(Alliance News) - Major European exchanges -- according to the futures market -- on Monday marked a bullish path, with global market risk appetite strengthened by Friday's U.S. inflation figure. The price index for personal consumption expenditures in the United States rose 3.8 percent year-on-year in May, up from a downwardly revised 4.3 percent increase in April. The data were released Friday by the U.S. Bureau of Analysis.

Excluding food and energy, the PCE price index -- which is the Federal Reserve's preferred indicator for measuring inflation -- rose 4.6 percent from a year ago, compared with market expectations of 4.7 percent and 4.7 percent in April.

In the CME Group platform's FedWatch Tool, using futures also based on the actual federal funds rate or EFFR, confirmation of the rate at the July 26 meeting has a 13 percent probability in the 500/525 bps range. In contrast, the 25 bps hike in the 525/550 bps target is priced at 87 percent.

Japan's Jibun Bank manufacturing PMI released Monday stood at 49.8 in June, unchanged from preliminary estimates, following May's final reading of 50.6, the highest in seven months. This was the fifth contraction in industrial activity this year, with both output and new orders falling, with new export orders falling at the highest pace since February. In response to weakening operating conditions, purchasing activity fell for the 11th consecutive month, and the reduction was the mildest recorded this year.

Thus, the FTSE Mib marks a rise of 65.00 points, after closing up 1.1 percent at 28,230.83 Friday evening.

In Europe, London's FTSE 100 is tied, Paris' CAC 40 advances 6.00 points, and Frankfurt's DAX 40 indicates a rise of 25.00 points.

Among the smaller listings on Friday, the Mid-Cap closed up 0.8 percent at 42,734.60, as did the Small-Cap at 27,041.99, while Italy Growth closed fractionally in the red at 9,074.84.

On the main index in Piazza Affari on Friday evening, led the bullishers was ERG -- up 3.7 percent along with Iveco Group -- which signed Thursday, through its subsidiary ERG Power Generation, an agreement with Achernar Assets, a Swiss investment holding company, to sell the entire capital of ERG Power, owner of the environmentally friendly and highly efficient natural gas-fired Combined Cycle Gas Turbine cogeneration power plant in Priolo Gargallo, Syracuse.

Tenaris advanced 2.8 percent, in its sixth session on the bullish side.

Eni, on the other hand, advanced 2.3 percent. On the stock it is mentioned that Goldman Sachs saw downward to the target price to EUR17.00 from EUR18.00.

Stellantis -- in the green by 0.4 percent -- and Kuniko announced Friday the signing of a binding purchase agreement to secure the supply of 35 percent of cobalt nickel sulfate from Kuniko's nine-year exploration projects in Norway for future production.

In addition, Stellantis reached an agreement to purchase EUR5.0 million of new shares in Kuniko, resulting in a final stake of 19.99 percent and the right to appoint a member of Kuniko's board of directors.

CNH Industrial--up 2.1 percent--also advanced well, reporting that it purchased 1.3 million of its own ordinary shares between June 20 and June 27. The shares were taken over at an average unit price of EUR12.90 or so, for a total value of EUR17.9 million.

On the cadet segment, Mondadori Editore advanced 0.7 percent. The company's board of directors on Thursday reviewed and defined - in light of the more favorable development compared to previous estimates with regard to both the business and the prices of key inputs - the upward revision of the targets for fiscal year 2023.

In detail, the company confirmed the single-digit growth in revenues, adjusted Ebitda is expected to increase high single-digit/low double-digit compared to the previous single-digit estimate, with margins expected to be between 16 percent and 17 percent from the previous 15 percent, and net income is expected to grow by about 20 percent, an estimate doubled from the previous one, due to both operational improvement and the effects of the sale of the stake in Il Giornale.

On the Small-Cap segment, Itway closed up 16 percent after announcing Friday that it has signed a strategic partnership with Mastercard's RiskRecon company through CyberMonks.

This is an exclusive partnership that sees Itway as the only partner in Italy enabled to provide these services with the extension of the exclusive value-added distribution agreement for Mastercard's RiskRecon services in Greece and Turkey. The agreement with Mastercard provides Itway with incremental revenues of EUR6 million over three years.

I Grandi Viaggi -- in the red by 2.6 percent -- reported Thursday that its board of directors approved results for the first half of the year, which runs from Nov. 1, 2022 to April 30, 2023, reporting revenues at EUR12.7 million from EUR7.1 million recorded as of April 30, 2022.

Net loss amounted to EUR3.8 million down from EUR5.4 million on April 30, 2022.

Borgosesia retreated 0.3 percent after reporting Friday that it had finalized the EUR17.5 million purchase of Hybrid Tower Mestre, a skyscraper built on the areas of the public transport company ACTV's old depot.

Olidata finished 1.2 percent in the red. The company announced Wednesday that board members had resigned following the change of control that took place with the entry of the Rufini family.

Among SMEs, Planetel closed in the green by 1.8 percent. The company reported that Friday saw the closing of the transaction to acquire 100 percent of the share capital of Trivenet, which took place through the purchase of 100 percent of the shares held by Finvis. The sale of 100% of Trivenet in favor of Planetel took place for the total consideration - subject to a negative or positive price adjustment mechanism - of approximately EUR750,000.

RedFish LongTerm Capital - trading at a par at EUR1.50 - made its debut on the Italian stock exchange Friday after an IPO of just over EUR4.0 million which, incase the over-allotment is exercised, would rise to EUR4.5 million.

In New York on Friday evening, the Dow closed in the green by 0.8 percent, the Nasdaq was up 1.5 percent, and the S&P 500 was up 1.2 percent.

Among currencies, the euro changed hands at USD1.0915 against USD1.0916 in Friday's European equities close. In contrast, the pound is worth USD1.2699 from USD1.2712 on Friday evening.

Among commodities, Brent crude is worth USD75.17 per barrel versus USD74.95 per barrel at Friday's close. Gold, on the other hand, trades at USD1,918.76 an ounce from USD1,915.37 an ounce Friday night.

On Monday's economic calendar, the Italian manufacturing purchasing managers' index for June will be released at 0945 CEST. Between 0950 CEST and 1030 CEST, that of France, Germany, the Eurozone and the UK are also scheduled.

In the afternoon, the same data will arrive from the US at 1545 CEST.

No special events are scheduled in the Piazza Affari calendar, however.

By Maurizio Carta, Alliance News reporter

Comments and questions to redazione@alliancenews.com

Copyright 2023 Alliance News IS Italian Service Ltd. All rights reserved.