Sell on stock markets; Danske revises ECB cut estimates

(Alliance News) - On Friday, European stock markets -- confirming the futures market -- headed for a bearish opening, with selling taking the Milanese list to the 34,100 area, with stronger-than-expected U.S. economic data raising fears that the Federal Reserve may further postpone an interest rate cut.

Stronger-than-expected British inflation data also clouded the Bank of England's monetary policy outlook while the European Central Bank still seems on track to start cutting rates in June.

In this regard, Danske Bank no longer expects the European Central Bank to lower interest rates in September, citing steady inflation and a strong start to 2024 for the eurozone economy.

Frankfurt officials-for the Danish bank-will cut borrowing costs in June, as widely expected, and again in December, analysts led by Piet Christiansen estimated in a note. Recent data indicate that the ECB may wait before embarking on a series of reductions, they pointed out from Copenhagen in the focus on the ECB.

Thus, the FTSE Mib is giving up 0.8 percent to 34,183.80.

The Mid-Cap is marking minus 0.4 percent at 47,495.56, the Small-Cap is leaving 0.6 percent on the parterre at 28,841.22, and Italy Growth marks a fractional red at 8,234.29.

In Europe, London's FTSE 100 is giving up 0.7 percent, Frankfurt's DAX 40 marks minus 0.8 percent, and Paris' CAC 40 gives up 0.5 percent.

On the Mib, the only bullish performer is Iveco, which appreciates 0.3% after seven bearish sessions.

Banca Popolare di Sondrio, on the other hand, gives up 2.4 percent after 0.6 percent green in the previous session.

Banca Monte dei Paschi and BPER Banca are also at the back of the pack, posting minus 2.2% and 1.8% respectively. It should be noted that for Rocca Salimbeni - which has been missing the ex-dividend since 2011 - assets since the beginning of the year exceed 62 percent.

Eni - up 1.0 percent - let it be known Thursday that the first tranche of a new share buyback program will be launched any day now. In detail, the first tranche will cover a maximum of 6.4 million shares and for a maximum outlay of EUR150 million.

On the MidCap, among the minority of bullish investors, Moltiply Group marks a plus 1.3 percent, following the 0.8 percent green of the previous session.

Maire Tecnimont, on the other hand, advances 1.3 percent. The company announced Thursday that a consortium comprising subsidiary Tecnimont - Integrated E&C Solutions and Baker Hughes has been awarded a contract by Sonatrach to build three compression stations, as well as to upgrade the gas gathering system, at the Hassi R'mel gas field, 550 kilometers south of Algiers. The total value of the contract is about USD2.3 billion, of which Tecnimont is responsible for USD1.7 billion.

At the tail, Pharmanutra is giving up 1.7 percent with price at EUR49.25 per share, after two sessions closed in the green.

At the tail end, OVS closes the list, with the clothing company down 2.2 percent to EUR2.63 per share. As Teleborsa's analysis writes, "OVS's short trend is strengthening with resistance area seen at EUR2.71, while more immediate support is glimpsed at EUR2.666. An upward continuation towards EUR2.754 is expected."

On the SmallCap, strength on Beewize, which appreciates 5.8 percent, rearing its head after two sessions closed with a bullish candle.

Eems, on the other hand, advances 5.0%, with price at EUR0.3139 and market capitalization up nearly 50% on the seven-day frame.

Landi Renzo, on the other hand, marks a minus 4.6 percent, following the 1.5 percent decline on the eve of the day as it awaits accounts due later in the day. The stock-which has been missing the ex-dividend since 2011-has a fair value of EUR0.46 on the MarketScreener platform on the average of three analysts, making it about 37 percent underpriced.

Among SMEs, Caribbean Company gives up 6.3 percent, with new price at EUR1.30 per share. Of note, the stock has more than doubled its market cap in the past month, up more than 114%.

Allcore, on the other hand, gives up 3.9%, with traders waiting for accounts to be published on Tuesday.

Culti Milan is doing well, up 2.6 percent. The stock-which detached its dividend a month ago-signs minus 12% on the week.

In New York last night, the Dow gave up 1.5 percent, the Nasdaq closed down 0.4 percent, and the S&P 500 left 0.7 on the parterre.

Among Asian exchanges, the Nikkei gave up 1.2 percent, the Shanghai Composite is marking a red 0.4 percent, while the Hang Seng is marking minus 1.5 percent.

Among currencies, the euro changed hands at USD1.0823 from USD1.0826 on Thursday in closing European equities while the pound is worth USD1.2700 from USD1.2713 last night.

Among commodities, Brent crude trades at USD81.12 per barrel from USD81.78 per barrel on Thursday. Gold, on the other hand, trades at USD2,338.50 an ounce from USD2,344.25 an ounce on Thursday night.

Friday's macroeconomic calendar includes the start of the Eurogroup meeting at 1200 CEST.

In the afternoon, overseas from the U.S. will come data on durable goods.

Among the companies listed in Piazza Affari, the results of IIG, Landi Renzo and Mevim are expected.

By Maurizio Carta, Alliance News reporter

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