Oil stocks struggling on the Mib, banks do well.

(Alliance News) - Major European stock exchanges closed lower on Wednesday, and Piazza Affari was no exception with oil stocks still struggling on the Mib.

Thus, the FTSE Mib closed in the fractional red at 25,875.30.

Among the smaller listings, the Mid-Cap gives up 0.2 percent to 42,960.52, the Small-Cap closes in the red 0.7 percent to 29,565.91, and Italy Growth ends down 0.4 percent to 9,566.90.

In Europe, Paris' CAC 40 fell 0.1 percent, London's FTSE 100 gave up 0.2 percent, and Frankfurt's DAX 40 lost 0.1 percent.

"Although we have probably reached the peak of inflation, there is a risk that markets are too optimistic about the decline in inflation. As it stands, the decline in U.S. inflation is already hinting at disinflation by the end of the year, and markets are already pricing in the prospect of a rate cut by the end of the year," commented Michael Hewson, chief market analyst at CMC Markets.

"This could still happen, but it is fraught with risk as central banks have reached the end of their rate hike cycle and what will happen next, rate cuts or longer hikes?"

"For most of the past three years, central bankers have insisted that rising inflation would be transitory, even in the face of increasingly insistent warnings that it would not be. The low interest rate environment, together with the various fiscal stimulus programs implemented by governments and the supply chain disruptions caused by the Covid pandemic had already pushed inflation upward."

Meanwhile, at its first meeting of 2023, the Bank of Canada raised its overnight rate target by 25 bp to 4.5 percent, as markets expected, and signaled an end to its aggressive tightening cycle if economic developments evolve in line with the central bank's outlook.

The bank added that it is continuing its policy of quantitative tightening to complement its restrictive benchmark rate stance.

On the main list in Piazza Affari, Iveco Group came out on top and closed up 3.1 percent after announcing to the market on Wednesday that Iveco Bus has signed a framework agreement with Flanders public transport company De Lijn -- controlled by the government -- for the sale of an initial batch of 65 all-electric E-WAY city buses and additional batches up to a total of 500 vehicles.

Leonardo also did well, closing up 2.6 percent after words from Defense Minister Guido Crosetto at a parliamentary hearing. Italy will fight in Europe for defense spending not to be calculated in the Stability Pact, he said in essence, also because after aid to Ukraine "stocks must be restored."

Among the bullish minority are banking stocks such as Intesa Sanpaolo, Banco BPM, Mediobanca and UniCredit, all of which are between 0.6 percent and 0.2 percent higher.

Still suffering are oil stocks, with Saipem down 1.8 percent and Eni giving up 0.7 percent. Tenaris recovered late in the day and managed to close up 0.2%.

Oil prices tumbled Wednesday on the back of bad U.S. economic data that renewed fears about global growth prospects, raising new questions about the health of the energy market.

A barrel of Brent was quoted at USD85.91 Wednesday, down 2.7 percent from USD88.25 on Tuesday. West Texas Intermediate was trading at USD80.04 per barrel, 1.9 percent down from USD81.61.

Telecom Italia ends the day down 0.4 percent, after Vivendi's victory in Cassazione against Consob. The unified chambers ruled that the French group does not have de facto control, despite having a 24 percent stake in the telephone giant.

At this point, Vivendi can submit its own slate for TIM's board of directors without being forced to then consolidate the Italian company's maxi debt, which amounts to just under EUR25 billion, into its balance sheets.

On the Mid, Intercos outperforms everyone toward the close and ends the day up 3.1 percent. Brembo and Saras also do well, up 1.7% and 2.3%. Iren closes up 1.4% and Fincantieri ends up 1.3%.

Brunello Cucinelli picks up 0.1%. On Monday, the company announced that it bought back 7,242 of its own ordinary shares at an average price of EUR69.3792 for a total consideration of EUR502,444.08 during the period from January 16 to January 19, 2023.

On the Small, d'Amico International Shipping gives up 3.4 percent. The company announced Tuesday that its operating subsidiary d'Amico Tankers in Ireland has exercised its call option on the MT High Explorer, a 50,000-ton "medium-range" tanker, built in May 2018 at Onomichi Dockyard Co, Japan, for JPY4.1 billion -- equivalent to about USD30.0 million, at the forward contract exchange rate used to hedge the currency exposure -- and with estimated delivery in May 2023.

The best performer is Emak, which closes up 4.2 percent.

Among SMEs, Casasold closes up 8.4 percent after announcing Tuesday evening that it had finalized the acquisition of a 75 percent stake in Tweppy Srl from partners Marco Bettin and Alessandro Rossetto, with the latter retaining his operational role in the company by serving as CTO.

The consideration agreed upon for the acquisition is just under EUR1.8 million.

Grifal closes 1.7 percent in the red after announcing Wednesday that 2022 revenues rose to EUR37 million or 42 percent from EUR26.1 million a year earlier.

SG Company soars 41% while Rocket Sharing Company also ranks well, up 20%. In the last month Rocket Sharing Company has rallied 17% and in the last six months has posted 36% assets. The company was admitted to trading on February 24, 2022 with a placement price of EUR0.80 per share. It currently trades at around EUR0.64.

TraWell Co ends up 4.5 percent after winning, through its investee Care4Bag, the tender to provide its integrated traveler care services at Zagreb International Airport for six years plus one starting in the first quarter of this year.

Sebino - up 1.0 percent - announced that it has taken over the operating business of Eprom System, a long-standing company with its operational headquarters in Mapello and active in Italy for more than 30 years in the field of construction and maintenance of security systems and in particular video surveillance, access control, detection and anti-intrusion systems.

In New York, with stock exchanges trading in full swing, the Dow Jones is down 0.8 percent, the S&P is giving up 1.0 percent and the Nasdaq is in the red by 1.3 percent.

Among currencies, the euro changes hands at USD1.0892 versus USD1.0882 at Tuesday's close. In contrast, the pound is worth USD1.934.82 from USD1.2332 on Tuesday evening.

Among commodities, Brent crude is worth USD86.71 per barrel from USD86.62 per barrel Tuesday evening.

Gold, meanwhile, trades at USD1,934.82 an ounce from USD1,934.31 an ounce last session.

On Thursday's economic calendar, with China still closed for the Lunar New Year, we start with European macros. At 0900 CET, the Spanish unemployment rate is expected while at 1000 CET, business and consumer confidence data arrive from Italy.

At 1030 CET, in the UK, it is the turn of labor productivity.

In the afternoon, from the U.S., at 1430 CET comes GDP, along with durable goods orders, goods trade balance and unemployment claims.

At 1600 CET, also from the US, comes new home sales and the Fed KC manufacturing index.

Among companies in Piazza Affari, results from Aeffe, De' Longhi, STMicroelectronics, and Salvatore Ferragamo are expected.

By Chiara Bruschi, Alliance News reporter

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