Mib closes at parity; buying on Telecom Italia

(Alliance News) - The Mib index pared its initial losses on Wednesday by closing just below par near 27,200 as investors continued to monitor the negotiations between the US government and the Republican opposition over the US debt ceiling. Meanwhile, eurozone inflation was confirmed at 7 percent in April, slightly above the previous month's 13-month low of 6.9 percent and clearly well above the ECB's target of 2 percent.

On Wednesday in the CME Group platform's FedWatch Tool, using futures also based on the actual federal funds rate, or EFFR, the confirmation of the rate at the June 14 meeting has a 73 percent probability priced in for confirmation in the 500/525 bps range. In contrast, the 25 bps hike in the 525/550 bps target is priced at 27%.

Thus, the FTSE Mib closed fractionally in the red at 27,196.46, the Mid-Cap gave up 0.3 percent to 43,055.22, the Small-Cap in the green by 0.3 percent to 27,957.57, and Italy Growth is in the green by 0.3 percent to 9,128.79.

In Europe, London's FTSE 100 closed in the red by 0.4 percent, Paris' CAC 40 in the red by 0.1 percent, and Frankfurt's DAX 40 in the green by 0.3 percent.

On the main list Telecom Italia closed in the green by 1.4 percent. The stock was among the few bullish in an almost completely bearish list. The stock benefited from the news given by Dario Scannapieco, CEO of Cassa Depositi e Prestiti, who denied CDP's withdrawal from the race for TIM's network. "We are working with Macquarie to answer the questions posed by the TIM board of directors and to review the bid for the network," Scannapieco said in an interview with Bloomberg TV, but he did not comment on the news that Macquarie would not be willing to submit a joint bid with KKR.

On this point, the CDP CEO explained that it is not clear how the bid for TIM's network will be revised but he did not rule out the possibility of working together with KKR, which would also be a welcome possibility for the Italian government.

Good buys also on Iveco, which took home 2.1 percent, rearing its head again after four consecutive sessions among the bearish. On the stock it is mentioned that Citadel Advisors on Tuesday cut its short on the stock to 0.77 percent from 0.82 percent previously.

Also in the green is Interpump, which picked up 1.4 percent with new price at EUR51.52, following eve's green with 3.8 percent.

DiaSorin went down 3.8%, with new price at EUR101.55 after eve's 0.7% gain.

FinecoBank, on the other hand, gave up 1.8 percent after eve's 2.1 percent gain. On the stock it is reported that a few days ago Berenberg cut its target price to EUR17.00 from EUR19.00 with a 'buy' recommendation.

Rear-ends also for Amplifon, which left 2.3 percent on the parterre, closing for the third session in a row on the bearish side.

On the Mid-Cap, strength on LU-VE, which places the bar up by 1.6 percent, resisting the bearish current that also prevails in this segment after the 1.1 percent green on eve.

Saras also advances well, with the oil company closing up 1.3 percent after two bearish sessions.

High quarters also for Industrie de Nora, which carries the bar up 1.2 percent. On the stock it is mentioned that Citadel Advisors raised short position to 0.61 percent from 0.51 percent.

Seco instead retreats 1.6 percent, positioning itself at the bottom of the list, heading for the third session to close on the bearish side.

Ascopiave, on the other hand, retreats 3.0 percent to EUR2.62, on the heels of the 1.1 percent red registered on the eve of the session.

Tod's, on the other hand, is up 0.9% to EUR39.54, following last night's 1.1% gain.

On the Small-Cap, good session for Basicnet, which rose 0.7% to EUR5.72 per share, with the company regularly engaged in its buyback program. Most recently, it announced Monday that it had purchased 11,350 of its own ordinary shares for a total value of EUR63,000 or so.

Advancing well is Bialetti, which scores a plus 9.4 percent with price at EUR0.2560 after a 0.4 percent gain on the eve of the event.

Autostrade Meridionali lost ground, which retreated 6.8 percent bringing its month-on-month liabilities over 39 percent.

Among SMEs, red for Fenix Entertainment, which gave up more than 11%, closing at its yearly low at EUR0.1850.

Farmacosmo, on the other hand, gives up more than 13%, on the heels of the eve contraction that closed at minus 4.3%.

Among the positive notes was Erredue, which rose instead 4.5 percent to EUR10.20 per share.

In New York, the Dow is giving up 0.5 percent, the Nasdaq is retreating with 0.6 percent, and the S&P 500 is stepping back 0.5 percent.

Among currencies, the euro changes hands at USD1.0834 versus USD1.0864 at Tuesday's close. In contrast, the pound is worth USD1.2482 from USD1.2492 last night.

Among commodities, Brent crude is worth USD76.50 per barrel versus USD75.06 per barrel Tuesday evening. Gold, on the other hand, trades at USD1,981.99 an ounce from USD1,998.29 an ounce at Tuesday's European equities close.

On Thursday's macroeconomic calendar, Japan's trade balance is due at 0450 CEST. In the morning, at 1100 CEST comes ECB President Christine Lagarde's speech.

At 1430 CEST, from the US, it is the turn of unemployment benefit claims. At 1730 CEST, there is an auction of Treasury bonds with 4- and 8-week maturities.

Among the companies in Piazza Affari, the results of Cover 50, Health Italia, SIT and Triboo are expected.

By Maurizio Carta, Alliance News senior reporter

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