(Alliance News) – On Friday, major European stock markets confirmed expectations and opened in positive territory, while eyes are on the speech by the top banker of the US Federal Reserve, Jerome Powell, at the symposium planned for this afternoon in Jackson Hole.
The FTSE Mib opened up 0.7 percent to 33,529.01, the mid-cap rose 0.3 percent to 46,605.43, the small-cap gained 0.2 percent to 28,625.11, while Italy Growth fell 0.1 percent to 8,042.43.
In Europe, the Paris CAC 40 is up 0.4 percent, the London FTSE100 is up 0.2 percent and the Frankfurt DAX 40 is up 0.3 percent.
“US equity markets saw a sell-off yesterday as investors reduced their long positions ahead of Federal Reserve Chairman Jerome Powell’s speech in Jackson Hole scheduled for today. This speech is likely to dash expectations of rate cuts as there is no reason for the Fed to start cutting rates sharply unless there is a sharp economic downturn, market stress or crisis. At least that is what the data suggests and what other Fed members are also hinting at,” commented Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
“Swap markets continue to price in a Fed cut of around 95 basis points between September and year-end. A cut of this magnitude means the Fed would have to cut rates at every meeting this year, and by 50 basis points at one of the meetings. At the moment, it seems more likely that this will not happen than the other way around. So rates need to brace for a cut of at least 75 basis points by year-end. The real risk – for the doves – is that the Fed starts cutting rates in September and then decides to pause, as the European Central Bank did in July, for example.”
In macroeconomic news, the French manufacturing sentiment indicator rose to 98.8 in August, after hitting a three-and-a-half-year low of 95.4 in July, beating market forecasts of 96.
However, the latest reading remained below the long-term average of 100.
On the list of companies with the highest market capitalization on the Italian stock exchange on Thursday, banks were on the rise. Banco BPM took first place with a gain of 1.4 percent. Banca Popolare di Sondrio also did well, gaining 1.2 percent.
The Iveco Group is also on the up, increasing by 1.3 percent, while Stellantis is also up by 1.3 percent.
DiaSorin – up 0.1 percent – announced that the Turin Court of Appeal had annulled a decision of the National Commission for Companies and the Stock Exchange, which had imposed an administrative fine of 100,000 euros on the company in connection with the controversial violation of disclosure obligations under the “MAR Regulation”.
As the company explained in a statement, the sanction lifted by the Turin Court of Appeal related to information made available to the market in two press releases in 2020. They concerned the completion of studies for the launch of a molecular test and a serological test to diagnose and identify the immune response to SARS-CoV-2. This information should have been classified as privileged by the company – according to the CONSOB prospectus.
Winners include Brunello Cucinelli and Ferrari, the only stocks on the list in the red, down 0.4 percent and 0.2 percent respectively.
In the cadet segment, Juventus Football Club rises 1.0% after announcing that it has reached an agreement with AC Milan to temporarily acquire the rights to the sporting performances of footballer Pierre Kazeye Rommel Kalulu Kyatengwa until June 30, 2025. The amount is 3.3 million euros, payable in two financial years.
The agreement also includes the option for Juventus to fully acquire the rights to the player’s sporting performance.
Webuild – up 0.3 percent – reported on Thursday that Lane, the group’s US subsidiary, has received a contract worth a total of 466 million US dollars (427 million euros). Lane’s share is 35 percent. The contract concerns the construction of the Palisades Tunnel in New Jersey, USA.
The contract is the first tunnel awarded by the Gateway Development Commission as part of the larger Hudson Tunnel Project, which involves building a new tunnel between New York and New Jersey and maintaining an existing tunnel that has been in place for more than 114 years. The Palisades Tunnel is one of three separate tunnels that will make up the HTP, along with the Hudson River Tunnel and the Manhattan Tunnel.
The contract also calls for the construction of the tunnel’s west portal near the Tonnelle Avenue construction site in North Bergen, six cross-connection tunnels and a shaft in Hoboken, Hudson County.
Philogen performed worse than all the others, falling 1.4 percent to 21.30 euros per share.
Among small-cap stocks, d’Amico International Shipping rose 0.8 percent. The company announced on Monday that its operating subsidiary d’Amico Tankers DAC had exercised its call option on the MT Crimson Pearl.
It is a medium-range tanker with a deadweight capacity of 50,000 tons, built in August 2017 at Minaminippon Shipbuilding Co., Ltd. in Japan for approximately US$31.0 million and is expected to be delivered between September and October 2024.
The DIS fleet currently includes 33 double-hull tankers with an average age of 8.8 years in relation to the company’s own and chartered bareboat vessels.
EPH performed worst with a loss of 4.6 percent, followed by Class Editori and Monrif with a loss of 2.6 percent and 2.3 percent respectively.
Among SMEs, the share price of Distribuzione Elettrica Adriatica is stagnating at EUR 8.40 after the company announced on Thursday that it had acquired control of ASPM Soresina Servizi and the contract to renew the electricity and methane gas distribution networks and the public lighting systems of five Lombardy municipalities.
In the fiscal year ended December 31, 2023, ASPM achieved a production value of EUR 5.2 million, an EBITDA of EUR 1.3 million and a net financial status of EUR 2.0 million.
The transaction amounted to approximately EUR 3.7 million and included the acquisition by DEA of an 80% stake in ASPM’s share capital, the payment of an amount of approximately EUR 2.3 million for the acquisition of a majority stake in ASPM and the subscription of a capital increase of EUR 1.5 million.
Redelfi – up 1.3 percent – announced on Tuesday the appointment of Elisabetta Migone as Managing Director to the board of its subsidiary Enginius Srl.
In Asia, the Nikkei recovered 0.4 percent, the Hang Seng lost 0.2 percent and the Shanghai Composite gained 0.2 percent.
In New York, the Dow closed 0.4 percent lower on the European night, the Nasdaq lost 1.7 percent and the S&P 500 lost 0.9 percent.
Among currencies, the euro changed hands at $1.1118 at the European close on Thursday (up from $1.1110), while the pound was worth $1.3121 on Thursday evening (up from $1.3087 on Thursday).
Among commodities, Brent oil is trading at $77.62 a barrel, up from $77.35 a barrel at Thursday’s close. Gold, on the other hand, is trading at $2,528.10 an ounce, up from $2,476.53 an ounce on Thursday evening.
The event of the day on Friday’s macroeconomic calendar will be the speech by Jerome Powell, the top official of the US Federal Reserve, at the Jackson Hole symposium at 16:00 CEST.
At 19:00 CEST, the Baker Hughes oil rig report will be published, while at 21:30 CEST, as usual on Friday, the COT report will be published.
No special events are expected at the companies in the business location.
By Claudia Cavaliere, reporter at Alliance News
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