Mib gives up 2 percent; Leonardo at tail end

(Alliance News) - European stock markets Monday -- with Milan tailing off at 26,600 points -- confirmed the bearish trend seen in the futures market, with trading rooms closely monitoring developments in negotiations between the U.S. govenrnment and the Republican opposition over the debt ceiling.

Traders also weigh higher-than-expected inflation data from the U.K. and await the release of minutes from the recent Federal Reserve meeting.

On Wednesday 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 68 percent for confirmation in the 500/525 bps range. In contrast, the 25 bps hike in the 525/550 bps target is priced at 32 percent.

Thus, the FTSE Mib has a bearish reading of 2.0% at 26,640.58.

London's FTSE 100 is giving up 1.3 percent, Paris' CAC 40 1.4 percent, and Frankfurt's DAX 40 is marking minus 1.3 percent.

Among the smaller Milanese lists, the Mid-Cap is down 1.7 percent to 42,031.48, the Small-Cap is giving up 1.0 percent to 27,710.51, while Italy Growth is giving up 0.3 percent to 9,128.39.

On the main list of Piazza Affari, Leonardo is giving up 4.7 percent with price at ER10.49. Goldman Sachs cut its target price on the stock to EUR12.00 from EUR11.70.

Pirelli, on the other hand, is giving up 2.2 percent to EUR4.72,on the heels of eve's 1.3 percent red.

Interpump is instead flexing 2.5 percent,heading for the third session to end on the bearish side.

Green for Mediobanca,which is rallying 2.6 percent at EUR10.45 per share. The board of Mediobanca Spa on Wednesday announced that it had approved the guidelines of the 2023-26 plan. As silegge in the released note, "the group is setting challenging targets and confirming its ability to generate growth in profitable assets: total financial assets at ER115bn, up 11% andAUM/AUA at EUR85bn, up 13%. Also, loans to customers at EUR57bn, up 3%.

Also, growth in earnings with earnings per share up 15 percent in a range between EUR1.15 and EUR1.80, considering the cancellation of about 80 percent of the shares from the buyback plan with increasing contribution from WM and CIB and with lower but further growth in CF and NII, "confirming the high levels of profitability," the note says.

In the cadet segment, Reply contracted by 2.4 percent to EUR101.80, after eve's tentative gain of 0.2 percent.

MFE-MediaForEurope said Wednesday that its board of directors approved first-quarter results in which a consolidated profit of EUR10.1 million was reported from EUR2.7 million in the same period a year earlier. Ebit is positive EUR19.3 million from EUR15.3 million in the first quarter of 2022. Consolidated net revenues are EUR646.6 million from EUR654.3 million as of March 31, 2022. Class A shares give up 1.2 percent, while class B shares mark minus 2.2 percent.

Brunello Cucinelli, on the other hand, retreats 2.1 percent. The company announced Tuesday that it had reached an agreement with Chanel and the Cariaggi family to sell an 18.5 percent stake in Cariaggi Lanificio to Chanel. Brunello Cucinelli held 43 percent of Cariaggi Lanificio, and with the sale made today his stake becomes 24.5 percent.

Among the bullish few, Cembre is picking up 0.9 percent, after declining 1.8 percent on the eve of the sale.

On the Small-Cap, Zucchi is advancing 3.7%, rearing its head after two bearish sessions.

Alkemy, on the other hand, advances 1.7 percent to EUR11.90, heading for the fourth session to end on the bullish side.

Caleffi, on the other hand, gives up 3.7%,with the stock now at parity on the weekly frame.

Pierrel, likewise in the rear, retreats 3.3 percent after a 0.7 percent loss on the eve of the session.

Among SMEs, in a still uneventful list, Culti MIlano is stepping back 1.9% to EUR21.10 per share after two bullish sessions.

IDNTT, on the other hand, rises 1.8 percent to EUR3.38 per share.

Among the bearers is Casta Diva, which is giving up 4.8 percent to EUR1.20 per share.

In New York overnight Europe, the Dow gave up 0.7 percent the Nasdaq 1.3 percent, while the S&P 500 closed down 1.1 percent.

In Asia, the Nikkei closed down 0.9 percent, the Shanghai Composite down 1.3 percent, while the Hang Seng is contracting 1.9 percent.

Among currencies, the euro changed hands at USD1.0777 versus USD1.0778 at Tuesday's close. In contrast, the pound is worth USD1.2439 from USD1.2425 last night.

Among commodities, Brent crude is worth USD77.28 per barrel versus USD77.31 per barrel Tuesday night. Gold, on the other hand, trades at USD1,972.71 an ounce from USD1,966.95 an ounce last night.

On Wednesday's macroeconomic calendar, the European Central Bank's non-monetary policy summit is expected at 1000 CEST. An hour later comes German business expectations and the IFO index of German business confidence.

At 1300 CEST comes mortgage loan data from the United States.

At 1630 CEST it is the turn of oil stocks.

Among publicly traded companies, results from Assicurazioni Generali and Laboratorio Farmaceutico ERFO are expected.

By Maurizio Carta, Alliance News reporter

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