Mib down; Lagarde 'whispers' cut in June

(Alliance News) - The Mib closed bearish on Wednesday, with the point bar in the 34,400 area, extending losses from the previous session and in line with other European exchanges as traders assess the monetary and economic outlook.

Markets are positioning themselves on a cut by the ECB for the June meeting, while for the Fed the move is expected in September, albeit with not a full but 60 percent probability, according to CME platform futures.

Indeed, ECB President Christine Lagarde has indicated that an interest rate cut is likely next month, as rapid growth in consumer prices is now largely contained.

"If the data that we receive reinforce the level of confidence that we have, which is that we will be able to deliver 2 percent inflation in the medium term, which is our goal, our mission, our duty, then there is a strong probability" of a move on June 6, she told Irish broadcaster RTE One in a TV interview broadcast Tuesday.

Thus, the FTSE Mib closed in the red by 0.4 percent at 34,460.52, the Mid-Cap below par at 47,724.57, the Small-Cap closed in the green by 0.2 percent at 29,081.06, while Italy Growth is giving up 0.4 percent at 8,213.41.

In Europe, Paris' CAC 40 gave up 0.6 percent, London's FTSE 100 closed 0.6 percent in the red, and Frankfurt's DAX 40 gave up 0.3 percent.

On the Mib, Enel closed with a minus 0.9%, in its fifth session with a bearish candle.

Italgas, on the other hand, is giving up 1.7 percent, in its third session with a negative balance.

Red also for Saipem, which ended the session 1.8 percent in the red, breaking a six-session uptrend.

Stellantis gave up 0.2 percent after ACEA, the European Automobile Manufacturers' Association, released EU car sales in April. The group reported 1.7 percent year-on-year growth while total registrations in the EU market were up nearly 14 percent from April 2023.

STMicroelectronics, on the other hand, advanced 3.1 percent to EUR38.83 per share, with the stock following up on eve's negative balance of 2.7 percent.

In contrast, Banca Monte dei Paschi advanced 2.3 percent to EUR5.09 per share, after two sessions among the bearish.

In the cadet segment, El.En. advanced 3.8%, after two sessions among the bearish.

It did even better, Anima Holding, which brought home a positive balance of 4.3 percent. The stock, since the start of 2024, has increased its capitalization by more than 20 percent.

Fincantieri -- in the red by 1.2 percent -- announced on Monday that it had signed an agreement with Edge, one of the world's leading advanced technology and defense groups, formalizing the launch of Maestral, the joint venture created between the two companies in the Abu Dhabi-based shipbuilding sector. The signing of the agreement was followed by the announcement of a major order for 10 technologically advanced 51-meter OPV offshore patrol vessels by the UAE Coast Guard Forces, worth EUR400 million.

Webuild - in the red by 1.3 percent to EUR2.28 - on Tuesday disclosed that the new La Chapelle ashlar factory in France, serving Lot 2 of the base tunnel of the AC/AV Turin-Lyon railway line, will be operational in June

Cembre, on the other hand, closed down 3.3 percent after two bullish sessions.

OVS also gave way, registering a minus 0.8 percent, on the heels of the previous session's 0.8 percent red. The company-which is regularly continuing with its buyback plan-ultimately announced that it announced on Monday that it had bought back 49,414 shares at an average price of EUR2.69130 for a total value of about EUR133,000.

On the Small-Cap, Alkemy advanced 7.2 percent to EUR9.54, rebounding after five sessions among the bearish.

Datalogic closed ahead 6.2% at EUR6.20, breaking the three-session bearish mini-trend.

CY4Gate rallied 0.6 percent, following a 3.5 percent green in the previous session. The company announced Tuesday that it has been awarded three international research calls under the European Defense Fund and Digital Europe Program worth a total of about EUR1.7 million over three years from 2025, boosting the group's backlog.

At the back end, Aedes gave up 3.2 percent, in its fourth bearish session.

Sabaf, on the other hand, gave up 0.8 percent, following a 1.1 percent loss on the eve of the day that interrupted an eight-session bullish trend.

Among SMEs, Casta Diva advanced more than 11 percent -- suspended several times in volatility auction -- still rearing its head after nine sessions among the bearish.

Caribbean Company advanced more than 10 percent, with quarterly accounts expected on Monday.

SolidWorld Group advanced 6.0 percent after announcing Wednesday that it had filed a patent through its subsidiary Bio3DPrinting for the first 'boosted customization' of a human tissue, starting with the patient's original cells by creating ad hoc heads to replicate individual tissue types.

DHH -- in the green by 3.0 percent -- reported Wednesday that the board approved first-quarter figures, ending the period with net income that rose to EUR1.2 million from EUR34,000 last year. Revenues from consolidated sales grew to EUR8.9 million from EUR8.1 million in Q1 2023, up 10 percent.

At the back of the pack, Culti Milano gave up 7.0%, in its third bearish session.

In contrast, Eles gave up 3.6%, retracing after two bullish sessions.

In New York on Friday, the Dow is giving up 0.2%, the Nasdaq is up 0.1%, and the S&P is marking minus 0.1.

Among currencies, the euro changes hands at USD1.0835 from USD1.0855 on Tuesday in closing European equities while the pound is worth USD1.2727 from USD1.2711 on Tuesday evening.

Among commodities, Brent crude is trading at USD82.42 per barrel from USD82.44 per barrel Tuesday night. Gold, on the other hand, trades at USD2,389.77 an ounce from USD2,421.50 an ounce Tuesday night.

On Thursday's economic calendar, at 0130 CEST, Japan's services and manufacturing PMI is due, with the data being available for Germany at 0930 CEST, for the Eurozone at 1000 CEST, and half an hour later for the UK.

From the US, at 1430 CEST, data on unemployment claims are due, while at 1545 CEST it will be the turn of the services and manufacturing PMI. In the evening, at 2100 CEST, a speech by Bostic of the FOMC is scheduled.

On the corporate calendar, First Capital's quarterly results are expected.

By Maurizio Carta, Alliance News reporter

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