Futures down slightly; wait for U.S. CPI

(Alliance News) - European stock exchanges are expected to open slightly lower Tuesday morning, according to IG futures, as they await the release of the latest U.S. inflation data this afternoon, which will give indications on the Fed's next monetary policy moves.

Thus, the FTSE Mib is expected to fall 0.1 percent or 45.0 points after closing in the green by 1.0 percent at 31,456.73.

In Europe, Paris' CAC 40 is expected to open in the red by 0.2 percent or 14.3 points, London's FTSE 100 is expected to be in the fractional red while Frankfurt's DAX 40 is given down 0.3 percent or 47.1 points.

"The week began on a positive note on this side of the Atlantic Ocean," comments Senior Analyst at Swissquote Bank, "and on a mixed note on the U.S. side. European equities bid better on Monday, fueled by luxury stocks such as LVMH, which added 14 points to the index after Hermes hit an all-time high last week thanks to strong quarterly results."

"All this is to say that the rally in European and U.S. equity markets is somewhat supported by a robust market reaction to encouraging corporate results. But some of it is supported by the rate outlook. And the rate outlook is making its way on slippery ground, with each Federal Reserve official adding his or her own dash of aggressiveness to the mix. Yesterday, Michelle Bowman of the Fed said that rates are in a good position to keep pressure on inflation and that there is no need to ease rates any time soon. Similarly, Thomas Barkin of the Richmond Fed said that rates are "getting closer to inflation," but that "they're not there yet," the analyst concluded.

Among Italy's smaller lists Monday evening, the Mid-Cap closed up 0.9 percent at 45,573.28, the Small-Cap picked up 1.1 percent to 27,520.12 while Italy Growth rose 0.5 percent to 8,123.28.

On the Mib, Saipem took the top spot on the list, up 5.9%, after 0.2% red on the eve.

Also doing well was Brunello Cucinelli, up 2.8%, in its eighth bullish session and priced at EUR103.40.

Good buys also on Iveco, which moved the price ahead 2.1% after 7.7% in the previous session.

Among the bearish Amplifon, in the red by 0.4 percent veered lower after five bullish sessions.

Also among the few bearish was Mediobanca, which closed down 0.4 percent in its sixth session among the bearish. The bank reported Thursday that it closed the first half of its 2023-2024 fiscal year with a net profit up 10 percent to EUR611.2 million from EUR555.5 million in the same period a year earlier.

On the cadet segment, Saras gives up 3.7 percent after announcing that Massimo Moratti Sapa's Angel Capital Management Spa and Stella Holding Spa and Vitol BV, a Dutch company, have entered into a sale and purchase agreement under which the Moratti family has agreed to sell shares in Saras representing about 35 percent of the company's share capital to Vitol at a price of EUR1.75 per share. The price per share implies a capitalization of Saras around EUR1.7 billion.

Unipolsai, on the other hand, gave up 2.2 percent to EUR2.42 per share after two sessions in the green.

Tod's rose about 18 percent after the company and L Catterton announced Saturday that the Italian listed company's majority shareholders-Dego and Andrea Della Valle through their vehicles-have signed a framework agreement with Crown Bidco for the latter to buy 11.9 million shares at EUR43.00 each, or 46 percent of the share capital, aimed at delisting from the Italian stock exchange. Crown Bidco's share capital is wholly owned by LC10 International AIV, a fund managed by affiliates of L Catterton Management, formed through a partnership between Catterton and LVMH.

Boost also on Salvatore Ferragamo, which brought the bar up 6.1 percent, following a 1.5 percent red finish in the previous session.

Anima Holding, on the other hand, rallied 4.1 percent, rearing its head after three bearish sessions at EUR4.21 per share.

Among smallcaps, Beewize rallied more than 11 percent with new price at EUR0.64 per share. Of note, over 140,000 pieces were traded on the stock compared to a three-month daily average of about 18,600.

Autostrade Meridionali, on the other hand, rallied 9.6 percent to EUR13.15 per share after two sessions closed in the red.

Piquadro gave up 0.5 percent, priced at EUR2.08 per share. The company reported Thursday that revenues for the first nine months rose to EUR131.5 million from EUR126.8 million in the same period a year earlier.

Banca Sistema left 0.5 percent at EUR1.20 per share on the parterre, in its third bearish session. The board of directors on Friday approved consolidated balance sheet schedules as of Dec. 31, which closed with a net profit of EUR16.5 million compared to EUR22.0 million in 2022. Net interest income of EUR67.0 million was down 22 percent year-on-year,

Among SMEs, GO Internet advanced 7.3 percent and bringing the price to EUR0.7696.

Comal -- in the green by 1.7 percent -- announced Monday that it has signed a contract worth about EUR27.5 million with a leading Italian energy company for the turnkey, EPC-M supply of a photovoltaic plant in southern Italy. The contract also includes the sale of the "SUN HUNTER" tracker, a proprietary product designed and manufactured by Comal in its Montalto di Castro factory.

Almawave -- up 2.7 percent -- let it know Monday that it has obtained "prestigious certifications related to the use of Artificial Intelligence" in healthcare, a sector "that requires strict compliance with authorities' standards." Almawave, over the past two years, has worked to obtain two prestigious certifications in the healthcare field-issued by the DNV certifying body-synonymous with authority and quality of offerings, it noted in a note.

Instead, Franchetti gave up 4.8 percent, with new price at EUR5.58 per share, in profit taking interrupting a long bullish trend.

E-Globe closed down 2.1 percent, after 3.3 percent green on eve.

In Asia, the Nikkei closed up 3.0 percent at 37,963.97 as markets in Hong Kong and Shanghai remained closed for Chinese New Year.

In New York, the Dow closed in the green by 0.3 percent at 38,797.38, the Nasdaq finished down 0.4 percent at 15,942.55, and the S&P 500 closed fractionally in the red at 5,021.84.

Among currencies, the euro changed hands at USD1.0776 versus USD1.0776 recorded at Monday's European stock close, while the pound was worth USD1.2647 from USD1.2628 on Monday evening.

Brent crude is worth USD82.35 per barrel versus USD81.73 per barrel at Monday's close. Gold, meanwhile, trades at USD2,024.43 an ounce from USD2,016.30 an ounce last night.

Tuesday's calendar includes at 1110 CET, from Italy, an auction of BTPs with maturities of three, five, seven, 15 and 30 years.

At 1430 CET, from the US, eyes on the consumer price index while at 2230 CET it will be the turn of weekly oil stocks.

In Piazza Affari, the accounts of AbitareIn, Arterra Bioscience, BasicNet, Elica, Riba Mundo Tecnologia and Unidata are expected.

By Chiara Bruschi, Alliance News reporter

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