Futures bullish on Fed day

(Alliance News) - Piazza Affari -- in line with other European exchanges -- is expected to open higher on Wednesday, with trading rooms awaiting the Federal Reserve's decision in the evening after closely monitoring the latest inflation data from the UK.

UK consumer price inflation slowed to 6.7 percent in August from 6.8 percent the previous month, below the market consensus of 7.0 percent. This is the lowest rate since February 2022, mainly due to slowing food inflation and a decline in the cost of housing services. The core rate-which excludes energy and food-fell to 6.2 percent, the lowest rate since March and well below the forecast of 6.8 percent.

The Federal Open Market Committee, as mentioned, will announce its rate decision in the evening, followed by a press conference with Chairman Jerome Powell. According to the CME's FedWatch Tool, there is a 99 percent probability that the central bank will leave the federal funds rate range of 5.25 percent to 5.50 percent unchanged.

As a result, the market will focus on hints about possible future rate hikes, or even hints about when rates will be cut.

The FTSE Mib, thus, marks a 50.00 point rise, after closing in the green by 0.6 percent at 28,757.63 last night.

The Mid-Cap last night rose 0.1 percent to 40,659.68, the Small-Cap equally up 0.1 percent to 26,336.33, while Italy Growth gave up 0.6 percent to 8,575.22.

In Europe, London's FTSE 100 advanced 31.00 points, Paris' CAC 40 marked green by 23.00 points, and Frankfurt's DAX 40 advanced 58.00 points.

On the main list in Piazza Affari last night, Banca Monte dei Paschi di Siena closed in the lead with a 6.4 percent rise, followed by Telecom Italia and Banco BPM, up 3.2 percent and 2.5 percent, respectively.

Banca Mediolanum - up 0.5 percent - announced Tuesday that Gianluca Bosisio, current general manager of the Italian parent company, will serve as chief executive officer of its Spanish subsidiary Banco Mediolanum SA and Igor Garzesi, current chief executive officer of Banco Mediolanum SA, will assume the position of general manager of the Italian parent company - Banca Mediolanum, reporting directly to CEO Massimo Doris.

Assicurazioni Generali - in the green by 1.4 percent - announced Monday that rating agency Fitch has raised its rating on Generali's Insurance Financial Strength to 'A+' from 'A,' with a Stable outlook.

The agency also raised its Issuer Default Rating to 'A' from 'A-'.

Saipem advanced 0.7 percent after the start of trading in Vienna of the EUR500 million senior unsecured equity-linked bond maturing in 2029 issued last Sept. 11.

DiaSorin and Moncler hurt, down 5.0% and 0.4%. Of note, on Moncler's stock, RBC cut its target price to EUR62.00 from EUR64.00.

On the Mid-Cap, Credito Emiliano -- up 1.9% -- placed a new bond on Monday, aimed at institutional and professional investors, in the amount of EUR500 million. The issue, in the Senior Preferred format will go to support social sustainability activities and highlights the group's commitment to ESG, the company points out in a note. The transaction has garnered market interest with orders of around EUR1 billion, which is substantially twice the offering.

Webuild--declining 0.4 percent--reported Monday that it is planning a roadshow to present a possible fixed-rate senior bond to investors. Proceeds from the new bonds will be used to refinance part of the EUR500.0 million bonds due in October 2024 and EUR750.0 million due in December 2025.

Maire Tecnimont -- in the green by 0.3 percent -- on Monday announced that it is known that the Commission de Surveillance du Secteur Financier of the Grand Duchy of Luxembourg has approved the prospectus for the public offering of Maire bonds to 2028. Specifically, this is a non-convertible bond for up to EUR200 million, with a maturity of five years and a minimum fixed interest rate of 6 percent pa. The minimum denomination that can be subscribed is EUR1,000 and the issue price is 100 percent of par value.

On the Small-Cap, KME Group--down 0.4 percent--reported in the evening that the board of directors approved the half-year report as of June 30 reporting a consolidated profit of EUR21.2 million from EUR6.7 million in the same period last year. Revenues amounted to EUR1.07 billion from EUR1.03 billion in the same period last year. Net of raw materials, revenues rose 52 percent to EUR348.2 million from EUR229.0 million.

The board of directors of Aeffe -- in the red by 0.6 percent -- on Monday announced that the deed of merger by incorporation of its wholly owned subsidiary Moschino was signed today to take effect Oct. 1, 2023.

Itway gave up 1.6 percent. The company announced Monday that its subsidiary 4Science Spa, which is consolidated in Itway's financial statements and specializes in the Big Data, Digital Repositories and Data Management Systems market, reported first-half revenues at EUR1.7 million, up 37 percent from the same period in 2022 when they were EUR1.2 million, and Ebitda at EUR121,708 from EUR201,182 in the first half of 2022. However,the company posted a loss of EUR49,880, from a profit of EUR30,607 in the same period last year, pushed down by a 40 percent increase in personnel costs.

Among SMEs, Askoll EVA lost 4.8 percent after announcing on Monday that it had concluded a EUR100,000 deal with Città di Leonia cooperativa sociale to supply 35 electric scooters that will be deployed in the Neapolitan municipalities of San Giorgio a Cremano, Portici and Ercolano, in sharing mode, where Askoll EVA is landing for the first time.

Almawave gave up 0.6 percent after learning Tuesday that it, along with subsidiaries Almaviva Digitaltec and Digital Hub, has signed the "OncologIA" program contract with the Region of Puglia. It is, the company explained in a note, an industrial research and experimental development project, co-financed by the Puglia Region through the European Regional Development Fund, that applies innovative IT technologies in the medical oncology field.

Growens left 0.9 percent on the parterre. On Monday, it announced that it had reviewed and approved the consolidated half-yearly situation as of June 30, which closed with a decrease in revenues of just under 5 percent in the first half, to EUR35.6 million compared to the first half of 2022, when it was EUR37.4 million, "due to the contraction of revenues in the CPaaS division, in deference to the strategic line of focusing on margins," the company wrote in the released note.

In New York overnight Europe, the Dow closed down 0.3 percent, while the Nasdaq was down 0.2 percent as was the S&P 500.

Among Asian exchanges, the Hang Seng is giving up 0.3 percent as well as the Shanghai Composite, while the Nikkei marks minus 0.7 percent.

Among currencies, the euro changes hands at USD1.0690 versus USD1.0690 in Tuesday's European stock close, while the pound is worth USD1.2390 from USD1.2402 last night.

Among commodities, Brent crude is worth USD93.59 per barrel versus USD95.16 per barrel at Tuesday's close. Gold, meanwhile, trades at USD1,931.37 an ounce from USD1,934.41 an ounce last night.

Wednesday's macroeconomic calendar includes data on manufacturing in the Eurozone construction sector at 1100 CEST.

From the U.S., eyes will be on mortgages, whose data will arrive at 1300 CEST, and crude oil, with inventory numbers to be released at 1630 CEST. The day closes with the most anticipated moment, namely the Federal Reserve's decision on rates, which will be released at 2000 CEST, with a press conference by the chairman, Jerome Powell, to follow half an hour later.

Among the companies in the Piazza Affari whose accounts are expected to be released on Wednesday, worth mentioning are Mediobanca, OVS and Digital Magics, among others.

By maurizio Carta, Alliance News reporter

Comments and questions to [e-mail]

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