(Alliance News) - European markets ended the day down on Wednesday, dragged along with U.S. markets by a wave of selling ahead of the latest Fed minutes to be released this evening.
"Friday's optimism is now a distant memory, and equities continue to lose ground following the return of U.S. markets from vacation," commented Chris Beauchamp, Chief Market Analyst at online trading platform IG. "As we enter the summer period, it appears that volatility will increase and price action will become much more two-way, especially when earnings season begins next week. Fears persist that tonight's Fed minutes will also paint a more hawkish picture, driving the dollar higher and further weakening stocks."
New orders for manufacturing goods in the U.S. in May also increased -- by 0.3 percent from the previous month -- at a pace below market expectations of a 0.8 percent advance, according to data released Wednesday by the U.S. Census Bureau.
Attention now turns to Friday's U.S. employment data, "which will likely reaffirm the strength of the U.S. economy and leave the door open for further rate hikes," the analyst concludes.
As a result, the FTSE Mib closed 0.6 percent in the red at 28,220.18, the Mid-Cap gave up 0.3 percent to 42,501.73, the Small-Cap lost 0.2 percent to 26,952.79, and Italy Growth finished down 0.1 percent to 9,057.60.
In Europe, London's FTSE 100 lost 1.0 percent, Paris' CAC 40 gave up 0.8 percent while Frankfurt's DAX 40 posted a minus 0.6 percent.
On the highest-capitalization list in Piazza Affari, Leonardo takes the top spot and leads the meager bullish segment with a plus 1.8% after the British government confirmed a GBP870 million five-year contract to BAE Systems and Leonardo UK - a subsidiary of Leonardo - to upgrade the radar capabilities of the RAF's Typhoon, equipping the fighter jets with one of the most advanced radars in the World, the European Common Radar System Mk2.
Following last year's announcement at the Royal International Air Tattoo of 2022, in which British Defense pledged to invest GBP2.35 billion for various Typhoon upgrades, this is the first contract awarded from that important and complex investment and will see the completion of the development and integration of the ECRS Mk2.
Saipem also did well, posting a 1.1 percent positive balance in its eighth session on the bullish side.
Prysmian Group - in the red by 1.0 percent - announced Wednesday that it has reached an important milestone with SP Transmission PLC and National Grid Electricity Transmission PLC, two of the owners of the electric transmission grid in the United Kingdom.
Enel-which ends in the red by 2.0%-announced Wednesday that Enel X Way and Saba Italia Spa, a leading operator specializing in the management of public parking lots, have entered into a partnership in Italy to offer electric drivers new charging opportunities with 51 charging infrastructures available in 17 parking lots managed by Saba Italia across the country.
Pirelli gives up 0.6 percent. On Tuesday it signed an agreement to acquire 100 percent of Hevea-Tec, Brazil's largest independent natural rubber processing operator.
The deal will take place for an enterprise value consideration of about EUR21 million, subject to adjustments at closing, which - subject to the fulfillment of certain conditions including the green light from the Antitrust Authority - is expected to take place by the end of 2023. The acquisition will have no impact on the target of about EUR2.35 billion projected for Pirelli's net financial position at the end of 2023.
Inwit -- in the green by 0.9 percent -- reported Tuesday that between June 26 and June 30 it bought 327,671 ordinary shares at an average price per share of EUR11.9231, for a total consideration of EUR3.9 million.
FinecoBank contracted 2.5 percent and ended at the bottom. Of note, on the stock Tuesday Marshall Wace raised its short position to 1.7 percent from 1.64 percent previously.
On the cadet segment, good buys on Brunello Cucinelli, which moves ahead 2.4% raising its head after two sessions among the bearish.
It does best of all Saras, which rises 10% and ends its fourth session on the bullish side. Saras reported Wednesday that Urion Holdings bought 10.0 million shares in the company, reaching 13.52 percent of the Moratti company's capital.
The shares were taken over at an average price of EUR1.1216, for a total value of about EUR11.2 million.
Arnoldo Mondadori Editore - up 0.7 percent - announced Tuesday that AdKaora, the Mondadori group's digital agency specializing in mobile advertising and proximity marketing, is continuing its growth by expanding into international markets and is proceeding with the acquisition of the remaining 70 percent of Adgage, a Madrid-based Spanish company specializing in mobile advertising and in-game advertising, of which it had taken over 30 percent in November 2021.
MFE's A shares close up 0.4 percent while the B shares are on a parity, while Silvio Berlusconi's will, on which there is still strict secrecy, was opened in front of his children.
On the Small-Cap list, boost on Immsi, which scores a plus 3.8% after two sessions closed among the bearish.
Mondo TV - down 0.2 percent - on Tuesday announced that it has signed a new agreement with Educational, an Italian company that for more than 40 years under the Ludattica brand has been conducting research and training activities on children's learning strategies based on play, that complements the one already in place since 2020 for the exploitation of licensing and merchandising rights of the property Il Gruffalò.
PLC System Srl - a PLC group company that closes in the red by 2.1 percent - signed a contract with Suncore 2 Srl, a Peridot Solar group company, for the turnkey construction of the utility substation serving a high-voltage apartment building, serviced by a large photovoltaic park with 31.7 MWp of total power, located in the Nuoro area.
Among SMEs, Energy ends the day in the red by 9.3 percent. The company reported Wednesday that Davide Tinazzi, the company's chief executive officer, reviewed preliminary first-half sales figures, which ended at EUR39.0 million compared to EUR53.3 million as of June 30, 2022. Ebitda margin was 20%.
Visibilia ends 20% in the red, on the day when Daniela Santanché-who sold her shares last October-reported in the Senate on the allegations against her made by a Report news investigation.
Fenix Entertainment closes up 48 percent at EUR0.017. It announced Tuesday that it had signed an agreement with Galassia Cinema, a newly formed company currently engaged in establishing a vast circuit of movie theaters, to date about 200 associated and about 200 more in the process of affiliation, throughout Italy.
In New York, at the height of trading, the Dow Jones is down 0.1 percent as is the S&P while the Nasdaq gives up 0.2 percent.
Among currencies, the euro changes hands at USD1.0875 versus USD1.0897 at Tuesday's European stock close. In contrast, the pound is worth USD1.2717 from USD1.2727 on Tuesday evening.
Among commodities, Brent crude is worth USD76.47 per barrel versus USD76.23 per barrel at Tuesday's close. Gold, on the other hand, trades at USD1,923.93 an ounce from USD1,927.47 an ounce Tuesday evening.
On Thursday's macroeconomic calendar, German factory orders will come out at 0800 CEST while the Italian, Spanish, French and Eurozone construction PMI index is expected at 0930 CEST.
At 1030 CEST the British construction purchasing managers' index will come out while at 1100 CEST Eurozone May retail sales are expected.
At 1300 CEST, US mortgage applications and unemployment claims will be released.
On the Piazza Affari calendar, no special events are scheduled.
By Chiara Bruschi, Alliance News reporter
Comments and questions at redazione@alliancenews.com
Copyright 2023 Alliance News IS Italian Service Ltd. All rights reserved.
