Stock exchanges heavy; Milan lines up with declines

(Alliance News) - On Wednesday, the Milan index moved lower to the downside around the 27,100 mark, heading into the third session to end on a deficit balance if confirmed at the close, with trading rooms continuing to assess -- primarily -- the progress of the U.S. debt ceiling talks.

U.S. President Joe Biden said Tuesday he was "optimistic" about getting a deal to avoid a potentially catastrophic debt default, after holding talks with Republican leaders.

Eurozone inflation accelerated again -- albeit slightly -- in April compared to March, although it is lower than that recorded a year earlier, Eurostat reported Wednesday. Eurozone consumer prices rose 7.0 percent in April after rising 6.9 percent in March. In April 2022, they rose 7.4 percent.

Thus, the FTSE Mib is down 0.2 percent to 27,132.12, the Mid-Cap gives up 0.5 percent to 42,958.61, the Small-Cap is in fractional green at 27,895.65, and Italy Growth is in the red 0.1 percent 9,095.91.

In Europe, London's FTSE 100 is just above par, Paris' CAC 40 is in the red by 0.1 percent, and Frankfurt's DAX 40 is in the green by 0.3 percent.

On the main list, Telecom Italia is among the few bullish in an almost completely bearish list. The stock is benefiting from news from Dario Scannapieco, CEO of Cassa Depositi e Prestiti, who denied CDP's withdrawal from the race for TIM's network. "We are working with Macquarie to answer the questions posed by the TIM board of directors and to review the bid for the network," Scannapieco said in an interview with Bloomberg TV, but he did not comment on the news that Macquarie would not be willing to submit a joint bid with KKR.

On this point, the CDP CEO explained that it is not clear how the bid for TIM's network will be revised but he did not rule out working together with KKR, which would also be a welcome possibility for the Italian government.

Also in the green is Interpump, which picks up 2.5 percent with new price at EUR52.10, following eve's green with 3.8 percent.

FinecoBank, on the other hand, gives up 2.2% after eve's 2.1% gain. On the stock it is reported that a few days ago Berenberg cut the target price to EUR17.00 from EUR19.00 with a 'buy' recommendation.

DiaSorin, on the other hand, goes down 1.9 percent, with new price at EUR1.9, after 0.7 percent of assets on eve.

In the last wagons we also see Monte dei Paschi, which is leaving 1.8% on the parterre, after the good 4.2% collected yesterday at the close.

On the Mid-Cap, strength on LU-VE, which places the bar up 1.2 percent, resisting the bearish current that also prevails in this segment after the 1.1 percent green on eve.

SEco, on the other hand, retreats 3.0%, positioning itself at the bottom of the list, heading for the third session to close on the bearish side.

Tod's, on the other hand, gives up 2.4 percent to EUR38.28, after last night's 1.1 percent gain and roughly in line with analysts' assessment. In fact, according to the MarketScreener platform the stock - out of an average of 17 analysts - has an average target price of EUR38.98, with the spread on the current value well below 1%.

On the SmallCap, good session for Basicnet, which rises 2.8 percent to EUR5.84 per share, with the company regularly engaged in its buyback program. Most recently, it announced on Monday that it had purchased 11,350 of its own ordinary shares for a total value of EUR63,000 or so.

Also trading well is d'Amico, which trades up 2.3 percent with price at EUR0.3765 following up on Tuesday evening's timid 0.6 percent gain.

Autostrade Merididionali loses ground, which retreats 4.4% bringing its month-on-month loss to nearly 38%.

Among SMEs, red and tail of the list for Fenix Entertainment, which gives up 7.6 percent, trading at its yearly low at EUR0.20.

Farmacosmo, on the other hand, gives up 4.5 percent, on the heels of the eve's contraction that closed at minus 4.3 percent.

Among the positive notes, Erredue, on the other hand, rises 4.5 percent to EUR10.20 per share.

In New York, the Dow closed Tuesday down 1.0 percent to 33,012.14, the Nasdaq gave up 0.2 percent to 12,343.05 and the S&P 500 fell 0.6 percent to 12,343.05.

Among currencies, the euro changed hands at USD1.0831 versus USD1.0864 at Tuesday's close. In contrast, the pound is worth USD1.2443 from USD1.2492 last night.

Among commodities, Brent crude is worth USD74.95 per barrel versus USD75.06 per barrel Tuesday evening. Gold, on the other hand, trades at USD1,988.74 an ounce from USD1,998.29 an ounce at Tuesday's European stock closing

On Wednesday's macroeconomic calendar, at 1300 CEST, space is given to the U.S. mortgage market data, at 1430 CEST to the building permits data, and at 1630 CEST to the EIA report on refineries. At the same time, will come the Cushing inventory numbers.

At 1900 CEST, an auction of 20-year US Treasury bonds is scheduled.

Among the companies in the Square, no results are expected.

By Maurizio Carta, Alliance News senior reporter

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