(Alliance News) – Piazza Affari closed lower in the first session of the week after Crhsitine Lagarde made it clear that more rate hikes by the European Central Bank could come at upcoming meetings of the Frankfurt-based institution.
“As the energy crisis eases, euro area governments should withdraw related support measures in a timely and concerted manner to avoid increasing inflationary pressures in the medium term, which would require a more forceful monetary policy response,” Lagarde told the European Parliament’s ECON committee in Brussels.
“The ECB welcomes the European Commission’s recommendation to member states to reduce in 2023 the measures taken in response to the energy price shock,” the bank’s number one continued.
The FTSE Mib closed down 0.8 percent to 26,856.85, the Mid-Cap gave up 0.7 percent to 42,541.11, the Small-Cap lost 0.4 percent to 27,384.65, and Italy Growth was down 0.2 percent to 9,142.15.
In Europe, London’s FTSE 100 closed down 0.1 percent, Paris’ CAC 40 gave up 1.0 percent and Frankfurt’s DAX 40 lost 0.6 percent.
Lagarde’s words had a negative effect primarily on banks, with UniCredit closing at the bottom of Piazza Affari’s largest-capitalization list, down 2.3%. Also down was Fineco, in the red by 2.1 percent.
Among lenders, only Monte dei Paschi di Siena gained ground sharply, up 1.6 percent.
On the lower end of the list, Prysmian, Leonardo, and CNH Industrial hurt, down between 2.4 percent and 1.1 percent, reflecting the negative day for the entire industrial sector.
Poorly performing Pirelli, down 0.5 percent. Tomorrow will be a very important day for the global tire giant, one of the world’s best-known Italian luxury brands. The top management of Camfin and Pirelli are scheduled to be heard at Palazzo Chigi as part of the procedure to analyze the possible use of Golden Power, through which the government, even without having a single share in hand, can block corporate operations that it considers harmful to Italy’s strategic interests.
In the present case, for example, this could result in the freezing of voting rights in the Chinese shareholder’s meeting, in favor of the Tronchetti Provera family holding company.
On the Mid-Cap, MFE’s A shares that lost 0.4 percent and B shares that gave up 0.7 percent after Czech group PPF, the second-largest shareholder right behind the former Mediaset, rose to 15.04 percent of Prosiebensat1, reviving interest around the German broadcast.
PPF told the market that it holds a total of 11.6 percent of the Bavarian group’s voting rights. As of mid-May, MFE was reported to have a 28.87 percent stake between shares and financial instruments, accounting for 29.7 percent of the voting rights.
Like Mediaset, the Kellner family holding company proclaims itself to be a long-term investor “and supportive of the company.” PPF is also historically linked to Czech billionaire Daniel Kretinsky, who is engaged to one of the daughters of Peter Kellner, the PPF founder who died in a helicopter crash in Alaska in 2021.
Edison-which quotes only savings shares-rose 0.6 percent after reporting Monday that on June 2 Moody’s agency confirmed the company’s long-term rating at Baa3 and changed the outlook from negative to stable, following an equivalent change in the outlook of EDF’s Baa1 long-term rating.
The confirmation of Edison’s Baa3 rating and the change in outlook “reflect the strong improvement in the company’s credit profile, following the complete exit from E&P activities and the strategic focus on gas and renewable capacity development in Italy,” a company note said.
The rating also takes into account “the strength of the company’s balance sheet, which is improving; favorable earnings dynamics and increased cash generation, thanks to the increase in electric generation capacity; optimization of flexibility and adequate indexing of gas contracts; as well as long-term exposure to wholesale electricity prices in Italy.”
Among the lower-capitalization companies on the Milan Stock Exchange, KME Group dropped 0.8 percent after it announced that, following the fulfillment of the conditions precedent stipulated in the agreement, KME SE, its main subsidiary, has executed the agreement signed with Golden Dragon Precise Copper Tube Group concerning the sale of its 50 percent stake in the KMD Holdings joint venture and the purchase of 100 percent of the shares in KMD Connectors Stolberg.
The execution of the transaction, as stipulated in the contract, resulted in net proceeds of approximately USD53 million, of which approximately USD43 million related to the purchases and sales of the holdings and the payment of commercial positions, as well as USD10 million for the repayment of outstanding loans.
Civitanavi Systems closed at a breakeven. The company initiated the share buyback program authorized by the shareholders’ meeting on April 27.
Thus, from June 5 to October 5, 2024, buybacks of up to 1.5 million treasury shares, corresponding to about 4 percent of the company’s share capital, may be made for a maximum amount of EUR8.7 million.
Among SMEs, Technoprobe gave up 1.1 percent after the CEO, Stefano Felici, sold one million shares in the company. The shares were sold at a price of EUR7.2 for a total consideration of EUR7.2 million.
Italia Independent gained 14 percent, posting the best performance on the list, while Fenix Entertainment followed with a 10 percent rise.
In New York, the Dow is down 0.2% to 33,699.33, the Nasdaq is up 0.3% to 13,284.41, and the S&P 500 is up 0.2% to 4,290.17.
Among currencies, the euro changes hands at USD1.0719 versus USD1.0726 in Friday’s European equities close. In contrast, the pound is worth USD1.2419 from USD1.2475 on Friday evening.
Among commodities, Brent crude is worth USD77.13 per barrel versus USD75.83 per barrel Friday night. Gold, on the other hand, trades at USD1,958.70 an ounce from USD1,981.55 an ounce Friday night.
Tuesday’s macroeconomic calendar includes the release of British retail sales data at 0101 CEST, before Japanese household consumption numbers at 0130 CEST.
In Europe, focus on Germany’s factory orders, due at 0800 CEST, and Spain’s industrial production, due at 0900 CEST, half an hour before the release of Italy, France, Spain and Eurozone construction PMIs. The same indicator will arrive for the United Kingdom at 1030 CEST. For the eurozone, eyes also on retail sales, due at 1100 CEST.
From the US, the EIA’s energy forecast, at 1800 CEST, and weekly oil stocks, at 2230 CEST, are expected.
Among the companies in the Piazza Affari, no special events are expected.
By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter
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