(Alliance News) - European stock markets continue the declines with which they opened Wednesday, with Milan no exception dragged down by banks and with the bar dropping to 26,500. The standoff over the U.S. debt ceiling deal appears to be dragging on, raising investor concerns about the fast-approaching default deadline, with the latest date set for June 1.

Among the macro data, Germany's Ifo business climate indicator released Wednesday fell 1.7 points from the previous month to 91.7 in May, down from the previous month's 14-month high and below market expectations of 93.0.

This is the index's first monthly decline since last October, amid substantial deterioration in industry expectations and a likely significant drop in new orders due to recent interest rate hikes and stubbornly high inflation.

Thus, the FTSE Mib has a bearish reading of 2.5 percent at 26,505.75.

London's FTSE 100 is giving up 1.6 percent as well as Paris' CAC 40 1.4 percent, while Frankfurt's DAX 40 is marking minus 1.5 percent.

Among the smaller Milanese lists, the Mid-Cap is down 1.8 percent to 41,956.27, the Small-Cap is giving up 1.2 percent to 27,646, while Italy Growth is giving up 0.3 percent to 9,128.39.

On the main list, Banca Monte dei Paschi is stepping back 5.4 percent, the subject of profit-taking after two closings on the bullish side.

Selling also prevails on BPER Banca, which is flexing 5.1%in position for the third session to end on the losing side.

Rear-ends also for Leonardo, which is giving up 4.5 percent with price at ER10.52. Goldman Sachs cut its target price on the stock to EUR12.00 from EUR11.70.

Pirelli, on the other hand, is giving up 4.6 percent to EUR4.72 on the heels of eve's 1.3 percent red. The stock, since the beginning of the year, marks a surplus approaching 16 percent.

Green for Mediobanca, which is rallying 2.1% to EUR10.38 per share. Mediobanca's board of directors on Wednesday announced that it had approved the guidelines of the 2023-26 plan. As stated in the released note, "the group is setting challenging targets and confirms its ability to generate growth in profitable assets: total financial assets at EUR115 billion, up 11% and AUM/AUA at EUR85 billion, up 13%. In addition, loans to customers are EUR57 billion, up 3 percent."

Also, growth in earnings with earnings per share up 15 percent in a range of EUR1.15 to EUR1.80, taking into account the write-off of about 80 percent of the shares from the buyback plan with increasing contribution from WM and CIB and with lower but further growth in CF and NII, "confirming the high levels of profitability," the note says.

In the cadet segment, where no stock is currently up, GVS is stepping back 6.3 percent to EUR5.3550 per share, after ending the previous three sessions in the green.

Reply is contracting 2.4 percent to EUR101.80, after eve's tentative gain of 0.2 percent, while OVS is marking minus 3.1 percent, with new price at EUR2.55.

MFE-MediaForEurope announced Wednesday that its board of directors approved first-quarter results in which a consolidated profit of EUR10.1 million was reported from EUR2.7 million in the same period last year. Ebit is positive EUR19.3 million from EUR15.3 million in the first quarter of 2022. Consolidated net revenues are EUR646.6 million from EUR654.3 million as of March 31, 2022. Class A shares give up 2.1 percent, while class B shares mark minus 3.0 percent.

Brunello Cucinelli, on the other hand, retreats 3.6 percent. The company announced Tuesday that it had reached an agreement with Chanel and the Cariaggi family to sell an 18.5 percent stake in Cariaggi Lanificio to Chanel. Brunello Cucinelli held 43 percent of Cariaggi Lanificio, and with the sale made today his stake becomes 24.5 percent.

On the Small-Cap, Pininfarina advances 3.5% with price at EUR0.8180, while Zucchi moves ahead 3.7%, rearing its head after two bearish sessions.

Pierrel, on the other hand, gives up 4.4 percent, following a 0.7 percent loss on the eve and bringing its month-on-month loss to over 26 percent.

Among SMEs, Eprcomunication contracts 6.0%, closing the list and placing the price in the ER2.80 area.

Bifire is stepping back 5.5 percent to EUR3.42, heading for the second session in a row in negative balance.

Franchi Umberto Marmi, on the other hand, advances 4.2 percent to EUR8.00 per share. Sultitle traded high with about 21.60peices traded against a three-month daily average of about 2,500.

Among the declines is Casta Diva, which is giving up 4.8 percent to EUR1.20 per share.

In New York overnight Europe, the Dow gave up 0.7 percent the Nasdaq 1.3 percent, while the S&P 500 closed down 1.1 percent.

Among currencies, the euro changed hands at USD1.0773 versus USD1.0778 at Tuesday's close. In contrast, the pound is worth USD1.2486 from USD1.2425 last night.

Among commodities, Brent crude is worth USD78.18 per barrel versus USD77.31 per barrel Tuesday evening. Gold, on the other hand, trades at USD1,975.84 an ounce from USD1,966.95 an ounce last night.

On Wednesday's macroeconomic calendar, the European Central Bank's non-monetary policy summit is expected at 1000 CEST. An hour later comes German business expectations and the IFO index of German business confidence.

At 1300 CEST comes mortgage loan data from the United States.

At 1630 CEST it is the turn of oil stocks.

By Maurizio Carta, Alliance News reporter

Comments and questions to redazione@alliancenews.com

Copyright 2023 Alliance News IS Italian Service Ltd. All rights reserved.