Futures up; BoJ confirms rates

(Alliance News) - Major European indexes are expected to rise slightly Tuesday, according to IG Futures, on the heels of an upbeat session on Asian stock markets after rumors that Chinese authorities are considering a USD278 billion stimulus package to help stabilize the stock market.

Such decisions, Bloomberg writes, underscore the Chinese authorities' "high sense of urgency to stem a sell-off that drove the benchmark CSI 300 index to a five-year low this week. Calming the country's retail investors, many of whom have been affected by the prolonged property crisis, is also seen as crucial to maintaining social stability."

Thus, the FTSE Mib is expected to rise 32.5 points or 0.1 percent after closing red 0.3 percent at 30,182.32.

In Europe, Paris's CAC 40 is expected to open in the green by 24.8 points or 0.3 percent, London's FTSE 100 is expected up 20.4 points or 0.3 percent, while Frankfurt's DAX 40 is given up 37.0 points or 0.2 percent.

"While U.S. markets have been able to shrug off the prospect of a delay in possible rate cuts," comments Michael Hewson, Chief Market Analyst at CMC Markets, "European markets have struggled to accept the idea, probably due to the weakness of the underlying economy relative to the performance of the U.S. economy. There is a sense that the ECB is over-prioritizing the battle against rapidly falling inflation and not seeing the damage being done to the broader economy by keeping rates higher than necessary."

Today's decision by the Bank of Japan "held no surprises," as the central bank kept monetary policy unchanged amid a backdrop that has seen market expectations of rate cuts by other central banks rise sharply since the Fed's last meeting.

"This change in expectations has helped ease some of the pressure on the BoJ to consider tightening policy to slow the decline of its currency," Hewson pointed out.

The bank also cut its inflation forecast for this year from 2.8 percent to 2.4 percent, while pushing its forecast for 2025 slightly upward to 1.8 percent.

Among Italy's smaller listings on Monday, the Mid-Cap gained 1.2 percent to 44,518.45, the Small-Cap rose 0.6 percent to 27,314.02, and the Italy Growth closed up 0.8 percent to 8,302.95.

On the Mib, Nexi was confirmed in high quarters, closing in the green by 2.3 percent, after a 0.3 percent decline in the previous session.

High quarters also for Tenaris, which rallied 1.9 percent, after the previous session's 0.6 percent red.

STMicroelectronics closed up 2.6 percent -- best on the list -- in the week when results are expected to be released.

Amplifon rallied 1.0 percent, boosted by news of the acquisition of the business of one of Miracle-Ear's leading franchisees in the US. The acquired network, owned by three different companies -- Hearing Pro Inc,, Las Davis Enterprises Inc, and MiracleEar Centers of Arkansas LLC -- includes about 50 outlets located in four states, Arkansas, Kansas, Illinois, and Missouri, with annual sales of about USD20 million and about 85 employees. Miracle-Ear is the brand through which Amplifon operates in the U.S. retail market, through direct and franchise stores.

Ferrari fell badly, giving up 2.2 percent, following up Friday's decline, albeit by 0.1 percent.

A2A, on the other hand, gave up 1.2%, following Friday night's 1.1% gain.

On the cadet segment, Saras closed up 4.1 percent, following Friday night's 1.5 percent green. The stock, which closed with price at EUR1.74, the new 52-week high.

Technoprobe-best in the segment, on the other hand-gained 8.3% to EUR9.15, the new 52-week high.

Webuild closed in the green by 6.0 percent after announcing Sunday that it had signed, in a joint venture with Fomento de Construcciones y Contratas Canada, a contract with a total estimated value between about EUR700 million and EUR1.3 billion for the development and construction of the "Pape Tunnel and Underground Stations" section of the Ontario Line. The actual final value will be determined based on the executive design, which is included in the contract.

Credito Emiliano -- up 0.7 percent -- announced Monday that it has successfully completed the placement of promissory notes under Italian law, totaling EUR200 million.

Among the bearers, Juventus FC closed 5.9% in the red, after three bearish sessions.

LU-VE, on the other hand, left 2.5 percent on the parterre, in its fourth session on the bearish side.

Among smallcaps, Antares Vision gained 6.5 percent, closing for the third session in a row with a bullish candle.

High quarters also for Somec, which picked up 5.1 percent on the heels of the same 5.1 percent gain Friday night.

I Grandi Viaggi rose 1.7 percent after announcing Friday that its board of directors approved the draft financial statements ending Oct. 31, 2023, with an operating profit of EUR2.8 million from a loss of EUR140,000 in the same period last year.

Netweek, on the other hand, gave up 4.1 percent after a 4.4 percent profit on the eve of the meeting. The stock had previously come from seven bearish sessions.

Among SMEs, Energy closed up 16 percent, with price at EUR2.28, reversing a three-session bearish mini-trend.

First Capital -- in the green by 1.7 percent -- announced Monday that it had approved the group's reorganization project, "which will enable it to improve the operations and structure of its core business," a note said, through the transfer of holdings in listed companies to its subsidiary First SICAF Spa. The latter's shareholders' meeting also approved a EUR50 million capital increase.

Caribbean Company gave up 1.6 percent to EUR1.74 per share. The stock during the session hit a new 52-week low of EUR1.68 per share.

In Asia, the Nikkei closed in the red 0.1 percent to 36,517.57, the Hang Seng was in the green 2.7 percent to 15,362.00 and the Shanghai Composite closed up 0.5 percent to 2,770.98.

In New York on European night, the Dow closed in the green 0.4 percent to 38,001.81, the Nasdaq finished up 0.4 percent to 15,360.29 while the S&P 500 gained 0.2 percent to 4,850.43.

Among currencies, the euro changed hands at USD1.0914 against USD1.0888 recorded at Monday's European stock close, while the pound was worth USD1.2745 from USD1.2717 last night.

Brent crude is worth USD80.11 per barrel versus USD79.69 per barrel at Monday's close. Gold, meanwhile, trades at USD2,035.53 an ounce from USD2,023.57 an ounce last night.

Tuesday's macroeconomic calendar from the US includes an auction of one- and two-year Treasury bonds between 1730 CET and 1900 CET, while at 2230 CET it will be time for the release of the weekly oil stocks report.

No particular announcements are expected among the companies in the Piazza Affari.

By Chiara Bruschi, Alliance News reporter

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