(Alliance News) - European marketplaces Monday--according to the IG futures market--project an opening without a single direction, as attention shifts to the oil market and important macro data after a default on U.S. government debt was averted.
Saudi Arabia announced plans to cut oil production. This will reduce the amount of oil it sends to the global economy, taking a unilateral step to support the falling cost of crude after two previous production cuts by members of the OPEC+ alliance failed to boost prices.
The announcement of the Saudi cuts of one million barrels per day came Sunday after an OPEC meeting in Vienna.
Germany's trade surplus rose to EUR18.4 billion in April, up from a downwardly revised EUR14.9 billion in the previous month and exceeding market expectations of EUR16.0 billion. This is the largest trade surplus since January 2021.
On Monday's monetary policy projections in the CME Group platform's FedWatch Tool, using futures also based on the actual federal funds rate or EFFR, the confirmation of the rate at the June 14 meeting has a 78 percent probability for confirmation in the 500/525 bps range. In contrast, the 25 bps rise in the 525/550 bps target is priced at 22%.
Thus, the FTSE Mib, marks a rise of 85.00 points, after closing up 1.9 percent at 27,068.33 Friday evening.
In Europe, London's FTSE 100 is advancing 17.00 points, Paris' CAC 40 is giving up 2.70 points, and Frankfurt's DAX 40 is in the red by 12.00 points.
Among the smaller lists on Friday evening, the Mid-Cap rose 1.6 percent to 42,834.82, the Small-Cap rose 0.8 percent to 27,499.46, while Italy Growth gained 0.8 percent to 9,163.64.
In Milan on Friday, on the highest-capitalization list in Piazza Affari, Saipem did well, posting a plus 5.6 percent with price at EUR1.27 per share and taking the top spot.
Other oils also rose, with Tenaris gaining 3.6 percent, Eni up 2.8 percent and ERG up 1.4 percent.
Utilities were also up, with Italgas picking up 2.6 percent. The company on Thursday successfully concluded the launch of a new EUR500 million, fixed-rate bond issue maturing in June 2032, with an annual coupon of 4.125%, in implementation of the EMTN Program launched in 2016 and renewed by a board resolution on Sept. 15, 2022.
Moncler rose 4.0%. As noted in a ProiezioniDiBorsa focus Thursday regarding Moncler stock, "a buy signal has been triggered on this stock. A new bullish phase may be coming," the analyst team writes. "For this to happen, in fact, it is crucial that resistance in the EUR64.41 area is broken to the upside," the analysis on the stock concludes.
Intesa Sanpaolo - in the green by 1.9 percent - and Enel X, an Enel company - in the green by 1.5 percent - dedicated to the development of innovative energy efficiency solutions, signed an agreement on Thursday to encourage investments in energy from renewable sources and the consequent energy autonomy of companies and the country through a synergy aimed at incentivizing the creation of Renewable Energy Communities in the country.
In the red were Campari, down 0.1 percent, and Inwit, down 0.3 percent.
On the cadet segment, Maire Tecnimont--up 1.1 percent--announced Thursday that its subsidiary KT-Kinetics Technology, part of the Integrated E&C Solutions business unit, has been awarded preliminary engineering work for the construction of a new green fertilizer complex in North America by a group of private investors.
OVS--green by 1.0 percent--reported Thursday that it purchased 171,961 shares of its own common stock between May 25 and May 31. The shares were taken over at an average price per share of EUR2.5061, for a total value of about EUR431,000.
Iren--up 0.5 percent--reported Wednesday that its subsidiary Ireti Spa had taken over a 2.4 percent stake in AcquaEnna from Cogen Spa, thus rising to 50.9 percent of the latter's capital, which will now be consolidated.
AcquaEnna has been managing water service in all municipalities in the Province of Enna since 2004 following the awarding of a tender procedure that ensured that the service would be entrusted to the corporate structure established for the purpose until 2034. The operation, already envisaged in the business plan, has an expected Ebitda in 2023 of about EUR9 million.
Fincantieri climbed 1.4 percent after announcing Thursday that it and its subsidiary Vard signed a memorandum of understanding with Heddle Shipyards, Thales Canada and SH Defence at CANSEC 2023, Canada's largest defense exhibition, to enshrine the collaboration that will offer the Vigilance Class Offshore Patrol Vessel as part of the Canadian government's upcoming naval acquisition strategy to replace the Kingston Class.
Industrie De Nora gained 0.7 percent after announcing Thursday that it had received Roberto Cingolani's resignation from his position as independent non-executive director and member of the Strategy Committee, effective immediately, due to workload and incompatibility with his new position as CEO of Leonardo Spa.
On Small-Cap, KME Group -- up 1.0 percent -- on Thursday informed that, following the fulfillment of the conditions precedent stipulated in the agreement, KME SE, its main subsidiary, executed the agreement signed with Golden Dragon Precise Copper Tube Group Inc concerning the sale of its 50 percent stake in the KMD Holdings Limited joint venture and the purchase of 100 percent of the shares in KMD Connectors Stolberg GmbH. The execution of the transaction, as stipulated in the contract, resulted in the net proceeds of approximately USD53 million, of which approximately USD43 million related to the purchase and sale of the shareholdings and the payment of commercial positions, as well as USD10 million for the repayment of outstanding loans.
Mondo TV rose 0.9 percent after reporting Thursday that it has signed a distribution agreement with LEE Editorial for the distribution of the live action series "Action KidZ."
The exclusive worldwide distribution agreement runs for four years starting June 1 and provides for revenue sharing between the parties.
Among SMEs, Sciuker Frames flew 12 percent after announcing Thursday night that it had signed binding contracts to purchase the entire share capital of D&V Serramenti Srl and Diquigiovanni Srl.
Estrima--down 2.2 percent--reported Thursday that it had signed a major agreement with Top Mobile 5, a company based in Zagreb, Croatia and represented by Nikola Busljeta, for the sale, rental and distribution of Birò, the smallest four-wheeled electric vehicle, in Slovenia and Croatia.
After the first six Biròs supplied as proof of concept in February, now, the agreement includes an initial supply of 30 Biròs and a series of marketing initiatives to promote the brand in the Croatian and Slovenian markets.
The initiative is part of Estrima's growth and expansion strategy, which includes conquering new markets with high growth potential and opening new locations in Europe.
In New York on Friday night, the Dow rose 2.1 percent, the Nasdaq 1.1 percent, and the S&P 500 picked up 1.5 percent.
In Asia, the Nikkei closed up 2.1 percent, the Hang Seng is up 0.3 percent, while the Shanghai Composite is in the fractional red.
Among currencies, the euro changed hands at USD1.0703 versus USD1.0726 at Friday's European equities close. In contrast, the pound is worth USD1.2434 from USD1.2475 on Friday evening.
Among commodities, Brent crude is worth USD76.84 per barrel versus USD75.83 per barrel Friday night. Gold, on the other hand, trades at USD1,945.47 an ounce from USD1,981.55 an ounce on Wednesday night.
On Monday's macroeconomic calendar, between 0915 CEST and 1030 CEST come the purchasing managers' index and the composite PMI index for Spain, Italy, France, Germany, the Eurozone, and the UK.
At 1100 CEST it is the turn of the Eurozone producer price index.
Overseas, the composite PMI and purchasing managers' index for the United States is released at 1545 CEST.
Among companies listed on the Milan Stock Exchange, Lifestyle Group's results are expected.
By Maurizio Carta, Alliance News reporter
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