Mib veers upward; banks act as locomotive

(Alliance News) - Milan's main index reversed course mid-session Monday, veering slightly upward around 27,800 Monday, supported mainly by banks. Trading rooms await more data from major European and U.S. economies later this week for further clues on future interest rate trends.

Concerns about the further development of the global economy have probably not diminished with the latest sentix economic index values. In fact, the Global Aggregate Index shows the fifth consecutive decline. The Eurozone is certainly making a particular contribution to this result: at minus 22.5 points, the Global Aggregate Index for the Eurozone fell to its lowest level since November 2022, marking the third consecutive decline and clearly missing Bloomberg analysts' estimates.

Meanwhile, weaker-than-expected Chinese inflation data -- with a flat year-over-year figure and monthly deflation -- intensified concerns about the health of the world's second-largest economy. More specifically, Chinese producer prices fell 5.4 percent year-on-year in June, a larger decline than the previous month's 4.6 percent drop and worse than market forecasts that estimated a 5.0 percent drop.

This was the ninth consecutive month of manufacturing deflation and the fastest decline since December 2015, amid weakening demand and moderating commodity prices.

Thus, the FTSE Mib marks a 0.4 percent rise to 27,883.04.

In Europe, London's FTSE 100 marks a bearish reading of 0.1 percent, Paris' CAC 40 is giving up 0.3 percent as is Frankfurt's DAX 40.

The Mid-Cap is rising 0.1% to 42,168.58, the Small-Cap in the green 0.1% to 26,725.33 while Italy Growth is in the green 0.1% to 9,050.18.

On the main index of Piazza Affari, good buying on BPER Banca, which marks a green of 2.5 percent with new price at EUR2.80.

JP Morgan cut FinecoBank's target price to EUR17.10 from EUR18.00. The stock trades in the green by 2.5 percent.

Banco BPM, on the other hand, advances 1.5 percent to EUR4.2820 after a 2.2 percent gain on the eve of trading. Of note, the bank announced Monday that Adolfo Pellegrino has joined the bank's management team as chief innovation officer as of the beginning of July.

Among the minority of bearish traders, Ferrari gives ground, which retreats 1.0 percent with new price at EUR285.40 per share.

Also in the rear ranks is Nexi, which marks minus 0.9 percent after a 1.7 percent gain on Friday night.

On the cadet segment, Reply gives up 1.3% after Friday night's 0.8% gain.

At the tail end is Carel Industries, which marks a minus 1.3% bringing the price to EUR26.85.

Maire Tecnimont--up 0.9 percent--reported Friday that between June 30 and July 6 it had purchased 551,200 of its own shares at a weighted average price of EUR3.575 and a total consideration of EUR1.9 million. With this transaction, the company has taken over all the shares to service the plan, which is, therefore, completed. In light of the purchases, the company now holds 1.2 million of its own shares.

Good purchases also on Saras, which advances with 2.2 percent to EUR1.2735 per share taking the top of the list.

Cembre, on the other hand, advances 1.7% to EUR30.20 per share, following Friday evening's 0.7% green.

On the SmallCap, boost on Pierrel, which advances more than 13%, positioning itself toward the fifth session to close on the bearish side.

Bioera - up 6.3% - equally ranks among the best, with new price at EUR0.11.

High quarters ancher for SoftLab, which marks a plus 5.3 percent and brings its price to EUR1.80 per share.

Finally, among SMEs, High Quality Food marks a plus 7.8 percent , with price at EUR1.24 and volume over 188,000 pieces traded, compared to an atre-month daily average of about 23,300.

Eles, on the other hand, rises 4.8 percent, on the heels of the previous two bullish sessions.

Friulchem, on the other hand, retreats 3.7 percent, in its fourth session on the bearish side.

Franchetti - equally at the back of the pack - marks instead a minus 3.4 percent, extending, if confirmed at the close, its six-session bearish trend.

In New York on Friday evening, the Dow gave up 0.5 percent, the Nasdaq closed 0.1 percent in the red, and the S&P 500 finished down 0.3 percent.

Among currencies, the euro changed hands at USD1.0945 against USD1.0949 on Friday in closing European equities, with divisions persisting within the Eurotower. Germany's Nagel reiterated his belief in the need for further interest rate hikes, while his Italian counterpart, Ignazio Visco, suggested that the ECB could achieve its inflation target by holding rates for a specific duration rather than continuing to raise them.

In contrast, the pound is worth USD1.2800 from USD1.2830 on Friday night, up about 6 percent since the beginning of the year.

Among commodities, Brent crude is worth USD77.94 per barrel compared to USD77.47 per barrel at Friday's close. Gold, on the other hand, trades at USD1,919.62 an ounce from USD1,935.50 an ounce Friday night.

On Monday's economic calendar, data on building permits are published at 1430 CEST in Canada, while at 1600 CEST it is the turn of U.S. wholesale trade sales.

Among companies listed on the Stock Exchange, no particular events are expected.

By Maurizio Carta, Alliance News reporter

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