(Alliance News) - Major European stock markets are expected to fall slightly by IG futures on Monday, while Asian indexes fell sharply this morning due to a sell-off in Chinese markets. Chinese real estate company Country Garden, in fact, has failed to make two bond payments and, if it fails to do so in the next 30 days, will risk default in September. The giant also warned of multibillion-dollar losses, exacerbating concerns about the nation's heavily indebted real estate sector.

"These statements, along with concerns about broader weakness in the Chinese economy, look set to translate into a weaker start for European markets," commented Michael Hewson, Chief Market Analyst at CMC Markets UK.

Among the few macros in the morning, Germany's Federal Statistical Office reported that wholesale prices in Germany fell 2.8 percent year-on-year in July, marking the fourth consecutive month of decline, following a 2.9 percent drop in the previous month.

Thus, the FTSE Mib is expected to fall 75.0 points or 0.3 percent after closing Friday 1.1 percent in the red at 28,274.74.

In Europe, London's FTSE 100 is expected down 9.8 points or 0.1 percent, Paris' CAC 40 is expected down 11.5 points or 0.2 percent, while Frankfurt's DAX 40 is expected to open in the red 20.0 points or 0.1 percent.

On Friday, the Mid-Cap gave up 0.6 percent to 41,903.02, the Small-Cap closed in the red 0.2 percent to 26,873.26, and Italy Growth lost 0.1 percent to 8,905.22.

On the main index in Piazza Affari, DiaSorin gave up 3.6 percent to EUR91.50 per share after two sessions closed positive.

Stellantis, on the back burner since the initial ringing of the bell, on the other hand, took a 3.4 percent step back after a 0.3 percent gain on the eve of the day. The stock had previously come from seven sessions down.

Iveco, on the other hand, left 2.5 percent on the parterre at EUR9.03 per share, in its third bearish session.

Unipol lost 1.2 percent after announcing Friday morning that it had approved consolidated results as of June 30 reporting a half-year closed with a consolidated profit of EUR517 million, down more than 24 percent from the consolidated net profit of EUR684 million in the corresponding period last year, reported under previous accounting standards and on which were reflected extraordinary items of some EUR279 million related to the pro-rata consolidation of BPER Banca's result. The figure for the first half of 2022, the company explains, restated for comparative purposes under the new standards, is EUR433 million.

Telecom Italia, on the other hand, gave up 0.1 percent as talks between the KKR fund and the Treasury to buy Netco intensified. As Francesco Bonazzi explains in Alliance News, "the important date in the handling of the dossier, until yesterday, was September 30, by which the KKR fund must submit its binding offer for the Telecom network. An offer ranging from EUR21 billion to EUR23 billion in value, depending on how certain assets shape up. But now all the spotlight is on the next meeting of the Council of Ministers, scheduled for August 28, when government work resumes after the summer break.

"Indiscretions not denied by the executive speak of a four-way agreement between the Ministry of Economy, Cassa Depositi e Prestiti (which has 10 percent of Telecom Italia), F2i and KKR. A formal step in Palazzo Chigi is obviously needed to make the Treasury's entry into the field official. Also at the end of August, in parallel, the U.S. fund is expected to sign credit lines with a pool of 10 banks - some of which are also TIM's creditors - for about EUR10.5 billion," the Alliance News columnist points out.

The top of the list took Saipem, up 6.6 percent, for the third session on the bullish front. Berenberg raised Saipem's target price to EUR2.90 from EUR1.90 with a 'buy' recommendation.

On the Mid-Cap, MutuiOnline fell 3.9 percent on the heels of eve's 6.0 percent red.

Tinexta stepped back 2.6%, following the 0.6% loss on eve.

Brunello Cucinelli, on the other hand, gave up 2.1%, veering downward after two sessions in the positive.

Strength on Salcef, which brings the bar forward 2.1 percent. Of note, the stock has increased its market value by about 40 percent since the beginning of the year.

Sesa, on the other hand, advanced 1.0 percent, beating the green of the eve closed with a plus 1.9 percent.

On the Small-Cap segment, Fidia advanced 4.1 percent, bringing the price to EUR1.28 after two bearish sessions.

Sabaf, on the other hand, advanced 3.7 percent, after 1.8 percent in the red on eve.

Esprinet, on the other hand, gave up 3.8 percent, after 2.1 percent green on eve.

Autostrade Meridionali also fell behind, posting minus 6.2 percent, the subject of profit taking after two sessions in which it accumulated assets of more than 16 percent.

Among SMEs, Iervolino & Lady Bacardi closed ahead with nearly 12 percent assets, up for the fourth consecutive session.

Innovatec advanced 4.6 percent, following eve's green with 1.7 percent.

Ecosuntek closed down 0.3 percent after reporting Wednesday in the evening that Eco Trade, a 63.4 percent subsidiary, signed two preliminary agreements on July 31 involving the purchase of the stakes held in + Energia Spa by Paolo Marinangeli for a 17.90 percent stake and by Soni Mar Srl for a 26.875 percent stake for a total share of about 45 percent. The purchase involves a total price of about EUR21.3 million to be paid at the closing, expected by the end of October 2023. A sum of just under EUR1.3 million was paid as a down payment on Wednesday.

Rear-ends also for Ecomembrane, which contracted 4.3 percent after three sessions in the green.

In New York on Friday, the Dow closed up 0.3 percent at 35,281.40, the Nasdaq fell 0.7 percent to 13,644.85 while the S&P 500 gave up 0.1 percent to 4,464.05.

In Asia, the Nikkei lost 1.3% to 32,059.91, the Shanghai Composite is in the red 0.5% to 3,175.00 and the Hang Seng is losing 2.1% to 18,680.60.

Among currencies, the euro changes hands at USD1.0934 against USD1.0955 on Friday's European equities close while the pound is instead worth USD1.2683 from USD1.2696 on Friday evening.

Among commodities, Brent crude is worth USD85.81 per barrel versus USD86.73 per barrel at Friday night's close. Gold, on the other hand, trades at USD1,912.86 an ounce from USD1,913.89 an ounce Friday night.

Monday's U.S. economic calendar features an auction of 3- and 6-month Treasury bonds in the evening.

On the corporate calendar, no events are scheduled.

By Chiara Bruschi, Alliance News reporter

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