(Alliance News) - European stock markets reversed the trend of a good start on Friday by veering into negative territory, with caution taking center stage due to signs of slowing growth and persistent inflation.
Traders are also divided on whether the ECB will propose an accommodative rate hike or opt for a hawkish pause when it meets next week. In addition, the latest set of U.S. economic data, which indicated a robust labor market and strong activity in the services sector, reinforce the view that the Federal Reserve may maintain a tight monetary policy for an extended period.
On the European economic data front, final data released on Friday confirmed that the German inflation rate stood at 6.1 percent in August, famously significantly exceeding the ECB's 2.0 percent target.
Thus, the FTSE Mib marks a decline of 0.9 percent to 27,892.50.
The Mid-Cap is giving up 0.7 percent to 41,059.45, the Small-Cap is in the red 0.2 percent to 26,638.34, and Italy Growth marks a red 0.4 percent to 8,732.14.
In Europe, Paris' CAC 40 is giving up 0.5 percent, Frankfurt's DAX 40 is marking minus 0.7 percent, and London's FTSE 100 is contracting 0.3 percent.
On the Mib, Saipem confirmed its good start, advancing 0.8 percent. The company reported that it has been awarded two new contracts for offshore activities in the Ivory Coast and Italy, worth a total of EUR850 million.
Good buys also on Iveco Group, which advances 0.6 percent with new price at EUR8.88 per share after two sessions at a loss.
In red, the list's dominant color, FinecoBank, on the other hand, gives up 1.9 percent, following up on the previous three bearish sessions. The company posted robust net inflows of EUR648 million in August from EUR343 million a year ago, confirming the acceleration of the bank's growth path thanks to both new customer acquisition and a solid push into investments. The asset mix sees the managed component positive by EUR157 million, about half of which refers to Fineco Asset Management's retail inflows, which once again demonstrates its ability to intercept outflows from insurance, limited in August to a contraction of EUR95 million.
Rear-ends also for CNH Industrial, which marks minus 2.0 percent, in its third bearish session.
Eni--down 1.3%--announced that it has successfully placed an offering with a total face value of EUR1 billion of senior unsecured sustainability-linked convertible bonds. The bonds will be convertible into Eni ordinary shares purchased under the share buyback plan approved at the May 10 Shareholders' Meeting.
On the cadet segment, Industrie De Nora is advancing well, picking up 1.7 percent to EUR17.78 per share after two sessions among the bearish.
SOL, on the other hand, advances 0.4 percent after reporting a first-half net profit of EUR79.6 million from EUR64.7 million as of June 30, 2022. Consolidated revenue for the period amounted to EUR735.7 million, up 12 percent from June 30 last year when it was EUR658.2 million.
Listing tail for GVS, which marks a minus 3.8 percent on its fourth seuta on the bearish side.
Alerion, on the other hand, depreciates 3.4 percent, after 1.3 percent green on eve.
Webuild--up 0.3 percent in the letter--reported Thursday that it continues to grow in Australia and expand into segments new to the group. Australian subsidiary Clough won the AUD420 million contract to build the Shiplift at the Port of Darwin on Australia's north coast.
On the Small-Cap, boost on Olidata, which continues the bullish trend that sees the stock in its third session of positive direction if confirmed at the close.
Gas Plus, on the other hand, brings the price to EUR2.80, with the positive balance after the bell marking 2.6 percent.
In the rear, among others, Eurotech gives up 8.1 percent. The board of directors reviewed and approved the results for the first six months, a period that ended with a net result of a loss of EUR940,000, compared with a negative EUR4.26 million for the first six months of 2022. Revenues for the first six months of 2023 stood at EUR47.9 million compared to EUR34.74 million in the first six months of 2022.
Neodecortech, on the other hand, is declining 6.3 percent to EUR2.97 after falling 3.4 percent in the eve.
Among SMEs, Intred is advancing 1.8 percent with price at EUR11.65, while Finanza.Tech is marking a plus 1.3 percent at EUR0.74 per share.
Among the negative notes, Deodato.Gallery takes a step back by giving up 6.0% and positioning its snout toward the sixth session among the bearish.
Doxee is giving up 5.1%, positioning itself for the third session to close on the bearish side.
Among U.S. exchanges on the European night, the Dow Jones closed in the green by 0.2 percent, the S&P down 0.3 percent, and the Nasdaq finished down 0.9 percent.
Among currencies, the euro changed hands at USD1.0704 versus USD1.0706 on Thursday's European equities close, while the pound was worth USD1.2484 from USD1.2485 on Thursday night.
Among commodities, Brent crude is worth USD90.49 per barrel versus USD90.50 per barrel at Thursday's close. Gold, on the other hand, trades at USD1,925.58 an ounce from USD1,919.87 an ounce on Thursday evening.
On Friday's economic calendar, from the US, at 1600 CEST comes wholesale sales data and at 1900 CEST the Baker Hughes plants report.
At 2230 CEST, as usual on Friday, the COT report will be released.
By Maurizio Carta, Alliance News reporter
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