Stock markets mixed; Mib without momentum at 27,700

(Alliance News) - Major European stock markets open mixed on Tuesday on another day lackluster on the macroeconomic front but already punctuated by central bank decisions.

From Australia, of the Reserve Bank of Australia decided to raise interest rates by 25bp to 4.1 percent in June, while further rate hikes will depend on how domestic and foreign dynamics affect the inflation outlook.

The latest move brought total funding cost increases to 400 bp from May 2022. The board stressed that it will do what is necessary to bring inflation back to the target range of 2%-3% in a reasonable time frame.

In addition, Germany's producer price index for industrial products increased by 1.0% from May 2022.

Compared with the previous year, this is the smallest increase since the January 2021 increase of 0.9%. In April, the increase had been 4.1 percent.

On a monthly basis, however, the overall index decreased by 1.4 percent in May.

Back in Italy, the FTSE Mib is in fractional green at 27,761.74, the Mid-Cap is down 0.2% at 43,146.28, the Small-Cap is in the green by 0.1% at 27,444.68, and Italy Growth is in fractional green at 9,134.62.

In Europe, Paris' CAC 40 is down 0.2 percent, London's FTSE 100 is the only one in the black, up 0.1 percent, while Frankfurt's DAX gives up 0.4 percent.

On Piazza Affari's main basket, Telecom Italia takes the top spot and rises 2.5 percent, after it announced that the board of directors met on Monday to review, as part of the competitive process related to Netco, the two non-binding bids submitted, respectively, by the consortium formed by CdP Equity Spa and Macquarie Infrastructure and Real Assets (Europe) Limited, acting on behalf of a group of investment funds managed or advised by the Macquarie Group, and Kohlberg Kravis Roberts & Co LP, also known as KKR.

TIM's board of directors will complete its review of the bids on June 22.

Terna rises 0.7% after announcing Monday that a share buyback program will be launched on June 22, for a maximum outlay of EUR7 million and a total number of ordinary shares not exceeding 1.4 million, representing about 0.1% of the company's share capital.

Leonardo gains 0.4 percent after news that the NATO Support and Procurement Agency awarded Leonardo a contract to supply a new RAT 31 DL/M long-range air defense radar.

This is the first time since the 1990s that the NATO agency has purchased a complete radar system.

Mediobanca is in the green by 0.1 percent after announcing Monday that Compass, the group's consumer credit company, has signed an agreement to take over 100 percent of HeidiPay Switzerland from HeidiPay, a fast-growing Swiss financial company specializing in Buy Now Pay Later, with more than 400 commercial agreements with major distributors, luxury brands and technology operators, active in the territory.

On the Mid-Cap, Maire Tecnimont is down 0.1 percent after announcing Tuesday that its subsidiaries part of the Integrated E&C Solutions and Sustainable Technology Solutions business units have been awarded new contracts worth a total of about USD260 million from international clients mainly in Europe, Asia and South America.

In particular, KT-Kinetics Technology was awarded a contract in the IE&CS BU for a pre-treatment plant by PKN Orlen, a Polish multinational company operating in the field of fuel refining and sales mainly in Central Europe.

The project has a duration of 24 months.

Technogym loses 0.1 percent after reporting Monday that it has unveiled its medium-term profitable and sustainable growth targets.

Revenues are expected to grow at an average annual rate of about 10 percent due to the launch of new products, digital and AI solutions, entry into new markets, and growing interest in exercise protocols targeting health. Adjusted Ebitda margin is expected to grow between 40 and 70 basis points annually due to economies of scale, quality improvement, logistics optimization and supply chain control.

Fincantieri is flat after it signed a contract on Monday to build its second ultra-luxury cruise ship with Marc-Henry Cruise Holdings LTD, co-owner and operator of Four Seasons Yachts.

The order is worth more than EUR400 million and the ship will be delivered in 2026.

In 2022 Fincantieri won the order for the first unit of the class, which will be delivered in the fourth quarter of 2025.

Sesa rises 0.3 percent, after announcing Monday that it closed the year to April 30 with consolidated revenues and other income of about EUR2.9 million according to preliminary data, up 21 percent annually from EUR2.4 million as of April 30, 2022.

On the Small-Cap, Somec rises 0.3 percent. On Friday, it reported that its U.S. subsidiary Fabbrica was awarded a new contract for a 34-story building in New York City. The contract is valued at more than USD23 million and consists of the design, manufacture, and installation of more than 12,000 square meters of custom curtain walling intended for a new building that will rise on Ninth Avenue, an artery on Manhattan's West Side, a few blocks from Madison Square Garden and the Empire State Building.

algoWatt gives up 11 percent. The company announced Monday that it has approved its new business plan to 2025, consistent with the proposed updated financial maneuver announced earlier to the market and to "exit the current state of financial stress through the modification of the business model and a review of the company's strategic and financial objectives," as specified in a note.

The plan estimates value of production growth of 51 percent, with cumulative revenues of about EUR134 million, with interim revenue targets of about EUR18 million in 2023, EUR42 million in 2024 and EUR64 million in 2025.

Among SMEs, GEL does best of all and rises about 28 percent, while at the other end of the list is Fenix, which loses 16 percent.

Alfonsino gives up 1.5 percent after announcing on Monday that it has reached a collaboration agreement with SIDI Piccolo Srl, a historic family-owned business associated with the VéGé group and active in the large-scale retail sector under the Supermercati Piccolo banner, for quick home grocery delivery, further extending the scope of operations of the Groceries business unit.

The board of GO internet -- down 2.1 percent -- on Friday approved the new business plan 2023-2027 drafted in line and continuity with the previous plan approved on June 8, 2020. The plan forecast revenues between EUR15.5 million and EUR16.5 million, Ebitda between EUR2.5 million and EUR3.0 million, an Ebitda margin between 17 percent and 18 percent, and a negative Net Financial Position between EUR2.8 million and EUR2.0 million.

In Asia, the Nikkei closed in the green by 0.1 percent to 33,388.91, the Shanghai Composite gave up 0.5 percent to 3,240.36 and the Hang Seng dropped 1.6 percent to 19,600.93.

Among currencies, the euro changed hands at USD1.0932 against USD1.0924 in Monday's European equities close. In contrast, the pound is worth USD1.2798 from USD1.2799 last night.

Among commodities, Brent crude is worth USD76.40 per barrel versus USD76.41 per barrel at Monday's close. Gold, meanwhile, trades at USD1,964.55 an ounce from USD1,955.70 an ounce last night.

On Tuesday's macroeconomic calendar, at 1000 CEST, the Eurozone current account balance is due, one hour ahead of construction output.

From the U.S., at 1430 CEST, will come construction permits while, at 1745 CEST, a speech by Williams of the FOMC is scheduled.

Among the companies in the Piazza Affari, Avio's results are expected.

By Claudia Cavaliere, Alliance News reporter

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