Lists still down; MPS confirmed bearish

(Alliance News) - European stock markets opened lower Thursday, following up on the significant sell-off on the eve of the meeting. The ongoing issue of the U.S. debt ceiling continued to weigh on global markets, with the White House and Republicans letting it be known that they have made progress in the latest round of talks, but still without any significant breakthrough.

On the economic front, revised data on German Gross Domestic Product revealed that Europe's largest economy entered recession in the first quarter, while consumer morale in the country showed improvement as June approached.

Coming to the Federal Reserve, in the CME Group platform's FedWatch Tool, using futures also based on the actual federal funds rate or EFFR, confirmation of the rate at the June 14 meeting has a probability dropping to 69 percent for confirmation in the 500/525 basis point range.

In contrast, the 25 bps rise in the 525/550 bps target is priced at 31%.

Thus, the FTSE Mib is down 0.5 percent at 26,383.22.

London's FTSE 100 is in the red by 0.3 percent as is Paris' CAC 40, while Frankfurt's DAX 40 is down 0.1 percent.

Among the smaller Milanese lists, the Mid-Cap is down 0.4 percent to 41,672.36, the Small-Cap is up 0.2 percent to 27,557.62, while Italy Growth is in the fractional red at 9,121.89.

On the main list of Piazza Affari, Generali, after opening up, gives up 0.3 percent a few minutes after the bell rings. The board of directors approved financial information as of March 31, 2023, which shows gross premiums up 1.3 percent to EUR22.16 billion from EUR21.53 billion in the same period a year earlier, "thanks to robust growth in the Non-Life segment," according to the company note.

Operating income grows to EUR1.82 billion, up 22 percent from EUR1.49 billion, mainly due to the contribution of the non-life segment.

Advancing Amplifon, which scores a plus 0.8 percent after three sessions ended among the bearish.

In red, the color that dominates the list, Banca Monte dei Paschi gives up 1.4 percent, on the heels of heavy losses on the eve with 7.1 percent.

CNH Industrial, on the other hand, is giving up 0.8 percent, continuing in the red after eve's 4.4 percent loss.

Passive 0.8% also for Iveco, heading for the fourth session to end in negative balance.

On the cadet segment, Carel Industries comes out on top advancing 1.5%with new price at EUR24.20.

Ascopiave, on the other hand, rises 1.4 percent, with the stock showing a loss of 8.7 percent on the weekly.

At the tail end, Mondadori contracts 1.0%, following the eve's red with 2.1%.

Fincantieri, on the other hand, gives up 1.3%, positioning its snout toward the fourth bearish session.

On the small-cap side, Eukedos advances 8.5 percent. The stock rebounds after two sessions in which it gave up a cumulative more than 21%.

Sabaf, on the other hand, gives up 2.4 percent, with new price at EUR15.32.

Passive - among many - also for Itway, which contracts 2.3 percent. The stock, which has not detached its dividend since 2009, marks a weekly in the green by 7.7%.

Aeffe, on the other hand, gives up 1.5 percent to EUR1.1980, faedoing the previous two sessions that closed lower.

Among PMIs, GO internet advances 8.3%, in its third bullish session.

At the tail end, in a list still with little movement, Bifire is giving up 1.7%, also on its third bullish session.

Rear-ends also for Agatos, which is flexing 1.2 percent heading for its fourth session to close lower.

In New York overnight Europe, the Dow gave up 0.8 percent, the Nasdaq 0.6 percent while the S&P 500 left 0.7 percent on the parterre.

Among Asian exchanges, the Hang Seng is giving up 2.1 percent, the Shanghai Composite lost 0.1 percent while the Nikkei picked up 0.4 percent.

Among currencies, the euro changed hands at USD1.0722 against USD1.0757 on Wednesday in closing European equities. In contrast, the pound is worth USD1.2349 from USD1.2366 on Tuesday evening.

Among commodities, Brent crude is worth USD77.89 per barrel versus USD78.24 per barrel on Wednesday night. Gold, on the other hand, trades at USD1,960.00 an ounce from USD1,965.76 an ounce last night.

On Thursday's macroeconomic calendar, at 1430 CEST the Gross Domestic Product will be released in the US, at the same time as the data on initial claims for unemployment benefits.

From Canada, also at 1430 CEST, will come manufacturing sales.

In the stock market, DHH's quarterly results are expected.

By Maurizio Carta, Alliance News reporter

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