(Alliance News) - Piazza Affari opens Thursday's session down, as expected, pending the release of consumer and business confidence data for Italy and the Eurozone.

For Commerzbank's You-Na Park-Heger, "today's GDP data from the U.S. and tomorrow's PCE deflator are unlikely to change the market's view that the U.S. central bank is likely to cut its benchmark rate in the second half of the year. The GDP data will likely confirm the picture of a solid economy, albeit with reduced momentum, so that the market is likely to feel confirmed in its belief that inflation and economic developments will justify imminent rate cuts."

Even surprisingly stronger data may not support the USD on a sustainable basis as it would likely take a series of positive data surprises, fueling concerns about inflation, to turn the market around, according to the analyst.

"In addition, the market will probably want to wait and see what the FOMC has to say as part of its rate decision next week, both on the near-term rate outlook and the medium-term outlook. As a result, USD investors are likely to remain cautious ahead of the meeting."

The FTSE Mib is down 0.3 percent at 27,040.77, the Mid-Cap is down 0.3 percent at 43,096.54, the Small-Cap is just below par at 28,927.68, and Italy Growth is up slightly at 9,222.50.

In Europe, London's FTSE 100 is just above unchanged at 7,854.72, Paris' CAC 40 gives up 0.2 percent to 7,451.09 and Frankfurt's DAX 40 is down 0.6 percent to 15,709.64.

On the main list in Piazza Affari, Tenaris gives up 1.7 percent, sunk by both the downward trend in crude oil prices and the uncertain outlook for the rest of the year announced by the company this morning as it released its first quarter results.

Tenaris ended the first quarter with net income more than doubling year-on-year to USD1.13 billion from USD503 million in the same period a year earlier. In the previous quarter, the last one in 2022, the figure was USD803 million. Earnings per share rose to USD0.96 from USD0.43 in the first quarter of 2022 while earnings per ADS increased to USD1.91 from USD0.85 as of March 31, 2022.

Net sales rose 75 percent year-on-year to USD4.14 billion from USD2.37 billion and 14 percent quarter-on-quarter from USD3.62 billion.

"Following our record results in the first quarter, we expect sales and margins to remain at good levels but show gradual and sequential declines over the remainder of the year. While sales in the Eastern Hemisphere are expected to consolidate above first-quarter levels, sales in the Americas will be impacted by lower prices and the marginal reduction in drilling activity in the U.S.," Tenaris' board explained.

The other oil biggies, Eni and Saipem, dropped 0.7 percent and 0.1 percent, respectively.

Also hurting was the other blue chip that released its quarterly accounts this morning, STMicroelectronics, down 3.7 percent, despite the semiconductor company reporting sharp year-over-year increases in earnings and revenues in the first quarter, with net income improving 40 percent to USD1.04 billion from USD747 million in the same period a year earlier.

On a quarterly basis, however, net income marks a 16 percent decline from USD1.25 billion in the last three months of 2022. Earnings per share rose 39 percent year-on-year to USD1.10 from USD0.79, but fell 17 percent quarter-on-quarter from USD1.32.

Net revenues rose 20% year-on-year to USD4.25 billion from USD3.55 billion in the first quarter of 2022 and USD4.42 billion in the last three-month period of 2022.

The company's guidance for the second quarter of 2023, at interim values, is for expected net revenues of USD4.28 billion, representing an increase of 0.8 percent on a quarterly basis, plus or minus 350 basis points, and a gross margin of 49.0 percent, plus or minus 200 basis points. This forecast is based on an assumed effective exchange rate of about USD1.08 per euro for the second quarter and includes the impact of existing hedging contracts.

Recovering from recent weakness, banks almost all rise as Thursday's bell rang, with UniCredit gaining 0.5 percent after announcing that, with respect to the non-cumulative temporary write-down deeply subordinated fixed rate resettable notes of UER1.25 billion, it will proceed with full early redemption on Jan. 3 of this year, after obtaining approval from the European Central Bank.

