to keep them "higher for longer." But tepid economic data and tighter bank lending conditions make another increase unlikely.

The emergence of greater geopolitical risks, due to the conflict in the Middle East, could muddy the waters a bit as it could raise energy costs and reignite inflationary concerns.

The FTSE Mib closed Wednesday down 0.5 percent to 27,445.35, the Mid-Cap fell 1.1 percent to 37,785.66, the Small-Cap dropped 1.8 percent to 23,981.02, and Italy Growth lost 0.8 percent to 7,685.67.

London's FTSE 100 closed up 0.4 percent, Paris' CAC 40 gained 0.3 percent and Frankfurt's DAX 40 rose 0.2.

On the main list in Piazza Affari, Banca Monte dei Paschi lost 2.3 percent, following up on its eve's loss that closed down 0.3 percent.

Negative note also on Telecom Italia, in the red by 4.1 percent with price at EUR0.2390, following up on the previous four bearish sessions.

UniCredit, on the other hand, is giving up 2.2%, with price at EUR22.4950 per share, after two bullish sessions. Of note, Barclays, UBS and JP Morgan have raised their target prices on the stock.

On Tuesday morning, the board of directors approved "record results" for the first nine months of the year, during which the group made a profit of EUR6.70 billion, up nearly 68 percent from EUR4.00 billion in the same period of 2022.

In the third quarter, the group realized revenues of EUR6.00 billion, up 24 percent from EUR4.82 billion in the third quarter of 2022. Net interest income amounted to EUR3.60 billion, up 45 percent from EUR2.48 billion in the same period of 2022, mainly due to higher interest rates and good management of deposit pass-through.

Enel -- down 0.4 percent -- and its listed subsidiary Enel Chile announced Wednesday that they had finalized the sale to Sonnedix of their entire shareholdings in the share capital of Arcadia Generación Solar, a Chilean company that owns a portfolio of four operating photovoltaic plants totaling about 416 MW of installed capacity. The buyer paid a total consideration of USD556 million, or approximately EUR525 million, corresponding to 100 percent of the enterprise value agreed by the parties.

The board of directors of Italgas -- up 0.3 percent -- approved the consolidated results for the first nine months, which closed with adjusted net income attributable to the group of EUR316.7 million, up nearly 11 percent from September 30, 2022 when it was EUR285.9 million. Total revenues were EUR1.37 billion, up 26 percent over the same period last year from EUR1.09 billion.

Also advancing is Banco BPM, which is priced up 1.0 percent after eve's 1.9 percent red.

On the cadet segment, Antares Vision lost 10% to EUR2.52, a new 52-week low.

Eurogroup Laminations retreats 6.2%, also updating its one-year low to EUR3.20 per share.

Webuild ivnstead lost 2.4% after two sessions closed with a bullish candle.

Also on a positive note was Salcef, which moved up 2.8 percent and with the company continuing its buyback program on a regular basis. Most recently, it reported Monday that it bought back 27,703 of its own ordinary shares between Oct. 16 and Oct. 20, for a total value of about EUR620,000.

Salvatore Ferragamo marks an increase of 0.2 percent. Of note, on the stock Kepler Chevreux cut the target price to EUR10.00 from EUR13.00, while Goldman Sachs raised it to EUR13.60 from EUR14.00 per share.

On the Small-Cap, Aeffe gave up 3.9 percent to EUR0.7340, with the stock marking a new 52-week low at EUR0.71.

Geox lost 8.0%, updating a new annual low of EUR0.6470 per share.

Esprinet - down 4.1 percent - announced Tuesday that the deed of merger by incorporation into of its wholly owned subsidiary 4Side has been finalized.

Mondo TV--down 4.8 percent--reported Tuesday that it has signed an agreement with Mi Media International, a major Asian distributor, for the placement of the animated series Meteo Heroes in Brunei. The final agreement covers freetv, internet, mobile rights for the next three years against payment of a "flat fee."

Among SMEs, Comal climbs 1.9 percent after a 0.6 percent red note on the eve of the deal while Cofle--up 1.2 percent--reported Wednesday that the board of directors reviewed consolidated revenues for the first nine months of the year, which came in at EUR46.8 million, up nearly 18 percent from the same period last year, when it was EUR39.7 million.

The board also resolved to propose to the shareholders' meeting the adoption of a plan to purchase and dispose of treasury shares up to a maximum number not exceeding 20 percent of the company's capital. The amount that can be used for the purchase of treasury shares was set at EUR1 million.

Among the bearish, Clabo slumps 42 percent, albeit with low volumes of 14,000 changed hands.

In New York, the Dow falls 0.1 percent to 33,108.01, the Nasdaq gives up 1.4 percent to 12,954.56, and the S&P 500 loses 0.8 percent to 4,213.65.

Among currencies, the euro changes hands at USD1.05730 against USD1.0590 recorded in Tuesday's European stock close while the pound is worth USD1.2128 from USD1.2166 last night.

Among commodities, Brent crude is worth USD87.46 per barrel from USD88.05 per barrel at yesterday's close. Gold, meanwhile, trades at USD1,977.38 an ounce from USD1,967.77 an ounce last night.

Thursday's macroeconomic calendar includes Spanish unemployment data at 0900 CEST and a six-month BOT auction in Italy at 1110 CEST.

The highlight of the day is expected at 1415 CEST, with the ECB's rate decision, followed - half an hour later - by a lecture by the president, Christine Lagarde.

In the US, eyes on jobless claims and Gross Domestic Product, coming at 1430 CEST, while data on natural gas stocks will be released at 1630 CEST, an hour before two auctions of four- and eight-week T-Notes while seven-year Treasury bonds will be sold at 1900 CEST. The day will close with the Federal Reserve's balance sheet, due at 2230 CEST.

Among companies in Piazza Affari, accounts from Campari, Eni, Maire Tecnimont, Mediobanca, Moncler and STMicroelectronics, among others, are expected.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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