(Alliance News) - Europe's major stock markets head for a positive opening Thursday on the heels of a bullish close in the U.S. and a strong performance in Asia, while in the Old Continent manufacturing PMIs from Spain, Italy, France and Germany are expected in the morning.
The FTSE Mib, according to IG futures, is expected to rise 0.7 percent after closing in the green by 0.9 percent at 27,985.44.
In Europe, London's FTSE 100 is expected to be in the green by 0.6 percent, Paris' CAC 40 is up 0.8 percent, and Frankfurt's DAX 40 is given up 0.7 percent.
Overnight, U.S. markets closed the session higher, while the decline in yields seen before the European close continued in the wake of Fed Chairman Jerome Powell's press conference and looks set to see European markets continue the momentum this morning.
As expected, the Federal Reserve kept rates unchanged for the second consecutive meeting yesterday. In the press conference, the Fed chairman was keen to emphasize that the pause does not necessarily represent the end of the hikes or an indication of upcoming decisions, which will be made on a meeting-by-meeting basis depending on the 2.0 percent inflation target.
However, "even though at first glance Powell was trying to appear hawkish, markets did not believe him, especially since yesterday's economic data showed that the U.S. economy appears to be slowing," commented Michael Hewson, Chief Market Analyst at CMC Markets. Like anything else, this is a balancing act for Powell as well as the rest of the FOMC, and with this meeting now it is clear that the rest of the committee can show their hands given the sharp drop in bond yields yesterday that indicated that markets believe the Fed is done."
"Today is the Bank of England's turn to decide whether to raise rates, and while we can expect to see a decision similar to the one the Fed made yesterday, the nuances of any decision are likely to be markedly different," the analsite added.
Among Italy's minor listings Wednesday evening, the Mid-Cap rose 0.8 percent to 38,704.92, the Small-Cap gained 0.6 percent to 24,509.14, and Italy Growth finished up 0.6 percent to 7,664.52.
On the main list in Piazza Affari, good trades on Stellantis, which rose 1.9 percent to EUR17.94 per share. The company reported Tuesday that it reported a 7 percent year-on-year increase in third-quarter revenues to EUR45.1 billion.
The number of vehicles delivered was 11% higher than a year ago at 1.43 million, the Amsterdam-based automaker reported. For the first nine months, sales grew 10 percent year-on-year to EUR143.5 billion.
Purchases also on BPER Banca, up 2.3 percent to EUR3.1380 per share, following up on the previous three sessions ended among the bullish.
Best in the basket, however, were Nexi and Telecom Italia, up 4.0% and 3.7%, respectively.
At the tail end of the list, however, was Iveco, which gave up 8.96 percent. The board reported Wednesday that it ended the third quarter with adjusted net income of EUR84 million, compared to EUR54 million in Q3 2022. Adjusted diluted earnings per share were EUR0.28, up EUR0.18 from Q3 2022. Consolidated revenues were EUR3.8 billion, up 6.7 percent.
Marked sales also on CNH Industrial, down 1.6% after eve's rise of 2.3%.
Enel--up 0.8%--reported Tuesday that it had purchased 479,787 of its own ordinary shares between October 23 and 27. The shares were taken over at an average unit price of EUR5.7318, for a total value of EUR2.8 million.
On the Mid-Cap, BFF Bank rose 2.5 percent, ending its fourth bullish session in a row.
Also among the best was Sanlorenzo, up 3.3 percent and rearing its head after two sessions in the red.
Carel Industries -- up 0.4 percent -- reported Tuesday that revenues for the first nine months rose 24 percent year-on-year to EUR497.2 million from EUR401.1 million in the same period a year earlier. Excluding the change in scope related to acquisitions of EUR52.1 million and the negative foreign exchange effect of EUR6.8 million, the increase would have been 13 percent.
Industrie de Nora, on the other hand, gave up 1.4 percent, priced at EUR13.14 per share after a 2.5 percent rise in the previous session.
Antares, on the other hand, lost 3.2 percent after a 2.5 percent gain in the eve.
On the Small-Cap, Bialetti closed at a parity at EUR0.27 per share while Softlab rose 6.4 percent instead. The stock - which has not detached its dividend since 2003 - rebounded after two bearish sessions in which it accumulated a loss of nearly 15 percent.
BasicNet - down 0.9 percent - reported Tuesday that its board of directors reviewed results for the first nine months, during which revenues grew 5.3 percent to EUR297.5 million from EUR282.6 million in the same period of 2022. Ebitda increased to EUR44.7 million from EUR44.1 million, a slight change to positive 1.3 percent.
Among SMEs, ESI still hurt, which gave up 6.4 percent and closes its fourth session in a row among the bearish.
NVP--up 0.7 percent--reported Tuesday that it reported revenues up 57 percent year-on-year to EUR19.5 million from EUR12.4 million in the first nine months. The scope of consolidation includes subsidiaries EG Audiovisivi Srl and Produzioni Italia Srl, the latter from Sept. 14, 2023, which contributed revenues of EUR500,000, entirely generated in Italy.
In Asia, the Nikkei finished up 1.2% at 31,949.89, the Hang Seng was in the green 0.9% at 17,244.00, and the Shanghai Composite finished down 0.5% at 3,009.41.
In New York on European night, the Dow closed up 0.7 percent at 33,274.58, the Nasdaq finished up 1.6 percent at 13,061.47 and the S&P 500 closed up 1.1 percent at 4,237.86.
Among currencies, the euro changed hands at USD1.0601 against USD1.0542 recorded in Tuesday's European equities close, while the pound was worth USD1.2176 from USD1.2137 last night.
Among commodities, Brent crude is worth USD85.39 per barrel from USD86.71 per barrel at yesterday's close. Gold, meanwhile, trades at USD1,984.98 an ounce from USD1,986.37 an ounce last night.
Thursday's macroeconomic calendar features manufacturing PMIs from Spain, Italy, France, Germany, the Eurozone, and the UK between 0915 CET and 1030 CET, after French government budget data, due at 0845 CET.
Eyes also on Germany's employment, due at 0955 CET, and the Bank of England decision, due at 1300 CET.
In the afternoon, from the U.S., focus on U.S. durable goods and jobless claims, coming in at 1330 CET, and natural gas inventories, coming in at 1530 CET. The day will close with the Federal Reserve's balance sheet, due at 2130 CET.
By Chiara Bruschi, Alliance News reporter
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