(Alliance News) - Piazza Affari--aligning with other European marketplaces--is expected to open lower due to, among other things, concerns about China's economic stability that resurfaced Monday after the Evergrande Group announced it was unable to issue new debt through one of its subsidiaries.

Stephen Innes, managing partner of SPI Asset Management, said that while this development is not surprising to those who follow China's real estate market closely, it has nonetheless rekindled concerns that the country's real estate sector is still deteriorating rather than showing signs of improvement and that risks to financial stability are "increasing."

On Monday, rating agency Moody's warned that a U.S. government shutdown this weekend amid political gridlock in Congress would have negative implications for the country's credit rating.

The warning from Moody's--the only major agency to maintain U.S. sovereign debt ratings at the highest levels--underscores the potential economic danger to the United States should an agreement to keep the government funded not be reached before the end of the month. A shutdown "would underscore the weakness of U.S. institutional and governance strength relative to other AAA-rated sovereign bonds," Moody's wrote.

"Moreover, a prolonged shutdown would be disruptive to the U.S. economy and financial markets, with potential negative consequences for the sustainability of sovereign debt," the U.S. rating agency added.

Thus, the FTSE Mib, according to IG futures, is marking a decline of 80.00 points, after giving up 0.7 percent to 28,382.19 last night.

In Europe, London's FTSE 100 is giving up 15.50 points, Paris' CAC 40 is marking minus 34.00 points, and Frankfurt's DAX 40 is retreating 34.00 points.

Among the smaller lists on Monday, the Mid-Cap fell 1.5 percent to 39,520.11, the Small-Cap closed 1.0 percent in the red to 25,779.89, and Italy Growth fell back 0.8 percent to 8,447.93.

On the main list of Piazza Affari last night, good session for Banco BPM, which remained afloat in an almost completely bearish list. The stock marked a plus 2.0% at EUR4.72 and touched a new 52-week high at EUR4.80 per share.

Good buying also on Iveco, which moved ahead 0.9 percent with new price at EUR9.19 per share on the heels of Friday night's 0.4 percent green.

Amplifon, on the other hand, led the large bearish group, giving up 3.9% to EUR28.00. Of note, Millennium International Management revised its short position on the stock to 0.68 percent from 0.7 percent previously.

Nexi, on the other hand, left 3.7% on the parterre, after a 0.9% loss on the eve.

Prysmian, on the other hand, gives up 0.8%, in its third bearish session.

Telecom Italia--declining 3.2%--on Friday reported that, as part of its ongoing negotiations with Kohlberg Kravis Roberts & Co LP, it has received a request from KKR for an extension to October 15 of the exclusivity period to conclude preparatory activities and submit the binding offer on Netco. TIM's board of directors will consider the request received at its meeting on September 27.

On the Mid-Cap, the rear end saw Tinexta, which gave up 6.7 percent, closing at a loss for the third consecutive session.

Antares, on the other hand, left 6.6 percent on the parterre, closing negative for the tenth consecutive session.

MARR, on the other hand, posted minus 5.4 percent, in its third straight session among the bearish.

Significant selling also on Saras, which closes down 4.2 percent. Of note, Marshall Wace raised its short position on the stock to 1.5% from 1.43%.

Anima Holding, on the other hand, advanced 3.6 percent, with new price at EUR4.05 per share. The company reported Monday that it bought back its own ordinary shares between Sept. 18 and Sept. 22, with a total value of nearly EUR2.5 million.

On the small-cap side, CSP International--down 0.6 percent--reported Friday evening that its board of directors approved its half-year financial report as of June 30, reporting a loss down to EUR1.9 million from a negative EUR2.3 in the first half of 2022.

algoWatt, on the other hand, gave up 6.5 percent to EUR0.36. The stock hit a new 52-week low at EUR0.35.

Avio, on the other hand, steps back 4.8 percent to EUR8.20 per share, in its fourth bearish session.

PLC, on the other hand, gave up 1.0 percent to EUR1.46 per share after announcing on Friday that one of the group's companies, PLC System Srl, has signed a contract with wpd constructions for the construction of the utility substation serving a wind farm with a capacity of more than 30.1 MWp, located in Licata, in the province of Agrigento. The total consideration for the contract amounts to more than EUR3.8 million.

It rose 3.1% Itway, after closing up 4.7% Friday evening.

SIT, on the other hand, advanced 4.2%, after closing down 0.8% Friday.

Netweek rallied 6.7 percent to EUR0.3170, after closing 0.7 percent green Friday night.

Among PMIs, Ambromobiliare advanced 5.3%, rebounding after three sessions in the red.

Also doing well was H-Farm, which took home 3.3%, with the stock not closing positive for several sessions.

Valtecne gave up 1.2%, despite reporting that it closed the half-year with a profit of EUR2.4 million, up 46% from the first half of 2022, when the result was EUR1.6 million.

Trendevice, on the other hand, gave up 6.9 percent, with new price at EUR0.2420. The liability, on the weekly time frame, is 26 percent.

In New York, on European night, the Dow rallied 0.1 percent, the Nasdaq closed in the green by 0.5 percent, and the S&P 500 closed in the green by 0.4 percent.

Among the Asian exchanges, the Hang Seng is giving up 0.9 percent, the Shanghai Composite 0.3 percent, while the Nikkei posted minus 1.0 percent.

Among currencies, the euro changed hands at USD1.0586 versus USD1.0666 in Friday's European stock close while the pound is instead worth USD1.2209 from USD1.2279 on Friday evening.

Among commodities, Brent crude is worth USD92.55 per barrel versus USD92.88 per barrel at Monday's close. Gold, meanwhile, trades at USD1,913.28 an ounce from USD1,918.19 an ounce on Monday evening.

On Tuesday's calendar, from the US, at 1400 CEST, building permits released are expected, while at 1600 CEST it will be the turn of the data on new home sales. At 1900 CEST, FOMC member Bowman's speech is scheduled, while at 2230 CEST come weekly oil inventories.

On the corporate calendar, ABP Nocivelli Company of the Caribbean, Danieli & C, Doxee, ErreDue, eVISO, Frendy Energy and Gambero Rosso and iVision Tech are among the many half-year results coming in.

By Maurizio Carta, Alliance News reporter

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