(Alliance News) - On Tuesday, major European stock markets confirm expectations and open in negative territory ahead of the release of important macroeconomic data in the Eurozone.
Thus, the FTSE Mib is down 0.7 percent to 28,453.46, the Mid-Cap gives up 0.2 percent to 42,094.60, the Small-Cap is in fractional red at 27,258.89, while Italy Growth rises 0.1 percent to 8,889.06.
In Europe, Paris' CAC 40 is in the red by 0.6 percent, Frankfurt's DAX 40 gives up 0.5 percent, and London's FTSE 100 is in the red by 0.8 percent.
"The day started brightly as Asian markets rose on signs that China's recent stimulus measures were helping to boost the real estate sector, after a jump in home sales in two major Chinese cities helped push the Hang Seng to three-week highs. This followed Friday's boost from the U.S. jobs report, which reinforced the view that the Federal Reserve will be able to keep rates steady when it meets later this month," commented Michael Hewson, chief market analyst at CMC Markets.
"The return of U.S. markets after yesterday's Labor Day holiday should provide a bit more depth to today's price action in Europe, with the focus to be on August services PMIs, after the RBA left Australian interest rates unchanged at 4,1% this morning, unsurprisingly for the third consecutive time, with little indication of a rate cut in the future as the central bank insists that inflation remains too high and that it will take until late 2025 for prices to return to the target range of 2-3%."
"Today's data could be the final piece of the puzzle in deciding whether the ECB will decide to suspend its rate hike cycle, even though August's inflation showed an unwelcome increase. Further complicating the picture for the ECB is the fact that the PPI has been in negative territory for the past 3 months on an annual basis and looks set to slip further into deflation territory in July. On a monthly basis we can expect a decline of 0.6 percent, which would be the seventh consecutive monthly decline. On a year-on-year basis, prices are expected to fall by 7.6 percent."
On the blue chip list, the banking sector goes into the red, with Banca Monte dei Paschi di Siena sitting at the bottom and giving up 1.6 percent. Ahead are Banco BPM, BPER Banca, Intesa Sanpaolo and UniCredit, all down between 1.5 percent and 0.7 percent.
Also down are oils with Saipem, Tenaris and Eni down within a range of 0.4 percent to 0.1 percent.
Eni on Monday disclosed that it had signed an agreement with Oando, the leading Nigerian energy company listed on both the Nigerian Stock Exchange and the Johannesburg Stock Exchange, to sell Nigerian Agip Oil Company, a wholly owned subsidiary of Eni and active in Nigeria in onshore hydrocarbon exploration and production and power generation.
Saipem reported that it has successfully completed the placement of EUR500 million of senior unsecured guaranteed equity-linked bonds maturing in 2029.
Prysmian -- in the green by 0.6 percent -- announced Tuesday that it has signed a capacity reservation agreement for a capacity reservation fee of up to about EUR90 million with Marinus Link Pty Ltd, a subsidiary of TasNetworks, Australia's transmission system operator, for a new power interconnection between Tasmania and the state of Victoria.
The agreement includes, among other things, the Commonwealth government's guarantee of the capacity reservation fee of up to about EUR90 million and Prysmian's continued availability of capacity until the final contract is signed to be in place by July 2024.
On the Mid-Cap, Webuild gives up 1.5 percent. The stock had risen sharply on Thursday after Snowy Hydro, the developer of the Snowy 2.0 project in Australia-the largest Australian hydropower project, 100% owned by Webuild after its acquisition of Clough-announced Thursday morning that it was revising the contract.
Juventus FC rises 0.1 percent. The Bianconeri club on Friday announced that it had reached an agreement with FC Union Berlin for the outright free transfer of the rights to the sports performance of football player Leonardo Bonucci. This transaction generates a negative economic impact on the 2022-2023 financial year of EUR5.6 million due to the adjustment of the net book value of the player's sports performance right.
On the Small-Cap, Itway gives up 2.1 percent after announcing Friday that it has signed a partnership with CLoudian, a leading enterprise-class object storage software company.
As Itway explains, this partnership aims to further expand Itway's cyber security and cyber resilience offerings.
Itway Group expects revenues of EUR5 million in the next two years by operating in the service provider, public administration, healthcare, energy, education, banking and insurance sectors.
Aquafil gives up 0.3 percent. The company reported that it closed the first half of the year with a loss of EUR4.1 million from a profit of EUR17.7 million recorded in the same period of the previous year and a drop of 123%.
As of June 30, revenues stood at EUR311.1 million, down 11 percent from EUR351.0 million in 2022. Ebitda was worth EUR31.3 million from EUR51.5 million and down 39%. Ebit was EUR4.1 million from a negative EUR3.9 million as of June 30, 2022.
Among SMEs, Alfonsino rises 5.8 percent after it announced Tuesday that it has reached a cooperation agreement with Gruppo VéGé, the first Modern Distribution group established in Italy, consisting of 32 member companies located throughout Italy and active with more than 3,000 stores including hypermarkets, superettes and Cash&Carry.
eVISO gives up 2.5 percent. The company reported Thursday that it closed the year ended June 30 with revenues up to EUR225 million from EUR208 million a year earlier.
NVP is not yet affected by trading, but reported Friday that it has been awarded the tender to produce the Lega Serie C matches for the next three years.
The production of the matches will take place using innovative remote production technology at the Innovation Hub in Cologno.
In Asia, the Nikkei rose 0.3 percent to 33,036.76, the Hang Seng gave up 2.0 percent to 18,467.43, and the Shanghai Composite lost 0.7 percent to 3,154.37.
Among currencies, the euro changed hands at USD1.0762 to USD1.0791 in Monday's European equities close while the pound was worth USD1.2581 to USD1.2619 on Monday evening.
Among commodities, Brent crude is worth USD88.58 per barrel versus USD89.10 per barrel at Monday's close. Gold, meanwhile, trades at USD1,962.15 an ounce from USD1,938.07 an ounce on Monday evening.
On Tuesday's economic calendar, Italy's Composite and Service Sector PMI is due at 0945 CEST, with five-minute intervals France's, Germany's and finally at 1000 CEST the Eurozone's are published. At 1030 CEST the data from the United Kingdom will be forthcoming.
At 1100 CEST the producer price index from the Eurozone is expected.
From the US, at 1600 CEST the durable goods and factory orders. Finally, at 1730 CEST, an auction of 3-month, 6-month and 52-week Treasury bonds is scheduled.
On the corporate calendar, coming up are the results of GVS, Immsi and Sabaf.
By Claudia Cavaliere, Alliance News reporter
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