(Alliance News) - Major European stock markets are expected to open higher, Monday, according to IG futures, as stock exchanges in the U.S. remain closed for Martin Luther King Day and, on the Old Continent, the World Economic Forum begins in Davos, Switzerland, where political and business leaders will discuss key economic and geopolitical topics.

As for international balances, although Red Sea tensions show no signs of abating, Brent remains below USD80.00 per barrel. Offsetting the uncertainties caused by the conflict in Gaza and attacks in Yemen are "rising global supply, increasing competition to OPEC, and a weak global economic outlook," according to Ipek Ozkardeskaya, Senior Analyst at Swissquote Bank.

Thus, the FTSE Mib is expected to be in the green by 157.5 points or 0.5 percent after closing Friday up 0.7 percent to 30,470.55.

In Europe, London's FTSE 100 is expected to open up 15.0 points or 0.2 percent, Paris' CAC 40 is expected to be in the green 35.2 points or 0.5 percent, and Frankfurt's DAX 40 is expected to be up 93.0 points or 0.6 percent.

This week, comments Michael Hewson, Chief Market Analyst at CMC Markets, "the main focus will be on the UK economy, in the wake of better-than-expected November GDP data released on Friday that raised the prospect that the economy may have avoided a technical recession at the end of last year, thanks to a recovery in the economy, with services activity seeing the economy expand by 0.3 percent."

In the coming days, UK wage and unemployment data for November, as well as December CPI and retail sales, are expected, all of which have the potential to shift the dial on the timing of an initial rate cut by the Bank of England.

"With inflation still nearly double the Bank of England's 2 percent target and wage growth still above 7 percent, the idea that the central bank might consider a rate cut well before the summer seems unlikely. That said, many are suggesting that inflation could return to 2 percent by April, but even if it does we won't find out until mid-May when the numbers are published," Hewson adds.

"In this context," the analyst concludes, "it would be unlikely that the Bank of England would act on rates, especially since at the last meeting there were still three MPC members voting for a hike. It is unlikely that they will vote the same way in February, but it is still unlikely that they will go from raising to cutting with only one meeting in between."

Among Italy's smaller lists on Friday, the Mid-Cap advanced 1.0 percent to 44,378.03, the Small-Cap closed up 1.0 percent to 28,018.92, and Italy Growth in the green 0.2 percent to 8,257.82.

On the Mib, Banca Generali, which closed in the green by 1.8 percent, reported Thursday that it recorded inflows of EUR834 million in December, bringing the full-year figure to EUR5.86 billion, up 3 percent year-on-year.

December also consolidated the recovery of managed and insurance solutions compared to previous months, with EUR256 million in new flows. At the product level, financial containers raised EUR131 million in the month -- and EUR699 million in the year --, confirming it as the solution that best meets the needs of private clients in terms of diversification and customization offered.

Nanoco Group PLC on Friday said it signed a statement of work with "significant" joint development activities with STMicroelectronics, which closed down 0.5 percent.

Terna finished on top with 3.6 percent. On Tuesday it announced that it had successfully launched a single-tranche, fixed-rate bond issue totaling EUR850 million. It has a term of 7 years and matures on Jan. 17, 2031, will pay an annual coupon of 3.50 percent per year and will be issued at a price of 99.385 percent, with a spread of 100 basis points over midswap.

Stellantis--which closed on the fund leaving 0.8 percent on the parterre--reported Friday that its venture capital fund, Stellantis Ventures, has announced its participation as a strategic investor in Tiamat, a French company that develops and commercializes sodium-ion battery technology.

Azimut Holding -- in the green by 2.0 percent -- estimates it ended 2023 with adjusted net income of between EUR445 million and EUR455 million, in line with its full-year target of EUR450 million.

As disclosed Thursday by the management company, full-year net inflows were EUR6.9 billion, also in line with the internal target, while total assets hit a record high of EUR90.8 billion. About 46 percent of inflows, or EUR3.2 billion, were directed into managed products.

