(Alliance News) - On Friday, as futures predicted, the major European indexes open higher, with the Mib doing best of all, in anticipation this afternoon of U.S. nonfarm employment data.
Data that "could be among the most important employment data of the year as the U.S. bond and equity markets are at a crossroads. The U.S. 2-year yield refuses to lose sight of the 5 percent threshold, while the U.S. 10- and 30-year yields are purporting to rise further toward 5 percent based on expectations that inflation will remain higher for longer and require interest rate hikes for longer," comments Ipek Ozkardeskaya, Senior Analyst at Swissquote Bank.
The FTSE Mib then opens up 0.8 percent to 27,711.41, the Mid-Cap rises 0.7 percent to 39,157.30, the Small-Cap advances 0.3 percent to 25,212.26, and Italy Growth advances 0.3 percent to 8,112.92.
In Europe, London's FTSE 100 advances 0.3 percent, Paris' CAC 40 is in the green by 0.4 percent and Frankfurt's DAX 40 opens up 0.7 percent.
Ahead of the data expected this afternoon, "the U.S. economy is expected to have added 170,000 new nonfarm payroll jobs in September. Last month it was 187,000, and we expect the numbers to come down gradually. Wage growth, on the other hand, is seen stable at around 4 percent, significantly above the actual CPI figure of 3.7 percent," the analyst further points out.
Today, a reasonable wage growth figure coupled with another NFP number below 200,000, preferably close to the expectation of 170,000, or ideally lower, "should throw some cold water on bond yields, especially on the longer end of the yield curve," Ozkardeskaya adds. "But the impact of a cooling U.S. sovereign markets does not mean that equities are out of the woods. For stocks to continue to perform well, earnings expectations would have to keep pace with yields, and if the economy is slowing-a signal that could come from softer employment data-investors may remain reluctant to return to equity markets."
On the main list of the Italian Stock Exchange on Friday morning, Italgas gave up 0.3 percent after announcing Thursday that it had completed corporate simplification related to its operating presence in Greece.
In fact, the merger by incorporation into DEDA - Public Gas Distribution Company SA - of EDA Thess and EDA Attikis, companies of Italgas Group's Depa Infrastructure group, was completed
Prysmian opens up 1.1 percent after closing up 4.2 percent, buoyed by the presentation of its new strategy unveiled Thursday, which includes the reorganization of its business into four new segments. In a statement, the company also disclosed the group's financial and non-financial targets to 2027.
The group expects adjusted Ebitda to grow to EUR2 billion in 2027 from EUR1.49 billion in 2022.
Saipem rises 1.7 percent and takes the top spot after announcing Thursday that it has signed - in consortium with National Petroleum Construction Company - a Letter of Award with ADNOC for a new contract for package 1 of the Hail and Ghasha Development Project in the United Arab Emirates.
The value of Saipem's share is approximately USD4.1 billion.
FinecoBank opens up 0.7 percent after closing down 2.0 percent. On Thursday it reported September net inflows of EUR446.7 million, down from EUR514.5 million in the same month a year earlier.
On the Mid-Cap, Aeroporto Guglielmo Marconi Di Bologna climbs 0.5 percent. It reported Thursday that it recorded about 1 million passengers in September, a record figure and the third busiest month in the airport's history.
Anima Holding rises 0.7 percent. The company reported that the group's net inflows of assets under management in September were negative EUR271 million.
At the end of September, total assets under management of the Anima group stood at about EUR184 billion.
Maire Tecnimont opens up 5.3 percent after reporting that Tecnimont, part of the Integrated E&C Solutions business unit, signed a letter of award with ADNOC on Thursday for the onshore treatment plant at the Hail and Ghasha project.
The total value of the EPC contract is about USD8.7 billion and the project is scheduled for completion during 2028.
On the Small-Cap, algoWatt is up 0.9 percent after reporting that it was awarded a EUR255,000 grant for digital energy solution provider & system integrator activities on the ResilMesh project, funded under the Horizon Europe program.
In the ambitious context of holistic protection of critical infrastructures, the ResilMesh project will develop a set of innovative tools for the implementation of a Security Orchestration and Analytics Platform Architecture - SOAPA founded on the concept of cybesecurity awareness to improve the resilience of digital infrastructures through the achievement of several objectives.
Real Estate Large Distribution SIIQ is not trading yet. The company announced that it has resolved to issue a EUR400.0 million senior unsubordinated and nonconvertible bond.
In addition, the board decided to initiate an exchange offer of the bond maturing in November 2024 and an offer to repurchase the existing bonds for a cash amount on the condition that a certain amount from the repurchase is reinvested in the purchase of new bonds.
Among SMEs, Casta Diva Group opens up 2.6 percent after announcing Thursday that its board of directors reviewed its September 30 production value figure, which came in at EUR71 million, up 28 percent from the same period last year, when it was EUR56 million.
In the third quarter, in particular, production value increased 49 percent over the same period in 2022, to EUR21 million versus EUR14 million, thanks to continued strong demand for events that CDG is able to tap into.
Almawave, still not trading after closing up 2.6 percent. The company reported Thursday that its subsidiary SisTer won the COMESA - Common Market for Eastern and Southern Africa tender to enhance the Africa Information Highway public data platform, which the African Development Bank makes available to all African countries and regional and subregional organizations.
Spindox rises with 5.9 percent. PMI announced the formal admission of the WICO - Water Quality Innovative Control by Artificial Intelligence - project by the Ministry of Enterprise and Made in Italy to funding under the PNRR.
Together with Archa, lead partner, CNR, Acque and Dielectrik, Spindox will develop an intelligent platform for monitoring water for human consumption. The system will target the Lower Valdarno aqueduct, which serves more than 800,000 citizens.
The total investment of the five partners is EUR5.9 million, matched by a total facility of EUR2.8 million, of which Spindox will receive about EUR1.1 million in grants.
Doing better are Intermonte Partners and Altea Green Power, which open up 6.0 percent.
In Asia, the Nikkei closed fractionally in the red while the Hang Seng rises 1.3% and the Shanghai Composite is closed for holidays.
In New York on European night, the Dow closed fractionally in the red at 33,119.57, the Nasdaq gives up 0.1% to 13,219.83, and the S&P 500 is 0.1% in the red at 4,258.19.
Among currencies, the euro changes hands at USD1.2195 against USD1.0519 recorded at Thursday's European equities close while the pound is worth USD1.0547 from USD1.2150 on Thursday evening.
Among commodities, Brent crude is worth USD83.93 per barrel from USD85.74 per barrel at Thursday's close. Gold, meanwhile, trades at USD1,819.81 an ounce from USD1,819.87 an ounce on Thursday evening.
Friday's macroeconomic calendar features Italy's retail sales numbers at 1000 CEST.
From the U.S., room for private sector employment data at 1430 CEST, while those for Baker Hughes drilling rigs will come in at 1900 CEST.
Among the companies in Piazza Affari, the accounts of Juventus Football Club, SS Lazio and Lifestyle Group are expected.
By Chiara Bruschi, Alliance News reporter
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