(Alliance News) - Major European stock markets confirmed expectations and opened in the red, with Milan doing worse than all at the start, as news came from the East that Japan's expanding economy allowed the country to avoid recession.
Thus, the FTSE Mib opened in the red by 0.8 percent to 33,142.80, the Mid-Cap CEDE 0.6 percent to 46,138.79, the Small-Cap is in the red by 0.2 percent to 27,449.15, and Italy Growth is down by 0.1 percent to 8,094.52.
In Europe, Paris' CAC 40 is in the red by 0.5 percent, London's FTSE 100 is in the fractional red, and Frankfurt's DAX 40 is down 0.7 percent.
Of note, Japan's economy avoided slipping into a technical recession at the end of 2023, according to official data released Monday.
According to the Cabinet Office, Japan's gross domestic product is estimated to have expanded by 0.1 percent in the last quarter of 2024 compared with the third quarter and compared with the initial estimate of a 0.1 percent contraction.
However, the market consensus cited by FXStreet expected a stronger revision, with growth of 0.3 percent.
From China, the National Bureau of Statistics reported that Chinese consumer prices rose by an annual 0.7 percent in February, exceeding market forecasts of 0.3 percent and marking a reversal from the sharpest decline in more than 14 years of 0.8 percent recorded in January.
The latest result is the first consumer inflation since last August, which hit the highest level in 11 months due to heavy spending during the Lunar New Year holiday.
On the Mib, Telecom Italia does best of all, up 1.5 percent. The company on Monday issued a supplement to its press release and presentation of its business plan to 2026, stating that pro forma net debt net of estimated deleverage for the Netco deal of around EUR6.1 billion as of December 31, 2023, is expected to be around EUR7.5 billion at the end of 2024.
This change is mainly attributable to an ordinary operating component-i.e., Ebitda net of investments, financial expenses, Net Working Capital performance, TIM Brasil minorities, and the taxes and other charges component-and an extraordinary operating component, i.e., impacts related to the Netco transaction such as separation costs, possible impacts from price adjustments, and additional items related to Net working Capital.
Finally, regarding the 2025-2026 cash flows, the company specified that in 2025 Net cash flow is expected to be around zero and in 2026 around EUR500.0 million.
Enel also does well at the start, up 0.9%. The company reported that, with the aim of rationalizing the management of distribution networks that interoperate in Lombardy, its subsidiary e-distribuzione Spa has signed an agreement with A2A - in the red by 2.1% - to sell to the latter 90% of the share capital of a newly established corporate vehicle, in which the electricity distribution activities in some municipalities in the provinces of Milan and Brescia will be conferred.
As the company explained, the agreement calls for A2A to recognize a consideration of about EUR1.2 billion, defined on the basis of an Enterprise Value - referring to 100 percent - of about EUR1.35 billion.
Iveco Group and Terna also rose, both in the green by 0.5 percent.
Among the bearers is Monte dei Paschi di Siena, which sits on the bottom and gives up 3.4 percent. STMicroelectronics is down 2.1 percent, as is Amplifon.
On the cadet segment, Safilo Group rises 1.9 percent after announcing that it has renewed its global license agreement with Missoni for Missoni-branded eyewear until the end of 2029.
UnipolSai Assicurazioni -- in the red by 0.2% -- on Friday reported that rating agency Fitch raised its restricted Tier 1 rating from BB to BB+.
Danieli drops 0.2 percent after announcing Thursday that it closed the first half of the year 2023/2024 on Dec. 31 with a profit of EUR98.8 million, up 33 percent from EUR74.1 million in the same period last year.
Among the smallcaps, Somec gives up 15 percent after announcing that it has reviewed its pre-closing data for the 2023 fiscal year and, as a result, revised downward its expectations for 2023, which were published last September. Specifically, the company now expects Ebitda to be below the minimum value in the previously disclosed range by about 25 percent.
Net financial position, on the other hand, will be above the maximum value expected from the range by about 20 percent.
CY4Gate - in the green by 0.2 percent - announced Monday that it has signed two contracts worth a total of more than EUR600,000 for the execution of two cyber security research and innovation projects with a leading Italian high-tech company, operating both in Italy and abroad, for a duration of 12 months.
Among SMEs, Pasquarelli Auto is not yet affected by the exchanges after it let it know on Friday that it had signed an agreement to lease a business unit of Giansante Auto, a dealership for the Fiat, Abarth, Lancia and Fiat Professional brands for the provinces of Chieti and Pescara, as well as a retailer of used cars, founded in 1949.
In 2022 Giansante Auto had revenues of about EUR24.3 million, a negative EBITDA of about EUR1.1 million and a loss of about EUR1.4 million. In 2023, the company activated the negotiated settlement procedure for business crisis resolution. The transaction is aimed at the possible future purchase of Giansante Auto.
The rent for the business unit is set at EUR10,000 monthly.
Deodato.Gallery rises 0.8 percent after announcing a partnership with EuroMilano for UpTown Milano, the residential project "that has generated a new culture of living in Italy," the company's note says.
UpTown is the first Smart District in the city of Milan and is the protagonist of the most important urban regeneration project in Italy.
The agreement has a three-year duration and the planned investment for this operation is more than EUR400,000, to be realized by December 31, 2027.
In Asia, the Nikkei closed down 2.2 percent to 38,820.49, the Hang Seng rose 1.4 percent to 16,587.57, and the Shanghai Composite gave up 0.7 percent to 3,068.46.
In New York on Friday evening, the Dow closed down 0.2 percent to 38,722.69, the Nasdaq gave up 1.2 percent to 16,085.11 and the S&P 500 finished down 0.7 percent to 5,123.69.
Among currencies, the euro changed hands at USD1.0943 against USD1.0948 recorded in Friday's European stock close, while the pound was worth USD1.2837 from USD1.2860 on Friday evening.
Brent crude is worth USD82.11 per barrel versus USD81.76 per barrel at Friday's close. Gold, on the other hand, trades at USD2,186.00 an ounce from USD2,181.30 an ounce Friday night.
Monday's macroeconomic calendar calls for the Eurogroup meeting at 1100 CET.
On the bond front, French BTF auctions with 3-, 6- and 12-month maturities are expected at 1455 CET, while from overseas at 1730 CET it is the turn of the US Treasury bond auctions with 3- and 6-month maturities.
Among the companies listed in Piazza Affari, results from Assicurazioni Generali, A2A, Cementir Holding and Leonardo, among others, are expected.
By Claudia Cavaliere, Alliance News reporter
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