On the Mid-Cap, PharmaNutra's board of directors--up 7.8 percent--approved the group's preliminary sales figures for fiscal 2023 on Thursday, reporting consolidated net revenues of EUR100.2 million, up 21 percent from full-year 2022, when they were EUR82.7 million. Revenues in the Italian market increased 15 percent to EUR68 million from EUR59.2 million in 2022 while overseas revenues grew 37 percent to EUR32.2 million from EUR23.5 million in 2022.

Fincantieri closed at the top, up 8.8 percent.

Credem - up 0.5 percent - announced Thursday evening that it had issued a new bond issue, aimed at institutional and professional investors, for

an amount of EUR500 million. The issue, in the "Social Covered Bond" format, will go to support social sustainability activities and highlights the group's commitment to ESG.

LU-VE gave up 0.5 percent after reporting on Friday that revenue produced as of December 31 reached EUR606.8 million, up 0.3 percent from December 31, 2022.

On a like-for-like basis, the change would have been negative 0.7 percent.

The order backlog amounted to EUR156.2 million, down 17 percent from December 31, 2022.

On the Small-Cap, Safilo Group finished up 12 percent after announcing Thursday that it had early renewed its eyewear licensing agreement with Hugo Boss for the Hugo and Boss collections through December 2030.

Better did only Services Italy, up 17 percent.

Unieuro - up 2.6 percent - announced Friday that it had approved results for the first nine months of the year 2023-2024 ended Nov. 30, which reported revenues of EUR1.92 billion from EUR2.04 billion in the same period a year earlier.

Banca Sistema -- in the green by 0.2 percent -- reported Friday that it had consolidated its Factoring business and ended 2023 with volumes up 26 percent year-on-year, with the amount of loans purchased exceeding EUR5.5 billion.

EuroGroup Laminations, in the red by 0.6 percent, disclosed on Friday the inauguration of a new production plant in Querétaro, home of Eurotranciatura Mexico, with a total investment to be made of about EUR50 million.

Among SMEs, Lindbergh climbed 7.9 percent after reporting that Sun Mountain Fund LP, a leading institutional investor based in Boston, US, had achieved a stake of about 3.9 percent in Lindbergh's share capital, holding 328,000 common shares.

Sun Mountain is managed by Christian Solberg and Will Thorndike, author of the book "The Outsiders."

Specifically, after buying some blocks of shares from other institutional investors in late December, Sun Mountain bought 70,000 ordinary shares - or 0.8 percent of Lindbergh's share capital - on the market yesterday at a price per share of EUR2.20, for a countervalue of EUR154,000.

Good UCapital24, which advanced 15 percent, followed by Jonix, up 13 percent, and CleanBnB, up 11 percent.

Portobello--down 1.6 percent--reported Thursday that the board of directors has set the terms of the EUR8.0 million capital increase to be offered under option to shareholders. 1.1 million new ordinary shares will be issued, with a subscription price of EUR7.00 per share.

In Asia, the Nikkei closed up 1.0 percent at 35,901.79, the Hang Seng was in fractional green at 16,202.00, and the Shanghai Composite finished up 0.2 percent at 2,886.29.

In New York, which remains closed Monday for Martin Luther King Day, on Friday, the Dow closed 0.3 percent in the red at 37,592.98, the Nasdaq finished in fractional green at 14,972.76 while the S&P 500 closed just above par at 4,783.83.

Among currencies, the euro changed hands at USD1.0959 versus USD1.0962 recorded at Friday's European stock close, while the pound was worth USD1.2746 from USD1.2747 last night.

Brent crude is worth USD78.39 per barrel versus USD78.66 per barrel at Friday's close. Gold, on the other hand, trades at USD2,054.73 an ounce from USD2,052.10 an ounce Friday night.

Monday's economic calendar calls for the Italian trade balance at 1000 CET.

At the same time, Germany's annual GDP is expected while at 1100 CET from the Eurozone industrial production and trade balance are expected.

In the afternoon, at 1430 CET from Canada, motor vehicle sales and wholesale sales will be released while at 1455 CET French BTF auctions are expected.

In Piazza Affari, no particular announcements are expected.

By Chiara Bruschi, Alliance News reporter

Comments and questions to redazione@alliancenews.com

Copyright 2024 Alliance News IS Italian Service Ltd. All rights reserved.