Indices down; Italian inflation at 5.7 percent in 2023

(Alliance News) - Mid-session Tuesday, the Mib and major European stock markets remain in negative territory following the release of inflation data for Italy and Germany.

Istat confirmed the preliminary estimate of the national consumer price index for December at 0.6 percent year-on-year, slowing from a plus 0.7 percent in the previous month and 11.6 percent in December 2022. In 2023, on average, consumer prices show a 5.7 percent growth versus an 8.1 percent increase in 2022.

Preliminary German figures were also confirmed: according to Destatis, the consumer price index rose 3.7 percent in December from a year earlier, an annual pace up from 3.2 percent in November.

Thus, the FTSE Mib is down 0.6 percent to 30,152.58, the Mid-Cap is down 0.3 percent to 44,148.13, the Small-Cap is down 0.6 percent to 27,525.37, and Italy Growth is down 0.3 percent to 8,212.35.

In Europe, Paris' CAC 40 is in the red 0.6 percent, London's FTSE 100 gives up 0.5 percent, and Frankfurt's DAX 40 is down 0.7 percent.

Among the day's other macros, the ZEW indicator of economic sentiment for the Eurozone fell 0.3 points to 22.7 in January, still beating market forecasts of 21.9.

In January, 37 percent of analysts surveyed expected economic conditions to improve, 48 percent to remain stable and about 15 percent to worsen.

Meanwhile, the indicator for the current economic situation rose 3.4 points to minus 59.3, and inflation expectations rose only 1.4 points to minus 56.8.

The indicator for Germany, on the other hand, rose another 2.4 points to 15.2 in January, exceeding market expectations of a positive reading of 12.

This is the highest reading since February, signaling an optimistic shift in economic expectations for Europe's largest economy, as more than half of respondents expect interest rate cuts by the ECB in the first half of the year.

On the Mib, the bullish are the minority. At the top is Monte dei Paschi di Siena, up 0.9 percent as Saipem menter Campari advances 0.6 percent.

BPER Banca is in the fractional green. The company together with the Gardant Group announced Monday that it has finalized a deal to form a strategic partnership to manage impaired loans owned by BPER and Banco di Sardegna Spa.

The partnership between the BPER Group and the Gardant Group is realized through the creation of a servicing platform 70 percent owned by Gardant Bridge Spa, a company of the Gardant Group, and 30 percent owned by BPER, and the signing of two servicing agreements related to the management and recovery of loans classified to both probable default and non-performing loans owned by BPER and BdS.

The value of the transaction will generate a total capital gain of about EUR150 million, before taxes, and will be booked in the first quarter of 2024.

Mediobanca advances 0.5 percent after opening slightly lower. On Monday it announced that it had successfully completed the placement of a new Tier 2 subordinated bond with a 10.25-year maturity - maturing in April 2034 - and a call option in April 2029, for a total amount of EUR300 million.

The bank was also awarded the Financial Advisor mandate by Antares Vision, which drops 16 percent on the Small-Cap. In detail, the mandate involves analyzing the financial situation of the Antares Vision group and supporting in identifying a strategy for its reorganization and optimization.

Saipem is in the green by 0.9 percent,after announcing that the Algerian Supreme Court has ruled in the criminal case initiated in December 2022 against the company in connection with its participation in a 2008 tender for competitive FEED studies related to the Rhourde Nouss QH project, confirming the company's acquittal.

Stellantis--in the red by 1.7 percent--reported Friday that its venture capital fund, Stellantis Ventures, announced its participation as a strategic investor in Tiamat, a French company that develops and commercializes sodium-ion battery technology.

Worse only Banco BPM, which closed down the list and gave 2.0 percent.

On the Mid-Cap, Iren gives up 1.9% after announcing Monday that it has issued an eight-and-a-half-year bond--its fifth green bond--of EUR500 million.

PharmaNutra's board of directors - in the green by 0.2% - approved the group's preliminary sales figures for fiscal year 2023 on Thursday, reporting consolidated net revenues of EUR100.2 million, up 21% from full-year 2022, when they were EUR82.7 million.

Reply -- up 0.6 percent -- reported Friday that its subsidiary Storm Reply, a company specializing in cloud computing services, has built an IoT cloud solution for Eurogate, a renowned container terminal company, to collect and analyze operational data from machinery and systems in the cloud.

Among the bullish, Seco is in the green by 2.5 percent and Saras rises 2.4 percent while d'Amico International Shipping advances 2.3 percent.

On the Small-Cap, Safilo Group gives up 1.9% after announcing Tuesday that it and Aeffe--up 1.3%--have proceeded with the early renewal of the global licensing agreement for the Moschino and Love Moschino eyewear collections until December 2033.

FNM rises 0.7% after announcing Monday that it has decided to take over 80% of Viridis Energia Spa from Lagi Energia 2006 Srl and HNF Spa, which hold 55.7% and 33.3%, respectively.

Openjobmetis - unchanged at EUR16.00 - on Monday announced that it had finalized the acquisition of 100 percent of Just On Business Spa and 100 percent of its subsidiary Deine Group Srl.

The agreed consideration is EUR29.7 million in cash, plus the signing of a 3-year non-compete agreement with the founding partners valued at EUR2.2 million in total.

Among SMEs, ESI rises 8.1 percent after announcing Monday that it has signed a contract with a leading multinational oil & gas company for the turnkey EPC construction of a new photovoltaic plant with a total capacity of 10 MWp in Piedmont.

The contract amount of approximately EUR5.7 million will be accrued in fiscal year 2024.

Also doing well were Solution Capital Management SIM, in the green by 8.1 percent, and UCapital24, which advanced 7.8 percent.

Saccheria F.lli Franceschetti is up 1.6 percent after announcing Tuesday that the board of directors reviewed operating revenues as of Dec. 31, in which they came in at EUR17.8 million from EUR23.2 million in the same period last year.

Omer rises 1.6 percent after announcing Monday that it has signed a contract with Hitachi Rail to supply furniture components and fairings for 40 Frecciarossa ETR 1000 trains commissioned by Trenitalia. The value of the contract, the amount of which was not disclosed, "will contribute to the backlog in a percentage within a range of 15 to 20 percent," the company specified in a note.

Among currencies, the euro changes hands at USD1.0913 against USD1.0947 recorded in Monday's European stock close, while the pound is worth USD1.2663 from USD1.2728 last night.

Brent crude is worth USD79.13 per barrel versus USD78.35 per barrel at Monday's close. Gold, meanwhile, trades at USD2,040.30 an ounce from USD2,054.59 an ounce on Monday night.

Tuesday's economic calendar includes, at 1430 CET, the Canadian inflation figure while at 1700 CET Waller of the Federal Reserve will speak and at 1430 CET, finally, there will be an auction of Treasury bonds with three- and six-month maturities.

By Chiara Bruschi, Alliance News reporter

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