(Alliance News) - Piazza Affari closed lower on Friday - veering into the red in the second half of the session - ending a five-session bullish trend with the index resting the bar at 28,687 and with trading rooms increasingly alert to the possible path by the Federal Reserve after the U.S. inflation report surprised markets with a figure below estimates.
Although markets are discounting a 25 basis point increase for the late July meeting, most observers are pushing the assumption that the rate hike cycle-economic data permitting-is nearing its end.
As written in a focus by Dutch bank ABN-AMRO on Thursday, "the report gives us more conviction that July will be the last hike in the current cycle, with a September hike looking unlikely assuming current data trends persist."
"Our baseline scenario continues to be that the Fed begins to cut rates next March. However, we continue to see the risk that services inflation will maintain broader price growth above the Fed's medium-term target, with the risk therefore that rates will remain restrictive for longer," concluded the Dutch bank economist.
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Thus, the FTSE Mib closed 0.4 percent in the red at 28,663.30.
Among other European exchanges, Paris' CAC 40 closed up 0.1 percent, Frankfurt's DAX 40 gave up 0.2 percent, and London's FTSE 100 closed just above par.
Among the smaller Milanese listings, the Mid-Cap fell 0.2% to 42,778.21, the Small-Cap finished 0.3% in the red at 26,608.08 while Italy Growth closed 0.2% in the red at 9,086.52.
Among blue chips, FinecoBank advanced 1.5 percent, in its third bullish session.
Banca Monte dei Paschi di Siena rose 1.7 percent, marking its sixth straight session on the bullish side.
Prysmian Group -- down 1.3 percent -- on Thursday signed a renewal of a long-term sustainability linked revolving credit facility worth EUR1 billion with a pool of leading domestic and international banks.
Eni, on the other hand, gave up 1.4 percent, subject to profit taking after five sessions closed on the bullish side.
Subsidiary Saipem also lost ground, with the stock contracting 1.7 percent. Of note, Marshall Wace on Wednesday raised its short position on the stock to 0.6 percent from 0.48 percent.
On the cadet segment, strength on the Cementir Holding stock, which took home 4.0% to EUR7.72 per share putting it into its fourth straight session in the black.
Juventus Football Club - up 0.8 percent - confirmed Thursday evening that it had begun the procedure to exit the Super League project. The company reiterated that it is aware of the need for Real Madrid, FC Barcelona and the other clubs involved in the project to give their consent for the withdrawal to take effect.
Credito Emiliano, on the other hand, rallied 3.2 percent, with new price at EUR7.457 per share. High trading volume was recorded on the stock, amounting to more than 519,000 pieces compared to a three-month daily average of about 216,000.
Brunello Cucinelli closed 3.6 percent in the red, following up its eve's decline of 0.2 percent. It should be noted that the company reported Thursday that it closed the first half of the year with revenues up 31 percent year-on-year to EUR543.9 million from EUR415.4 million in the same period last year. Specifically, in Italy, sales increased 24 percent to EUR60.9 million, in Europe -- Italy excluded -- they grew 23 percent to EUR141.9 million, in the Americas they improved 24 percent to EUR189.0 million, and in Asia they rose 56 percent to EUR152.2 million.
Industrie de Nora, on the other hand, gave up 4.1 percent to EUR20.34 per share, despite the fact that it reported Friday that its subsidiary De Nora Italy Hydrogen Technologies Srl - DNHIT - and the Ministry of Enterprise and Made in Italy signed the concession decree granting DNHIT an amount of EUR32.25 million in the form of a contribution to the cost of the Gigafactory project in joint venture with Snam Spa from the IPCEI Fund.
On the Small-Cap, Tessellis closed up 7.5 percent, on the heels of eve's gain, albeit by 0.6 percent.
Restart, on the other hand, raises the bar by 4.6 percent. The stock -- which has been missing the ex-dividend since 2007 -- has posted a minus 31 percent or so since the beginning of the year.
Banca Profilo closed up 1.0 percent after announcing on Friday that it has transposed the guidelines that parent company Arepo BP has identified as strategic directions for the development of the group's activities over the next three years, which will be translated into a new business plan 2024-2026 expected by the end of the year. The main goals of the new plan are to leapfrog the size of Private and Investment Banking activities aimed at optimizing the profitability of the businesses, consolidate the low-volatility earning capacity developed by Finance, strengthen the investments made in fintech, with a focus on artificial intelligence and digital assets, and further increase shareholder remuneration by leveraging soundness and profitability.
Among the negative notes, Softlab closed down 4.1 percent, with price at EUR1.64 per share. The stock hit a new 52-week low in the day at EUR1.58 per share.
Red also for d'Amico, in its fifth consecutive session on the bearish side with a 3.6 percent drop.
Among SMEs, Datrix closed up 8.0 percent, with volume of nearly 137,000 traded against a three-month daily average of about 8,800.
Casta Diva Group rallied 9.5 percent, after announcing Thursday that its board had decided to detach an extraordinary dividend totaling EUR4.0 million.
Growens appreciated 6.6 percent after announcing Thursday in the evening that its board of directors approved the guidelines of a transaction involving the promotion, subject to obtaining the necessary authorization from the shareholders' meeting, of a voluntary partial tender offer for a maximum of 2.6 million of its own ordinary shares corresponding to about 17 percent of the total number of ordinary shares issued for a unit consideration of EUR6.80 equal to a maximum total consideration of EUR18.0 million.
Health Italia closed down 4.1 percent after announcing Thursday that it had approved its 2023-2026 business plan, forecasting revenues between EUR50.0 million and EUR52.0 million at the end of the plan. Ebitda is estimated between EUR12.0 million and EUR14.0 million and positive Net Financial Position between EUR15.0 million and EUR16.0 million.
In New York on Thursday, the Dow Jones is rising 0.2 percent as is the S&P, while the Nasdaq is up 0.4 percent.
Among currencies, the euro is changing hands at USD1.1242 against USD1.1191 on Thursday in closing European equities, while the pound is worth USD1.3121 from USD1.3100 on Thursday evening.
Among commodities, Brent crude is worth USD79.96 per barrel versus USD80.41 per barrel at Thursday's close. Gold, on the other hand, trades at USD1,958.73 an ounce from USD1,960.57 an ounce on Thursday evening.
On Monday's macroeconomic calendar, at 0400 CEST, China's Gross Domestic Product and unemployment rate are due while, at 1000 CEST, from Italy it will be the turn of the trade balance.
In the afternoon, from the U.S., there will be an auction of three- and six-month Treasury bonds at 1730.
Among companies in the Piazza Affari, no particular announcements are expected.
By Maurizio Carta, Alliance News reporter
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