Mib continues bullish; De' Longhi still bullish

(Alliance News) - European stock markets continue on a bullish path Wednesday, with investors' attention focused on the European Central Bank's Sintra conference, where traders are focusing on insights to come from the heads of the Federal Reserve, ECB, Bank of Japan and Bank of England on the future outlook for interest rates.

In the CME Group platform's FedWatch Tool, using futures also based on the actual federal funds rate, or EFFR, the confirmation of the rate at the July 26 meeting has a 23 percent probability for confirmation in the 500/525 bps range. In contrast, the 25 bps hike in the 525/550 bps target is priced at 77 percent.

Among domestic data, consumer prices in Italy in June rose at a much lower pace than they did the month before on a year-over-year basis, according to preliminary estimates released by Istat on Wednesday. Italy's annual inflation is estimated at 6.4 percent in June, slowing from 7.6 percent in May and below FxStreet's estimate of 6.8 percent.

Thus, the FTSE Mib advances 0.4 percent to 27,505.99.

Among the smaller listings, the Mid-Cap picks up 0.3% to 42,079.31, the Small-Cap is just below par at 26,640.85, and Italy Growth is in the green by 0.2% to 9,028.33.

In Europe, Paris' CAC 40 is rising 0.8 percent, London's FTSE 100 is advancing 0.5 percent, and Frankfurt's DAX is up 0.7 percent.

On the main index of Piazza Affari, STMicroelectronics--among the best performers since the bell rang--continues to stay in the quarters, posting a plus 1.8% after its 1.0% loss on the eve of the event.

Prysmian, best on the list, on the other hand, appreciates 2.4%, with new price at EUR36.86. after 3.1% green on eve.

Good purchases also on Banco BPM, which advances 0.5% and brings its price to EUR4.0620, following eve's green with 1.7%. Jefferies raised the target price to EUR6.50 from EUR5.70.

Iveco Group, on the other hand, marks a plus 1.0 percent. The company announced Wednesday that Francesco Tanzi will leave his role as the company's chief financial officer and take a new position in another industry sector by the end of the third quarter of this year.

Moncler, on the other hand, gives up 1.1 percent, positioning its snout heading into the eighth session on the bearish side.

On the MidCap strength on SOL, which marks a plus 2.4 percent bringing the price to EUR26.10 per share.

Caltagirone, on the other hand, advances 2.0 percent. Of note, the stock marks a green of more than 30 percent since the beginning of the year.

De'Longhi moves ahead 1.5%, heading for the fourth session to end among the bullish.

Jefferies upgraded its recommendation on Credito Emiliano to Buy from Hold, with target price at EUR8.90.

CIR--flat at EUR0.37--reported Monday that it bought back its own ordinary shares between June 19 and June 23 for a total value of EUR229,000 or so.

GVS, on the other hand, steps back 9.8 percent to EUR4.9420. On the stock, Goldman Sachs lowered its target price to EUR4.70 from EUR4.80.

On the SmallCap, Softlab advances with 4.4 percent on the heels of eve's 2.2 percent.

Aquafil, on the other hand, advances with 2.6 percent to EUR3.7050 after eve's 4.7 percent decline.

d'Amico International Shipping -- down 0.8 percent -- announced Monday that it had purchased 100,000 of its own shares in the period between June 19 and June 23, for a total consideration of EUR363,000 or so.

Bioera, on the other hand, gives up 3.5 percent to EUR0.1090 after a 2.7 percent green light on the eve.

Among SMEs, Comer Industries, which moves ahead 3.6% after three sessions on the bearish side.

Culti Milano, on the other hand, advances 3.2%, tinged green for sixth consecutive session.

At the back of the pack, H-Farm steps back 3.1 percent after a 1.7 percent loss on eve. The companny reported Tuesday in the evening that its board of directors resolved to redeem and extinguish all issued and subscribed participatory financial instruments totaling EUR8 million from Cattolica Assicurazioni shareholders and E-Farm Srl, Riccardo Donadon's investment vehicle.

Askoll Eva, on the other hand, gives up 6.0 percent to EUR0.4530. Trading volume on the stock is around 54,500, compared with a daily and three-month average of around 22,200.

In New York overnight Europe, the Dow Jones closed in the green by 0.6 percent, the S&P picked up 1.2 percent, and the Nasdaq took home 1.7 percent.

Among Asian exchanges, the Hang Seng is in the green by 0.2 percent, the Shanghai Composite is just below par, while the Nikkei closed in the green by 1.9 percent.

Among currencies, the euro changed hands at USD1.0952 versus USD1.0955 at Tuesday's European equity close. As released by the European Central Bank on Wednesday, the 12-month growth rate of the broad monetary aggregate M3 fell to 1.4 percent in May 2023 from 1.9 percent in April, averaging 1.9 percent in the three months to May.

The 12-month growth rate of the narrower M1 aggregate-which includes working capital and overnight deposits-was minus 6.4 percent in May, down from minus 5.2 percent in April.

The M2 monetary aggregate posted annual growth of 0.3 percent in May, up from 0.9 percent in April.

In contrast, the pound is worth USD1.2734 from USD1.2745 on Tuesday evening.

Among commodities, Brent crude is worth USD72.678 per barrel versus USD73.28 per barrel at Tuesday's close. Gold, on the other hand, trades at USD1,916.21 an ounce from USD1,915.12 an ounce Tuesday evening.

On Wednesday's calendar, at 1330 CEST, from the U.S., focus on the mortgage market report while, at 1530 CEST, there will be speeches by Ferome Powell of the Fed and Andrew Bailey of the Bank of England. At 1630 CEST, the crude oil stocks figure will be released, along with Cushing's inventory and EIA's weekly inventories. At 1700 CEST, it will be the turn of ECB President Christine Lagarde's speech.

By Maurizio Carta, Alliance News reporter

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