Mib falls to 27,700; purchases on UniCredit

(Alliance News) - The Mib index ended Monday's session down in the 27,700 area, in line with its European peers, as trading rooms continue to assess the economic and major central banks' path after the Federal Reserve's pause and the European Central Bank's hike last week, ahead of the Bank of England's for this Thursday.

Two senior European Central Bank officials said Monday that more interest rate hikes will be needed to contain stubbornly high inflation in the Eurozone.

"We have to continue to depend on data and not to do too much rather than too little," ECB Executive Board member Isabel Schnabel said in a speech in Luxembourg. "We must therefore continue to raise interest rates until we see convincing evidence" of inflation returning to the ECB's 2 percent target, she added.

ECB chief economist Philip Lane added that "it seems that another hike in July is appropriate." Lane added that the ECB's next moves will depend on incoming data and that it is too early to speculate on what policymakers might decide at the September meeting.

The FTSE Mib thus closed down 0.4 percent at 27,754.18.

The Mid-Cap gave up 1.3 percent to 43,234.85, the Small-Cap closed in the red 0.7 percent to 27,410.64, and Italy Growth instead picked up 0.1 percent to 9,132.80.

In Europe, London's FTSE 100 closed down 0.7 percent, Paris's CAC 40 down 1.1 percent, and Frankfurt's DAX 40 marked a 1.0 percent red.

On the highest-capitalization basket in Piazza Affari, Leonardo rallied 0.8 percent. The company announced Monday that the NATO Support and Procurement Agency - NSPA - has awarded Leonardo a contract to supply a new RAT 31 DL/M long-range air defense radar.

UniCredit gained 2.3 percent after letting it know Thursday that it intends to support Nusco, a company active in the production and marketing of interior doors and window frames made of wood, PVC, aluminum and iron under the "Nusco" brand, listed on the Euronext Growth Milan market with two loans totaling EUR2.5 million, guaranteed by SACE.

The board of directors of A2A - down 1.1 percent - passed a framework resolution authorizing the issuance, by April 30, 2026, of one or more unsubordinated, unsecured and non-convertible bonds up to a total maximum of EUR1.65 billion from its EMTN program - established in 2012 - whose total maximum amount will be increased to EUR7 billion from EUR6 billion.

ERG, on the other hand, gave up 1.2 percent after it reported on Friday that it had been upgraded by MSCI Inc. a leading ESG corporate performance research company to a "AAA" rating, an improvement from its "AA" rating in 2022, putting it in the "Leader" category.

Recordati, on the other hand, gave up 1.9 percent to EUR44.40 after a 0.7 percent gain on Friday. The company reported Monday that the NATO Support and Procurement Agency - NSPA - awarded Leonardo a contract to supply a new RAT 31 DL/M long-range air defense radar.

On the Mid-Cap, Rai Way brought home 2.0 percent, following a 0.5 percent decline on Friday evening.

Juventus Football Club--up 1.7%--reported that Tottenham Hotspur FC has exercised its option right to permanently take over Dejan Kulusevki. The Bianconeri will receive EUR30 million, payable over six financial years, for a capital gain to Juventus' coffers of EUR12.8 million.

doValue, on the other hand, gave up 4.0% to EUR4.48, reversing to the downside after five straight sessions among the bullish.

Brunello Cucinelli left 2.7% on the parterre after a 2.2% gain on Friday night.

Maire gave up 1.6 percent after announcing Thursday its participation in Euronext Tech Leaders, the new initiative dedicated to leading, high-growth Tech companies developed by Euronext, the leading pan-European market infrastructure that manages the regulated stock exchanges of Belgium, France, Ireland, Italy, Norway, the Netherlands and Portugal.

On the Small-Cap, It Way rallied more than 12 percent on the back of the green in the last session that closed with a plus 2.6 percent.

Good purchases were also made on Zucchi, which took home 0.9 percent after Friday night's 0.9 percent gain.

Somec, on the other hand, rose 1.3%. On Friday, it reported that its U.S. subsidiary Fabbrica was awarded a new contract for a 34-story building in New York City. The contract is valued at more than USD23 million and consists of the design, manufacture, and installation of more than 12,000 square meters of custom curtain walling intended for a new building to be constructed on Ninth Avenue, an artery on Manhattan's West Side, a few blocks from Madison Square Garden and the Empire State Building.

At the back of the pack, Pierrel gave up 9.1 percent, on the heels of Friday's 3.0 percent red.

Among PMIs, Bellini Nautica gave up 6.1 percent, the subject of profit taking after four bullish sessions.

Deodato Gallery, on the other hand, gave up 4.4%, on the heels of two previous bearish sessions.

Relatech - flat at EUR2.45 - announced Friday that it had entered into binding agreements aimed at acquiring the remaining 40 percent of Sigla Group's share capital, for a total of EUR715,000.

The board of GO internet - down 0.9 percent - on Friday approved the new business plan 2023-2027 drafted in line and continuity with the previous Plan approved on June 8, 2020. The plan forecast revenues between EUR15.5 million and EUR16.5 million, Ebitda between EUR2.5 million and EUR3.0 million, an Ebitda margin between 17 percent and 18 percent, and a negative Net Financial Position between EUR2.8 million and EUR2.0 million.

In New York at the height of trading, the Dow gives up 0.3 percent, the Nasdaq is down 0.7 percent, while and the S&P 500 is in the red by 0.4 percent.

Among currencies, the euro changes hands at USD1.0924 against USD1.0923 on Friday in closing European equities. In contrast, the pound is worth USD1.2799 from USD1.2808 on Friday evening.

Among commodities, Brent crude is worth USD76.41 per barrel versus USD75.78 per barrel at Friday's close. Gold, on the other hand, trades at USD1,955.70 an ounce from USD1,957.42 an ounce Friday night.

On Tuesday's macroeconomic calendar, the interest rate from the PBoC is due at 0315 CEST while from the Eurozone will come trade balance at 0800 CEST, current account balance at 1000 CEST and construction output at 1100 CEST.

From the U.S., at 1430 CEST, will come building permits, while at 1745 CEST a speech by Williams of the FOMC is scheduled.

In the U.S., Avio's results are expected.

By Maurizio Carta, Alliance News reporter

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