(Alliance News) - European equity markets-as largely anticipated by futures-opened on a bearish trend amid ongoing tensions in the Middle East and the re-emergence of a narrative of higher U.S. interest rates for longer.

At the moment, markets expect less than two rate cuts by the Fed this year, with officials indicating there is no rush to cut borrowing costs as the economy shows signs of resilience.

The latest data revealed an unexpected rise in the British unemployment rate, while in China, first-quarter GDP exceeded expectations; however, weak March data increased concerns about the country's economic recovery.

The FTSE Mib opened trading 1.6 percent in the red at 33,409.33.

In Europe, London's FTSE 100 is giving up 1.2 percent, Paris' CAC 40 is in the red by 1.4 percent, and Frankfurt's DAX 40 is giving up 1.3 percent.

Among smaller listings, the Mid-Cap is giving up 1.3 percent to 46,353.28, the Small-Cap is down 1.1 percent to 27,748.81, and Italy Growth is giving up 0.5 percent to 8,048.61.

On the Mib, Prysmian -- down 2.2 percent -- announced Monday that it has entered into a merger agreement under which it will acquire Encore Wire for USD290.00 per share. The price per share of USD290.00 represents a premium of about 20 percent over the 30-day weighted average as of Friday and about 29 percent over the 90-day weighted average as of the same reporting date. The transaction values Encore Wire at about EUR3.9 billion.

FinecoBank, on the other hand, is giving up 2.0 percent, after 0.6 percent green in the previous session.

Inwit - in the red by 0.8 percent - reported Monday that it bought back its own ordinary shares between April 8 and 12 for a total consideration of EUR3.9 million.

Banca Monte dei Paschi di Siena - in the red by 0.5 percent - reported Monday that rating agency DBRS Ratings GmbH raised the bank's ratings by two notches. DBRS raised the standalone intrinsic assessment rating, the long-term issuer rating and the long-term senior debt rating to 'BB (high)' from 'BB (low)' and the long-term deposit rating to 'BBB (low)' from 'BB.' The subordinated debt rating was upgraded by three notches to 'BB (low)' from 'B (low)'.

Terna -- flat at EUR7.37 -- announced Monday that it had signed an amendment and restatement agreement to increase the amount of the ESG-linked revolving credit facility to EUR2.26 billion. The credit facility had been signed in May 2023 for EUR1.81 billion, entered into with a pool of financial institutions as joint mandated lead arrangers: Intesa Sanpaolo Spa, BNP Paribas SA, Banco Santander SA, Cassa Depositi e Prestiti Spa, UniCredit Spa and SMBC.

On the MIdCap, Intercos is giving up 2.8 percent, after two sessions closed with bullish candles.

OVS -- on the losing side by 0.5 percent -- announced Monday that between April 8 and 12 it bought 1.4 million of its own ordinary shares for the average unit price of EUR2.2969 and a total value of EUR3.3 million. Thus, the company holds 35.5 million shares or 12 percent of the share capital.

Comer Industries, on the other hand, rises 0.3 percent, after 0.9 percent green in the previous session.

Arnoldo Mondadori Editore -- up 0.2 percent -- reported Monday that an agreement was signed for the acquisition by its subsidiary Rizzoli International Pubblications Inc. of 100 percent of the share capital of Chelsea Green Publishing in Vermont in the U.S., and, in the UK, through its subsidiary Chelsea Green Publishing UK Ltd.

On the SmallCap, well Bastogi, which brings the price up 4.2 percent to EUR0.3940. Lasocietà reported Friday that it ended 2023 with a net profit of EUR2.9 million, which compares with the previous year's figure of EUR32.4 million. Italy's oldest surviving company reported EBITDA of EUR16.5 million from EUR54.5 million a year earlier.

BF -- up 1.1 percent -- reported Monday that its 2023 production value rose to EUR1.39 billion from EUR1.12 billion a year earlier. The figure is almost in line with the estimated 2023 production value of EUR1.40 billion. The reported growth, which can be attributed not only to the different period of inclusion in the scope of consolidation of consolidated companies but also to integration effects with investee companies, discounts a general deflationary trend.

Aquafil, on the other hand, is giving up 3.9 percent, bringing its price to EUR2.93 per share.

Among SMEs, boost on Alfonsino, which is up 6.8 percent, rebounding after two sessions in which it closed with heavy selling.

Implants, on the other hand, is giving up 7.1 percent, following a 3.9 percent red on eve.

In New York last night, the Dow closed down 0.7 percent, the Nasdaq fell 1.8 percent, and the S&P 500 left 1.2 percent on the parterre.

Among currencies, the euro changed hands at USD1.0612 from USD1.0627 on Monday in European equities closing while the pound was worth USD1.2434 from USD1.2450 on Monday evening.

Among commodities, Brent crude is worth USD90.56 per barrel from USD89.29 on Monday evening and gold trades at USD2,386.97 from USD2,338.38 last night.

Tuesday's macroeconomic calendar has UK earnings and unemployment data coming in at 0800 CEST, along with Germany's wholesale prices, while at 1000 CEST comes Italian inflation. An hour later, eyes on Italy's trade balance and the Zew index on economic sentiment in Germany.

Also at 1100 CEST, eyes on the Eurozone trade balance.

From the U.S., the day's catalysts will be data on building permits, due at 1430 CEST, and data on industrial production, expected at 1515 CEST on a day packed with incoming comments from several Federal Reserve members. At 2230 CEST, it closes with weekly oil stocks.

Among the companies in the Piazza Affari, the results of Saccheria F.lli Franceschetti are expected.

By Maurizio Carta, Alliance News senior reporter

Comments and questions to redazione@alliancenews.com

Copyright 2024 Alliance News IS Italian Service Ltd. All rights reserved.