Mib down; MPS on fifth bullish session

(Alliance News) - European stock markets closed in a bearish trend on Wednesday, with trading rooms taking a cautious approach due to fears that central banks may keep interest rates higher for longer than expected.

Among the interesting data of the day, on the bond front, the German 10-year yield rose to 3 percent for the first time since 2011, while another important data point came from the US. In fact, as disclosed by the Mortgage Bankers Association, last week U.S. mortgage rates hit their highest level in nearly 23 years, while home loan applications plummeted to their lowest level since the mid-1990s, reflecting difficult housing market conditions.

In the week ended Sept. 29, the 30-year fixed-rate mortgage increased to 7.53 percent -- precisely the highest level since November 2000 -- marking the ninth consecutive week in which rates exceeded 7 percent.

Thus, the FTSE Mib closed 0.2 percent in the red at 27,435.59.

The Mid-Cap gave up 0.3 percent to 38,875.24, the Small-Cap in the red 1.1 percent to 25,178.13 while Italy Growth is down 0.5 percent to 8,130.23.

In Europe, Paris' CAC 40 closed just below par, Frankfurt's DAX 40 picked up 0.1 percent, while London's FTSE 100 gave up 0.8 percent.

On the main list of the Italian stock exchange, Monte dei Paschi rose again, posting a plus 4.6 percent to EUR2.59 per share, in its fifth bullish session.

Good buys also on Campari, which brings the bar up 2.8 percent after 0.6 percent green on eve.

On the bearish side, Tenaris, on the other hand, gave up 2.2 percent after a 0.7 percent gain on eve. Also reported on the stock was that Citadel Advisors cut its short position to 0.53 percent from 0.6 percent.

Pirelli gave up 1.1 percent after signs of Chinese disengagement. "Last September 29, the shareholders' agreement on a 5 percent stake in Pirelli shares held by Silk Road Fund and entered into with Sinochem expired. In total, Beijing's shareholders have 46 percent, but after the Italian government exercised its Golden Power, they have lost virtually all concrete power over Bicocca," as Alliance News columnist Francesco Bonazzi commented.

"At current prices, then, 9 percent of Silk Road Fund would be worth EUR400 million and 37 percent of Sinochem would be worth EUR1.65 billion. The Chinese, who are directly controlled by the state and the Communist Party, had entered Pirelli in 2015 by investing about EUR7 billion (including EUR4 billion in debt taken over). Marco Tronchetti Provera, who has always maintained the lead despite the fact that his Camfin had just 14 percent, with Beijing's capital was able to repay a large part of the debt with Italian banks and prevent Pirelli from being taken over by locust funds."

Eni--up 1.6 percent in letters--reported Wednesday that it had purchased 4.6 million of its own ordinary shares between Sept. 25 and 29, for a total value of EUR71.0 million.

On the Mid-Cap, good trades for Caltagirone, which rose 2.9% bringing the price to EUR3.89 per share.

Among the bullish, minority also on this list is Reply, which closed ahead 2.3 percent after a 2.3 percent red on the eve.

Iren - down 0.8 percent - announced Tuesday that it had finalized with Granda Energie #3 Srl and through its subsidiary Iren Green Generation, the acquisition of 100 percent of the special purpose vehicle WFL Srl. The value of the 100 percent stake acquired by Iren is EUR2.2 million in addition to the repayment of the shareholder loan made by Granda Energie #3 to WFL for the realization of the investment.

Seco, on the other hand, gave up 3.7 percent, reversing course after four sessions closed with a bullish candle.

Industrie de Nora, on the other hand, left 5.8% on the parterre, on the heels of the eve's red closed with minus 1.3%.

On the Small-Cap, Netweek gave up 1.8 percent bringing the price to EUR0.28. The stock regiustrated high trading volume at 167,000 changed hands, compared with a three-month daily average of about 29,500.

algoWatt, on the other hand, dropped 2.1 percent after reporting Wednesday that it has been awarded a EUR255,000 grant for digital energy solution provider & system integrator activities on the ResilMesh project, funded under the Horizon Europe program.

In the ambitious context of holistic protection of critical infrastructures, the ResilMesh project will develop a set of innovative tools for the realization of a Security Orchestration and Analytics Platform Architecture - SOAPA based on the concept of cybesecurity awareness to improve the resilience of digital infrastructures through the achievement of various objectives.

CSP international, on the other hand, advanced 2.4 percent, after a 2.9 percent decline on Tuesday evening.

Safilo Group left 3.7 percent on the parterre, closing for the third session in a row on the bearish side. The company announced Friday that contracts have been signed for the sale of the business units related to the Longarone plant to sector companies Thélios and Innovatek. The closing of the transactions, subject to the fulfillment of conditions precedent, is scheduled for late October.

Among SMEs, Compagnia dei Caraibi moved ahead 6.8 percent to EUR3.60 per share, after a 0.3 percent loss on the eve of the meeting.

Good momentum also on Alfonsino, which marked a plus 2.8%, after the 7.0% liability with which it closed Tuesday evening.

Impianti - down 3.8 percent - announced Wednesday that it has signed a partnership agreement with the American company Verkada, which specializes in programming fully integrated hardware and software security systems. Through this collaboration," reads the released note, "Impianti and Verkada will be able to offer companies, particularly multi-location companies, integrated, scalable and innovative security solutions for work environments.

Sales also prevail on Bellini Nautica, among others, which trades minus 2.6 percent with new price at EUR1.87 per share.

In New York, the Dow is rallying 0.2 percent, the Nasdaq is up 1.0 percent, and the S&P 500 is in the green by 0.5 percent.

Among currencies, the euro changes hands at USD1.0519 against USD1.0453 recorded in Tuesday's European stock close while the pound is instead worth USD1.2150 from USD1.2066 on Tuesday evening.

Among commodities, Brent crude is worth USD87.15 per barrel from USD90.86 per barrel at Tuesday's close. Gold, on the other hand, trades at USD1,824.63 an ounce from USD1,832.31 an ounce Tuesday evening.

On Thursday's macroeconomic calendar, Germany's trade balance is due at 0800 CEST, and at 0930 CEST the construction PMI from Italy, UK, Germany and the Eurozone.

From the US, at 1430 CEST, initial unemployment claims and the trade balance. Note that during the afternoon FOMC members Barkin and Daly will speak between 1730 CEST and 1800 CEST.

On the corporate calendar, no special appointments are scheduled.

By Maurizio Carta, Alliance News senior reporter

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