Futures bullish but caution still reigns

(Alliance News) - Futures signal a bullish opening for the third session of the week despite caution still reigning within the trading floors.

"European markets struggled to find direction yesterday, with upward pressure on short-term bond yields proving to be a slight drag on markets' ability to add to gains seen on Monday," said Michael Hewson of CMC Markets.

"There still seems to be a lot of caution when it comes to driving up prices, in the wake of last week's turmoil with rising yields also putting pressure on U.S. markets that struggled, with the Nasdaq feeling the effects of firmer rates."

Thus, the FTSE Mib, reports up 165.00 points, after closing last night in the green by 0.5 percent at 26,329.46.

In Europe, Paris's CAC 40 advances 39.50 points, London's FTSE 100 is up 12.80 points, and Frankfurt's DAX 40 marks a rise of 68.00 points.

Among the smaller listings on Tuesday, the Mid-Cap lost 0.1 percent to 42,251.35, the Small-Cap gave up 0.2 percent to 29,557.35, and Italy Growth finished just above par at 9,332.74.

On the Mib last night, good session for banks. Among them, UniCredit advanced 4.4% to EUR17.15. The Milanese bank announced Tuesday that the European Central Bank has authorized the EUR3.34 billion share buyback program. Now, the ball is in the shareholders' court, who will decide on March 31 whether to give the go-ahead to the program, which, if so, will be executed in two tranches of EUR2.34 billion and EUR1.0 billion, with the latter expected to start in the second half of 2023, shortly after the completion of the first tranche.

Intesa Sanpaolo -- up 1.0 percent -- reported Monday that it had purchased 128.2 million of its own ordinary shares between March 20 and March 24. The shares were taken over at an average price per share of EUR2.3054, for a total value of EUR295.6 million.

Tenaris, on the other hand, advanced 3.0 percent, following eve's green with 0.9 percent.

Eni closed well, picking up 1.9%. Worth mentioning that on the stock on Tuesday, ODDO BHF raised the fair value to EUR16.00 from EUR15.50.

DiaSorin rose 2.0 percent after announcing Monday that the board of directors approved 2022 results reporting a net profit of EUR240.1 million down from the EUR310.7 million recorded in 2021. In contrast, adjusted profit amounted to EUR318.7 million down from EUR356.9 million in 2021. The board approved, inotre, the proposed distribution of an ordinary dividend totaling EUR61.5 million, or EUR1.10 per share.

On the mostly bullish Mid-Cap, Carel Industries closed 4.2 percent ahead at EUR24.80 after two sessions ended among the bearish.

Danieli & C, on the other hand, rallied 1.5 percent on the heels of eve's green with 1.1 percent.

Juventus Football Club gave up 1.7 percent. On Friday, the company reviewed and approved the consolidated half-year financial report as of December 31, 2022 reporting revenues of EUR276.2 million up from EUR223.1 million in the same six-month period of 2021/2022. Loss amounted to EUR29.5 million down from a loss of EUR112.1 in the first half of last year.

Industrie De Nora, on the other hand, gave up 4.6 percent to EUR17.16 per share, placing it on the bearish side for the fourth consecutive session.

On the Small-Cap side, Pierrel marked a 3.3 percent rise, after two sessions ended in losses.

Borgosesia advanced 0.8%, pending the release of results due tomorrow.

Itway -- up 0.6 percent -- reported Monday that it closed 2022 with a net profit of EUR230,000 from EUR330,000, while value of production stood at EUR3.1 million from EUR2.4 million in the same period last year.

Among the biggest bearers was Bioera, which gave up 6.7 percent to EUR0.1540 touching a 52-week low.

Among SMEs, the board of Powersoft -- up 26 percent -- on Tuesday approved its consolidated financial statements as of December 31, 2022, which closed with a positive consolidated net profit of EUR6.3 million, up 181 percent from the EUR2.3 million profit recorded in fiscal year 2021 and accounting for 13 percent of sales.

The board of directors is proposing to the shareholders' meeting an ordinary dividend of EUR0.48 per share compared to EUR0.15 in the previous year. An extraordinary dividend - from the extraordinary reserve - of EUR0.34 per share will also be proposed.

Strong purchases were also made on Vimi Fasteners, which closed ahead 14 percent pending results due to be published on Wednesday.

Radici Pietro Industries & Brands gained 8.1 percent. Net income for 2022 is EUR187,000 positive and compares with a loss of EUR860,000 in the previous year. Revenues were EUR53.5 million, up 21 percent from EUR44.23 million as of Dec. 31, 2021.

Convergences closed in the red by 7.8 percent after reporting Monday that net income for 2022 was a negative EUR800,000 versus profit of EUR200,000. Revenues as of December 31, 2022 stood at EUR28.1 million, up 53 percent from EUR18.4 million at the end of 2021.

GO Internet, however, closed down 4.6 percent at EUR0.1650 and closing on the bearish side for the seventh time.

In New York on the European night, the Dow Jones closed in the red by 0.1 percent, the S&P gave up 0.2 percent while the Nasdaq closed in the red by 0.5 percent.

Among Asian exchanges, the Hang Seng is picking up 2.2 percent, the Nikkei gained 1.3 percent while the Shanghai Composite, about to close, is in the green by 0.1 percent.

Among currencies, the euro changed hands at USD1.0831 versus USD1.0845 at Tuesday's close. In contrast, the pound is worth USD1.2320 from USD1.2345 on Tuesday evening.

Among commodities, Brent crude is worth USD78.97 per barrel versus USD79.02 per barrel Tuesday evening. Gold, meanwhile, trades at USD1,960.73 an ounce from USD1,967.25 an ounce at Tuesday's close.

On Wednesday's economic calendar, at 1000 CET, the Italian unemployment rate is due while, at 1110 CET, a 6- and 12-month BOT auction is scheduled.

At 1300 CET, from the US, eyes on the 30-year mortgage rate, at 1630 CET on crude oil stocks, the EIA refinery report and the Cushing inventory.

At 1900 CET, a seven-year US Treasury bond auction is scheduled.

On the corporate calendar, upcoming results numbers include those of Borgosesia, Buzzi Unicem, Comal, EdiliziAcrobatica, Health Italia, Poste Italiane, Racong Force, Technogym, and Websolute.

By Maurizio Carta, Alliance News reporter

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