Europeans expected up; Brent crude over USD90 mark

(Alliance News) - The major European stock exchanges are expected to open higher on Monday morning at the start of an important week from the perspective of macro economic data and, as far as Piazza Affari is concerned, also that of the release of several half-yearly reports.

"This week, data on U.S. inflation will give the dollar a new, hopefully soft direction," commented Ipek Ozkardeskaya, Senior Analyst at Swissquote Bank. "The Fed has raised rates by more than 500 bp and reduced its balance sheet by USD1 trillion, keeping GDP around 2 percent, while inflation has declined significantly from its peak of 9 percent last summer to around 3 percent this summer. But crude oil fell more than 40 percent between last summer and the spring of this year, and prices have risen nearly 30 percent since then. The Fed is likely to hold its fire when it meets this month, but nothing is less certain for the November meeting. This week's inflation data will be crucial to November expectations."

"As for the European Central Bank," the analyst continues, "the baseline scenario is that there will be no rate hike at this week's monetary policy meeting, but European policymakers could announce a 25 bp hike despite the latest weakness in economic data.

Thus, the FTSE Mib is expected to rise 0.4 percent after closing up 0.3 percent at 28,233.20.

In Europe, London's FTSE 100 is given in the green by 0.3 percent, the CAC 40 is expected up 0.5 percent and Frankfurt's DAX 40 is expected to open up 0.3 percent.

Among Italy's smaller listings on Friday evening, the Mid-Cap closed down 0.1 percent to 41,306.40, the Small-Cap in the green 0.1 percent to 26,718.66, and Italy Growth down 0.1 percent to 8,756.34.

On the main index in Piazza Affari, Saipem closed on top with a 4.9 percent gain. The company reported that it was awarded two new contracts for offshore assets in the Ivory Coast and Italy, worth a total of EUR850 million. Also of note, Capital Fund Management raised its short position on Saipem to 1.12% from 1.0%.

Banca Generali -- up 0.2% -- reported Friday that net inflows for August were EUR247 million, up 20% from the same period last year. Since the beginning of the year, inflows stand at EUR3.9 billion.

BPER Banca closed in the green by 0.8 percent after it informed Thursday that the board of directors appointed deputy general manager Gian Luca Santi as chief financial officer.

Azimut Holding gained 0.2 percent after it announced Thursday that it recorded positive net inflows of EUR529 million in August, reaching EUR4.8 billion since the beginning of the year, with a full-year target of EUR6-8 billion.

In August alone, 92 percent of net inflows were directed into asset management products.

Eni raised 0.4 percent, after announcing that it successfully placed an offering with a total face value of EUR1 billion of senior unsecured sustainability-linked convertible bonds.

Despite its August funding figures, FinecoBank ended on the bottom and gave up 1.8 percent. The company posted robust net inflows of EUR648 million in the month from EUR343 million a year ago, confirming the acceleration of the bank's growth trajectory thanks to both new customer acquisition and a solid push into investments.

On the Mid-Cap, ENAV rose 0.1 percent after it disclosed Friday that it has signed four new contracts through its subsidiaries IDS AirNav and Techno Sky to supply systems to optimize flight data and improve airspace efficiency, with India, Norway, Romania, and Kosovo.

The total amount is approximately EUR11 million.

Webuild closed up 0.3 percent after it reported Thursday that it will continue 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. The project involves the construction of a modern system for the lifting, ground handling and launching of small and large vessels, which will consolidate the coastal city's role as a major hub for ship maintenance and support services in the region.

LU-VE gave up 5.6 percent after reporting Thursday that it posted a first-half net profit of EUR19.1 million, down from EUR33.2 million in 2022.

Revenues amounted to EUR320.3 million, up from EUR318.4 million as of June 30, 2022.

Banca Ifis closed 0.7 percent in the red after it announced Wednesday of in the evening that it had completed the placement of a EUR300 million senior preferred bond issue aimed at institutional investors.

On the Small-Cap segment, the board of directors of Eurotech -- in the red by 8.0 percent -- reviewed and approved the results for the first six months, a period that ended with a net loss of EUR940,000, compared with a loss of 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.

Mondo TV -- up 1.6 percent -- on Friday announced that the purchase by Squirrel Media of the company's entire 74 percent stake in Mondo TV Studios has been completed.

As a result of this transaction, Mondo TV officially becomes a minority shareholder in the Spanish group.

Gas Plus gave up 1.8 percent after it reported Thursday that it reported a first-half net profit of EUR18.2 million from a loss of EUR6.9 million as of June 30, 2022.

Total revenues amounted to EUR90.8 million from EUR77.1 million in the first half of 2022.

Cellularline rose 5.2 percent after it reported data on Wednesday for the first half of the year, which ended with a net loss of EUR4 million, an improvement from that for EUR43 million as of June 30, 2022.

Sales revenue was EUR67.8 million, up from EUR54.6 million in the same period last year.

Among SMEs, Italian Wine Brands--down 1.1 percent--reported on Friday that it had begun a new share buyback program in execution of the resolution passed at its April 27 ordinary shareholders' meeting.

The purchases, the company specified in a note, will be for a maximum of 30,000 ordinary shares, with no indication of par value, for a maximum value set at EUR900,000.

Ecosuntek finished up 1.3 percent after announcing Friday that it reported first-half production value of EUR253.0 million from EUR286.3 million in the same period of 2022, down about 12 percent.

In Asia, the Nikkei is down 0.4 percent to 32,475.00, the Hang Seng gives up 0.9 percent to 17,992.50, and the Shanghai Composite rises 0.8 percent to 3,141.43.

In New York on Friday, the Dow closed up 0.2% at 34,576.59, the Nasdaq finished above par at 13,761.53 and the S&P 500 up 0.1% at 4,457.49.

Among currencies, the euro changed hands at USD1.0727 versus USD1.0712 in Friday's European equities close, while the pound was worth USD1.2512 instead, from USD1.2476 on Friday evening.

Among commodities, Brent crude is worth USD90.57 per barrel versus USD90.91 per barrel at Friday's close. Gold, on the other hand, trades at USD1,927.35 an ounce from USD1,945.15 an ounce Friday night.

On Monday's economic calendar, in Italy, at 1000 CEST it is the turn of industrial production and, at the same time, from China comes M2 Money Supply and new mortgage data.

From overseas, data on U.S. consumer inflation expectations arrive.

Among companies listed on Piazza Affari, results are expected from Antares Vision, Beghelli, Centrale del Latte d'Italia, Iniziative Bresciane, Italian Design Brands, Landi Renzo, Newlat Food and PharmaNutra.

By Chiara Bruschi, Alliance News reporter

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