Europeans still in the red after PMI data

(Alliance News) - On Thursday, major European stock markets continued to move in negative territory after the release of some July macro data indicating the fastest contraction in activity in the Eurozone since November last year.

In detail, the Hamburg Commercial Bank's Eurozone Composite Index released Thursday and compiled by S&P Global, registered a reading of 48.6 in July, down from 49.9 in June and, more importantly, below the 50.0 threshold that separates growth from contraction.

In addition, Eurostat said industrial producer prices fell an annual 3.4 percent in the eurozone in June, accelerating from a 1.6 percent drop in May.

The FXStreet consensus expected prices to fall 3.1 percent.

Thus, the FTSE Mib gives up 1.0 percent to 28,675.10, the Mid-Cap is in the red 0.8 percent to 42,060.86, the Small-Cap loses 0.4 percent to 26,826.21, and Italy Growth retreats 0.4 percent to 8,980.08.

Paris' CAC 40 is in the red by 1.3 percent, Frankfurt's DAX 40 gives up 0.9 percent while London's FTSE 100 retreats with 1.2 percent.

In Italy, the Italian service sector reported an increase in activity in July, but growth eased to its lowest in six months due to a general stagnation in sales. Price pressures remained prevalent, while employment declined for the first time since April 2021.

On the main index in Piazza Affari, only Interpump, Iveco Group, and Nexi were saved, with gains between 1.0 percent and 0.8 percent.

BPER Banca -- still at the bottom, in the red by 5.3% -- made that known on Wednesday that its half-year profit amounted to EUR719.5 from EUR1.39 billion down 48% from June 30, 2022.

Net interest income stands at EUR1.54 billion, up 97% from EUR785.4 million as of June 30, 2022.

Also hurting was Banco BPM, which, down 3.7 percent, reported Wednesday that as of June 30 it had posted a record profit of EUR624.4 million, its best half-year ever, up 78 percent from the same period in 2022, when profit was EUR351.0 million.

Net interest income for the first half amounted to EUR1.55 billion up from EUR1.04 billion in the same period last year.

Tenaris, on the other hand, gives up 3.0 percent after announcing Wednesday evening that it had approved its main results for the first half of the year.

In the first half, the company reported a profit of USD2.26 billion from EUR1.13 billion as of June 30, 2022 and marking a 99 percent increase.

Ebitda reached USD2.88 billion from USD1.43 billion in H1 2022, up 101% and with Ebitda margin of 35% from 28%.

TIM gives up 2.5 percent after approving its financial report as of June 30 on Wednesday reporting results "fully in line with the targets for fiscal year 2023 that were communicated to the market last February," the company points out.

In the first half of the year, TIM explains, the group posted a loss of EUR813 million, worsening from a loss of EUR483 million in the same period last year. The figure, TIM points out, "reflects the negative effect of net nonrecurring charges of EUR437 million, up from EUR287 million in the first half of 2022."

Total group revenues stood at EUR7.84 billion, up 2.8 percent from EUR7.55 billion in H1 2022.

Ferrari -- in the red by 0.8 percent -- said it reported very good half-year results, so much so that it decided to revise its full-year guidance upward.

In detail, net revenues came in at EUR2.90 billion, up 17 percent from EUR2.47 in the same period last year.

Adjusted net income stood at EUR631 million from EUR490 million as of June 30, 2022, up 29%.

On the Mid-Cap, Datalogic ends at the bottom in the red by 5.5 percent after reporting a half-year profit of EUR12.1 million down from EUR8.8 million recorded in the first half of 2022.

"Due to the continuing uncertainty regarding the timing of the recovery in demand in the main markets in which the group operates, the group's expectations for the second half of the year are for lower sales compared to the previous year," the company explained in a note.

Safilo Group gives up 1.4 percent. On Wednesday it reported sales of EUR550.1 million in the first half of the year from EUR570.9 million in the same period a year earlier.

Group adjusted net income as of June 30 was EUR6.9 million from EUR33.7 million a year earlier.

Tinexta remains on top with 2.7 percent after approving its half-yearly financial report as of June 30, which closed with a net profit of EUR45.4 million compared to EUR14.2 million in the same half-year 2022.

First-half revenues amounted to EUR182.5 million, up 8.6 percent from last year, with all business units making a positive contribution to growth.

On the Small-Cap segment, Equita Group gives up 0.5 percent. On Thursday it announced that it has signed a preliminary agreement with Silvia Rovere to enter the capital of Sensible Capital, an independent real estate advisory boutique, with an initial 30 percent stake and a series of future steps that may lead Equita to consolidate the stake.

Starting in the second year after the closing, in fact, Equita may acquire an additional 40 percent stake in Sensible Capital and thus rise to 70 percent by exercising a call option.

FNM advances with 1.2 percent. The board of directors reviewed and approved Wednesday the condensed interim consolidated financial statements as of June 30, reporting adjusted net income of EUR33.8 million, up from EUR29.8 million in the same period of 2022.

Revenues amounted to EUR301.6 million up from EUR294.0 million.

doValue nears the top, up 2.8 percent after approving Wednesday its half-year financial report as of June 30 reporting net income excluding nonrecurring items of EUR16.9 million down from EUR23.3 million in the first half of 2022.

Net revenues amounted to EUR208.0 million down from EUR237.9 million in the same period last year.

Better does only Gequity, up 5.3 percent.

Somec - in the green by 1.3 percent - reported Thursday two new orders from its subsidiary Mestieri Srl, parent of the division "Mestieri: design and creation of custom interiors," worth a total of EUR10 million.

The EUR9.3 million portion of the consideration agreed upon closing was paid in full in cash and using available resources.

Among SMEs, EdiliziAcrobatica is down 0.6 percent after announcing Thursday that the first half ended with consolidated revenues of EUR78.6 million, up 5.7 percent from the same period a year earlier when they were EUR74.4 million.

Farmacosmo - flat at EUR0.96 - and Laboratorio Farmaceutico Erfo - in the green by 1.5 percent - announced Thursday that they have signed a binding agreement to acquire all of the share capital of FRCM1 Srl owned by MP Holding Srl traceable to Maria Palomba. The company owns the FarmaWoW Portal, an e-commerce company specializing in the Pharma&Beauty sectors with more than 43,000 references in its catalog.

The company reported revenues of about EUR750,000 in the first six months of the year, Ebitda of about 3 percent and NFP essentially zero.

The deal involves the sale of 100 percent of the capital of FRCM1 for a consideration of EUR310,000.

In New York on Wednesday, the Dow Jones closed down 1.0 percent at 35,282.52, the S&P gave up 1.4 percent to 4,513.39, and the Nasdaq left 2.2 percent at 13,973.45 on the parterre.

Among currencies, the euro changed hands at USD1.0927 versus USD1.0935 in Wednesday's closing European equities while the pound was worth USD1.2664 from USD1.2700 on Wednesday evening.

Among commodities, Brent crude is worth USD82.82 per barrel versus USD83.36 per barrel at Wednesday's close. Gold, meanwhile, trades at USD1,937.14 an ounce from USD1,970.85 an ounce on Wednesday evening.

On Thursday's economic calendar, the Bank of England's decision on interest rates is expected at 1300 CEST.

Overseas, at 1430 CEST come the continuing unemployment claims, while at 1545 CEST it is the turn of data on the composite PMI and the purchasing managers' index for the services sector.

Among the companies listed in Piazza Affari, results from Ariston Holding, Banca Monte dei Paschi di Siena, BFF Bank, Buzzi Unicem, illimity Bank and Salvatore Ferragamo, among others, are expected.

By Chiara Bruschi, Alliance News reporter

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