Europeans expected up; China reduces taxes on trade

(Alliance News) - On Monday, major European stock markets are expected to rise according to IG futures, on the eve of the release of U.S. data on JOLTS job openings -- which will mark the start of a busy week on the macro economic data front -- and after Christine Lagarde's statements in Jackson Hole.

On Friday, the ECB president spoke of a "new playbook" to be written to deal with the current situation: "We need and want to keep inflation at 2 percent over the medium term. This means that the ECB must keep interest rates at a sufficiently high level for as long as necessary," she said.

The Fed's Jerome Powell also left the door open to further interest rate hikes: "It is the Fed's job to bring inflation toward our 2 percent target, and we will do that. We have tightened policy significantly over the past year," he added.

Also of note, Chinese regulators have decided to reduce taxes paid on stock exchanges for the first time since 2008.

In a joint statement, the Ministry of Finance and the State Administration of Taxation said the move was designed to "reinvigorate the capital market and increase investor confidence."

Officials also said they would slow the pace of new listings, which usually suck up market liquidity.

Thus, the FTSE Mib is expected up 197.5 points or 0.7 percent after closing up 0.4 percent at 28,208.45.

In Europe, Paris' CAC 40 is expected up 59.3 points or 0.8 percent, while Frankfurt's DAX is expected up 106.6 points or 0.7 percent while London is closed for Bank Holiday.

Among Italy's smaller lists on Friday, Mid-Cap rose 0.1 percent to 41,061.69, Small-Cap gave up 0.1 percent to 26,777.17 and Italy Growth picked up 0.1 percent 8,845.78.

On the blue chip list, Iveco Group did best of all with a rise of 4.2%, with assets up over 55% since the start of 2023.

Good purchases were also made on UniCredit, with the Piazza Gae Aulenti stock bringing home a 1.4 percent gain, rearing its head again after two sessions ended among the declines.

Stellantis, on the other hand, rallied 1.1 percent, bringing its price to EUR16.72, following a 1.1 percent decline in the previous session.

STMicroelectronics, on the other hand, retreated 0.1 percent, closing for the third session in a row on the bearish side.

Rear-ends also for Banca Monte dei Paschi, which posted a minus 0.8% on its fourth session in negative balance and with weekly in the red by about 7.0%.

On the Mid-Cap, Zignago Vetro confirmed the bullish trend seen since the bell rang, closing up 2.6 percent in appreciation on the heels of eve's 0.1 percent green.

Alerion, on the other hand, picked up 3.1 percent, following Thursday's negative balance of 1.3 percent and doing better than anyone on the cadet list.

Salcef Group -- in the green by 1.5 percent -- reported Wednesday that its subsidiary Salcef won the tender called by ANAS -- of the FS Italiane group -- for the construction of one of the key projects for the Jubilee 2025 in Rome. Specifically, the project involves the burying of the existing road system in Piazza Pia through the extension by about 130 meters of the existing underpass built as part of the Jubilee 2000 works.

Thanks to this intervention, a continuous pedestrian path will materialize between the area in front of Castel Sant'Angelo and Via della Conciliazione, resulting in improved usability of a stretch now affected by intense vehicular flow. The contract amount is about EUR35 million.

Tod's also did well, picking up 0.7 percent. The stock - which has been missing the ex-dividend since 2019 - marks a 24 percent rise since the start of 2023.

At the back of the pack, Industrie de Nora took a step back 0.9%, repricing to EUR17.31, on the heels of eve's 2.1% red.

Intercos, on the other hand, gave up 2.2%, in its seventh consecutive bearish session.

On the Small-Cap, high quarters for Itway, which moved ahead 4.4 percent. The company reported on Friday that its subsidiary 4Science continued its upward trend during the first half of the year, recording 117% order growth over the first half of 2022, reaching an order value of more than EUR1.2 million.

On the buy side also on Triboo, which advanced 4.2 percent, after a 1.4 percent decline on the eve.

Trevi Finanziaria Industriale also traded well, which with a 1.9 percent gain matched Thursday's green when it picked up a plus 7.4 percent.

On a negative note, Eems left 3.3 percent on the parterre, which follows a 3.2 percent drop in the previous session.

Also trailing was Zucchi, which posted minus 3.0 percent after a gain of 2.2 percent in the previous session.

Among the SMBs, Finanza.Tech advanced 4.0%, while Iervolino & Lady Bacardi posted a plus 1.7%.

Strength also on Ambromobiliare, which advanced more than 16 percent, in its fifth session closed on a bullish trend.

International Care Company--up 7.7 percent--reported Friday that Intesa Sanpaolo Vita had finalized its entry into the company's capital. The latter subscribed to a EUR500,507.70 reserved capital increase made through the issuance of 238,337 new ordinary shares of ICC at EUR2.10 each and took over 238,338 shares from shareholder FD Holding Spa.

ICC's stock thus closed up 7.7 percent at EUR1.68 per share, while Intesa Sanpaolo's stock--on the Mib--brought home a gain of 0.2 percent.

On a negative note, among others, ISCC Fintech gave up 3.7 percent, while Energy instead lost 3.4 percent, after 0.4 percent assets on the eve of the event. The latter had previously come from five bearish sessions.

In New York on Friday, the Dow Jones closed up 0.7 percent to 34,346.90, the S&P up 0.7 percent to 4,405.71, and the Nasdaq up 0.9 percent to 13,590.65.

In Asia, the Nikkei is up 1.7 percent, the Shanghai Composite advances 1.1 percent while the Hang Seng is up 1.2 percent.

Among currencies, the euro changes hands at USD1.0814 versus USD1.0787 in Friday's European equities close while the pound is instead worth USD1.2605 from USD1.2571 on Friday evening.

Among commodities, Brent crude is worth USD84.61 per barrel versus USD84.22 per barrel at Friday's close. Gold, on the other hand, trades at USD1,917.28 an ounce from USD1,909.42 an ounce Friday night.

On Monday's economic calendar, note that London will be closed for a Bank Holiday while, at 1000 CEST, Eurozone money supply data is due.

At 1630 CEST, eyes on the Dallas Fed's business index while, at 1730 CEST, an auction of three- and six-month Treasury bonds is scheduled. At 1900 CEST, however, it will be the turn of bonds with two- and five-year maturities.

In the Piazza Affari corporate calendar, however, no particular announcements are scheduled.

By Chiara Bruschi, Alliance News reporter

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