(Alliance News) - Major European stock markets close in negative territory on Tuesday, while European and U.S. stock indexes suffered further setbacks due to investors' concern over expected U.S. inflation data tomorrow.
Thus, the FTSE Mib closes 1.1 percent in the red at 33,946.29, the Mid-Cap gives up 1.0 percent to 47,464.99, the Small-Cap loses 0.6 percent to 28,340.97, and Italy Growth ends up 0.1 percent to 8,150.43.
In Europe, London's FTSE 100 ends in the red by 0.1 percent, Frankfurt's DAX 40 is down 1.3 percent, and Paris' CAC 40 gives up 1.0 percent.
"In an otherwise quiet trading session devoid of major economic data, investors sold off equity indices as risk-off sentiment dominated the agenda ahead of Wednesday's FOMC minutes and CPI print," commented Axel Rudolph, senior market analyst at IG.
"While the price of gold hit another record high and the price of silver trades at levels last seen in June 2021 in a risk-off environment, oil prices slipped on comments from Hamas that the Israeli proposal for peace talks does not meet demands."
On the Mib, DiaSorin did best of all and rose 3.5 percent. It is followed by Telecom Italia and STMicroelectronics, up 1.4 percent and 1.3 percent, respectively.
ERG also does well, up 0.5 percent. The company reported that rating agency Fitch Ratings confirmed a long term issuer default rating of 'BBB-', with a Stable outlook, and a senior unsecured rating of 'BBB-'.
Fitch pointed out that in an energy scenario characterized by increasing volatility, the rating reflects the soundness of the group's business model and portfolio.
Among the bearish was Snam, in the red by 0.3 percent. The company announced Monday that it had completed the issuance of a EUR750 million floating-rate bond, two-year maturity and papri coupon at three-month Euribor plus 0.4 percent.
The company explained that the transaction is part of its strategy to optimize the cost of debt, which is expected to average 2.6 percent over the plan period.
Banca Generali -- in the red by 0.9 percent -- reported Monday that it recorded net inflows of EUR600 million, bringing its total since the beginning of the year to EUR1.65 billion.
The flow mix in the quarter improved markedly due to a strong increase in demand for investment products and services that rose to EUR651 million in the period from EUR109 million in January-March last year.
At the bottom sits Leonardo, down 8.9 percent. "Goldman Sachs considers the stock prices of European defense biggies to be overvalued, after two years of a wild ride, and on the stock market the shares of giants such as Rheinmetall and Leonardo come to an immediate halt. The theme is an alleged overestimation of profits to come, because from the geopolitical point of view there seems to be no appreciable news," wrote Alliance News columnist Francesco Bonazzi.
"Pulling the trigger on today's declines was a Goldman Sachs report that started from an undoubted consideration: since the Covid days, defense stocks have benefited from a hefty mass of money from big investors, who had bet on an increase in military spending by European governments with the Russian invasion of Ukraine in February 2022."
"For analysts at the U.S. investment bank, a decline in defense sector prices is now more likely than a new run for them between now and 2025."
On the cadet segment, Fincantieri rises 3.9 percent after reporting that it has received an order to build four new generation cruise ships from Norwegian Cruise Line Holdings.
In detail, two ships will be for the Regent Seven Seas Cruises brand and two for Oceania Cruises. The former are expected to be delivered in 2026 and the latter in 2029.
Anima Holding - in the red by 1.9 percent - reported Monday that it posted negative inflows of EUR94 million in March, bringing its total since the beginning of the year to a negative EUR867 million.
Among smallcaps, Itway gives up 0.9 percent after it announced Monday that its board of directors has appointed Massimo Fanelli as co-general manager with powers of ordinary administration.
Fanelli has served as deputy general manager since November 2022.
TXT e-solutions - down 1.3 percent - announced Tuesday that it has entered into a strategic partnership with Azimut Direct, a fintech company of the Azimut Group - down 1.7 percent on the Mib - that specializes in direct lending, minibonds and private equity.
Autostrade Meridionali - flat at EUR14.76 per share - on Monday reported results for the first quarter of the year, in which revenues were reported down to EUR59,000 from EUR140,000 as of March 31, 2023.
Unidata falls 0.8 percent after reporting Tuesday that it has signed a contract for Acquedotto Lucano to carry out interventions aimed at reducing losses in water distribution networks, including digitization and monitoring of networks.
Among SMEs, CrowdFundMe--flat at EUR2.10 per share--reported on Tuesday that it posted a turnover of EUR530,000 in the first quarter compared to EUR345,931 in the same period a year earlier, an increase of 53 percent.
Comal rises 4.5 percent after it reported that it signed two contracts worth a total of EUR41.5 million with a leading foreign energy investor for the turnkey supply on an EPC-M formula of a photovoltaic plant and the connection to another plant in southern Italy. The first contract also includes the supply of Comal's "Sun Hunter" tracker.
In New York, the Dow is in the red 0.6 percent to 38,674.25, the Nasdaq gives up 0.4 percent to 16,191.82, and the S&P 500 is down 0.5 percent to 5,176.73.
Among currencies, the euro changes hands at USD1.0857 from USD1.0851 on Monday in European equities close while the pound is worth USD1.2668 from USD1.2655 on Monday evening.
Among commodities, Brent crude is worth USD89.87 a barrel from USD90.09 last night and gold trades at USD2,364.25 from USD2,329.48 last night.
Wednesday's economic calendar opens at 0150 CEST with the price index of goods purchased by companies.
In Italy, retail sales are released at 1000 CEST, while at the same time some macros are expected from China such as data on new mortgages, M2 money supply and ongoing loan growth.
At 1110 CEST, still in Italy, the results of a 12-month BOT auction are published.
At 1300 CEST it is the turn of the rate on 30-year MBA mortgages in the US. At 1430 CEST, US inflation is released.
Among the companies listed in Piazza Affari, Fidia's results are expected.
By Claudia Cavaliere, Alliance News reporter
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