The early redemption of the bonds will take place at par along with accrued and unpaid interest. Interest will cease to accrue on the same date of early redemption.

"UniCredit has a limited need for TLAC/MREL funding for the remaining part of the year and no need to issue AT1 instruments in the near future. UniCredit's funding is well diversified both by funding sources and geography," the bank explained

On the Mid-Cap, PharmaNutra, the best stock at the start, rises again, thanks to an increase of 1.8 percent, followed by industrials: Carel rises 1.3 percent and De Nora puts up 0.7 percent, slightly higher than the 0.6 percent rise recorded by Sanlorenzo.

Still bad is Juventus, the worst opening stock, which in addition to news of possible exclusion from the European cups for next season at the hands of UEFA, also pays the price of elimination in last night's Coppa Italia semifinal. The stock gives up 2.2 percent at the start.

In the wake of declines in oil blue chips, Saras drops 1.8 percent and records one of the worst performances in the basket.

Among the small-cap companies in Piazza Affari, Greenthesis rises 1.6 percent on the day after announcing that the temporary grouping of companies in which it participates as the lead company with a 30 percent stake has won the contract for emergency safety works on the area of the former Enel thermoelectric power plant in Torre del Sale, in the municipality of Piombino.

The total amount of the works, aimed at the removal of dense fuel oil in soils, amounts to EUR20 million and the duration of the works was quantified at 29 months from the signing of the contract.

Unchanged Mittel's stock, which closed 2022 with a positive group net income of EUR700,000 from EUR600,000 in the previous year.

Consolidated revenues amounted to EUR210.2 million, up further from EUR201.6 million recorded as of December 31, 2021, thanks to the contribution of the industrial investees and in particular the Bathroom Furnishings companies, which contribute EUR75.7 million to the consolidated figure.

Finally, among SMEs, few stocks are still being traded, with Lindbergh being no exception despite the signing of a new contract between its subsidiary Lindbergh France and a leading French appliance company.

Services are expected to go live by September, and the contract will run until June 30, 2026. Depending on the expected volumes, a turnover of EUR1.5 million is expected throughout the contract term.

In contrast, Portobello falls, down 2.6 percent, after obtaining a EUR4.4 million loan from Banca Progetto. The deal is aimed at supporting Portobello's multi-year investment plan in the physical and online retail sector.

In Asia, the Nikkei closed Thursday up 0.2 percent to 28,457.68, the Shanghai Composite gained 0.7 percent to 3,285.88 and the Hang Seng rose 0.3 percent to 19,816.86.

In New York at Wednesday's close, the Dow Jones fell 0.7 percent to 33,301.87, the Nasdaq gaudagned 0.5 percent to 11,854.35 and the S&P 500 lost 0.4 percent to 4,055.99.

Among currencies, the euro changed hands at USD1.1047 versus USD1.1052 at Wednesday's close. In contrast, the pound is worth USD1.2469 from USD1.2486 on Wednesday evening.

Among commodities, Brent crude is worth USD78.02 per barrel versus USD80.75 per barrel on Wednesday evening. Gold, on the other hand, trades at USD2,000.13 an ounce from USD1,994.05 an ounce at Wednesday's close.

Thursday's macroeconomic calendar includes, at 1000 CEST, the release of Italian business confidence data while, at 1100 CEST, the same data will come for the Eurozone. At 1100 CEST, an auction of five- and 10-year BTPs will be held.

From the US, at 1430 CEST, eyes on Gross Domestic Product and unemployment claims data. At 1815 CEST, a speech by Panetta of the ECB is scheduled.

Among companies in the Piazza Affari, results from Elica, Eni, Franchi Umberto Marmi, Next Re and TraWell are expected.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

Comments and questions to redazione@alliancenews.com

Copyright 2023 Alliance News IS Italian Service Ltd. All rights reserved.