(Alliance News) - Major European stock markets are expected to be close to parity Thursday morning, according to IG futures, in the aftermath of the release of U.S. inflation data that gave U.S. stock markets a nice boost.
The annual U.S. inflation rate fell to 3.0 percent in June, marking the 12th consecutive month of decline and the lowest figure since March 2021. June's figure compares with May's 4.0% and forecasts of 3.1%.
A rate hike on July 26, however, remains the most likely outcome. "Fed officials continue to think that 4.8 percent is still too hot and that the risk of a reversal in inflation expectations and inflation is still to be carefully managed. Because the favorable base effect due to energy prices will begin to fade in the coming months and the inflation outcome will be less palatable. The current increase in energy prices could then fuel price dynamics again in the coming months, and if China manages to fuel growth through broad monetary and fiscal stimulus, the impact on headline inflation could be felt," commented Ipek Ozkardeskaya, Senior Analyst at Swissquote Bank.
"Moreover, a potential Chinese boost to inflation looks much less threatening today than it did a couple of months ago. Chinese exports tumbled 12 percent in June, worse than the 7.5 percent drop in May and market forecasts of a 9.5 percent drop. June's drop in Chinese exports marked the steepest decline in sales since February 2020. Deteriorating foreign demand, due to high inflation and rising interest rates, continued to weigh on China's trade numbers. Meanwhile, imports fell 6.8 percent, the fourth consecutive month of decline due to persistent weakness in domestic demand," the analyst concluded.
The FTSE Mib is expected up 20.0 points or 0.1 percent after closing up 1.8 percent at 28,552.18.
In Europe, London's FTSE 100 is expected to be just above par, Paris' CAC 40 is expected to open up 5.7 points or 0.1 percent, and Frankfurt's DAX 40 is in fractional red.
Among Italy's smaller lists, the Mid-Cap gained 1.1 percent to 42,906.67 on Wednesday evening, the Small-Cap was up 0.2 percent to 26,755.55, and Italy Growth was up 0.2 percent to 9,090.28.
Banco BPM and FSI could create a second Italian digital payments hub if exclusive negotiations are successful. Nexi, which in turn was in the race for the Piazza Meda e-money, cushioned the blow in Piazza Affari after an initial lurch, rising 0.6 percent at the end of the session.
Banco BPM, up 2.3 percent, announced that it has granted exclusivity to a consortium formed by FSI SGR, Pay Holding and BCC Pay to manage the bank's e-money in partnership. According to rumors circulating, the offer from FSI would be around EUR600 million. There would be a cash payment and retention of a 30 percent stake in Banco BPM's hands, with Iccrea holding 30 percent and FSI holding 40 percent of the joint venture to be created.
The entire business would be valued at EUR2 billion, starting with the fact that digital payments fees in 2022 for Banco BPM recorded collections of EUR140 million.
Nexi, for its part, announced on Wednesday that it had signed a strategic partnership with Shopware, the leading open source eCommerce platform globally.
Under the agreement, Nexi will be able to better meet the needs of B2B merchants and specific vertical markets such as Pharma, Retail, and Furniture, helping them capture new business opportunities. The partnership also enables an omni-commerce suite.
Prysmian rose 3.3 percent after announcing that it has signed a service level agreement with German-Dutch transmission system operator TenneT to provide nearshore and offshore inspection, maintenance and repair services for submarine cables transmitting high-voltage AC and DC power in the North Sea.
Better than all did STMicroelectronics, up 4.8 percent, after Jefferies upgraded its recommendation on the stock to 'hold' from 'underperform,' with a target price increase to EUR46.00 per share from EUR33.00.
On the Mid-Cap, Maire Tecnimont rose 0.9 percent after its subsidiary NextChem Holding, through Stamicarbon, part of the Sustainable Technology Solutions business unit, won licensing and supply contracts for proprietary equipment for an ammonia and urea complex with a total value of about EUR100 million, representing Stamicarbon's most valuable acquisition in its history.
Tamburi Investment Partners fell 0.2 percent. The investment firm set up a club deal with some of Italy's leading family offices to buy an additional 20 percent stake in Investindesign, a company that holds an approximately 47 percent stake in Italian Design Brands, recently listed on Euronext Milan.
The purchase of the stake - for a total consideration of EUR28.4 million - will be made by Club Design, a company in which TIP itself has a 20% stake and other investors identified by TIP, at a price per share identical to that of the acquisition made in May by TIP.
On Salvatore Ferragamo, although Citigroup, Stifel and UBS cut the target price to TIP, which gained 1.4 percent at the end of the day.
Among small-cap companies, Piquadro lost 1.8 percent after reporting that it had suspended its buyback plan, coming in at just under 2.0 million treasury shares, or nearly 4.0 percent of its share capital.
Landi Renzo gained 1.8 percent. The soiety's board of directors co-opted Annalisa Stupenengo as the group's chief executive officer and also appointed her as general manager.
Exprivia - on a parity basis - announced that Abaco Innovazione has contributed 1.3 million shares of Exprivia, or 2.4 percent of the share capital, to Abaco3, of which it holds 100 percent, through subscription and full release of a paid capital increase. Exprivia shares were assigned a value of EUR1.522 equal to the weighted average closing price on Euronext Milan in the six months prior to the transfer.
TXT e-solutions lost 0.2 percent after signing an agreement to acquire assets belonging to the Embedded Graphics business of Presagis Canada, Presagis Europe and Presagis USA, subsidiaries of CAE, a leading Canadian Aerospace & Defense company. Completion of the transaction is subject to the fulfillment of certain anticipated conditions and is expected in the third quarter of 2023.
On the alternative capital market of Borsa Italiana, Renergetica - up 2.3 percent - formalized with E.ON Solar Energy Infrastructure Solutions Italy the sale of the special purpose vehicle Ren 181, holder of the single permit for the construction of a photovoltaic plant, with a capacity of about 3 MW in the municipality of Catania.
The board of directors of Franchetti -- down 1.4 percent -- announced Wednesday that it has been awarded new contracts worth EUR2.9 million in the second quarter of 2023.
Among the Asian exchanges, the Nikkei closed up 1.5 percent, the Shanghai Composite was in the green by 1.5 percent, while the Hang Seng marked a green by 2.5 percent.
In New York, the Dow closed up 0.3 percent to 34,347.43, the Nasdaq finished in the green 1.2 percent to 12,918.96 and the S&P 500 marked a plus 0.7 percent to 4,472.16.
Among currencies, the euro changed hands at USD1.1139 versus USD1.1121 in Wednesday's European equities close, while the pound was instead worth USD1.2999 from USD1.3000 on Wednesday evening.
Among commodities, Brent crude is worth USD80.31 per barrel versus USD80.12 per barrel at Wednesday's close. Gold, meanwhile, trades at USD1,958.68 an ounce from USD1,956.74 an ounce on Wednesday evening.
Thursday's macroeconomic calendar includes the release at 0845 CEST, of French inflation; at 1100 CEST, eyes on Eurozone industrial production and economic forecasts for the EU.
At 1330 CEST, the minutes of the latest European Central Bank meeting will be released, an hour before moving to the US, where data on unemployment benefit claims and the producer price index will be released. In the afternoon, focus on U.S. gas stocks and, in the evening, the Federal Reserve's balance sheet.
Among companies in Piazza Affari, the half-year accounts of Brunello Cucinelli and LU-VE are expected.
By Chiara Bruschi, Alliance News reporter
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