(Alliance News) – Major European stock markets close lower on Tuesday, with luxury sluggishly weighing down the stock markets.
Thus, the FTSE Mib closes down 0.5 percent to 27,174.97, Mid-Cap down 0.7 percent to 42,742.02, Small-Cap rises 0.1 percent to 27,975.69, while Italy Growth gives up 0.2 percent to 9,158.13.
In Europe, London’s FTSE 100 ends down 0.1 percent, Paris’ CAC 40 gives up 1.3 percent, and Frankfurt’s DAX 40 gives up 0.5 percent.
“With the clock continuing to tick toward the June 1 U.S. debt ceiling deadline and U.S. policymakers no closer to a deal, European markets are turned downward, with the luxury sector suffering after Monday’s strong performance,” commented Michael Hewson, Chief Market Analyst at CMC Markets.
“Overseas, U.S. markets are beginning to retreat as the outlook on interest rates and economic slowdown begins to gain traction, with a stronger U.S. dollar and higher yields beginning to act as a drag on risk.”
In macroeconomic news, S&P Global’s indexes for the United States indicated that the private sector grew in May driven by services.
The latest reading signaled the fastest pace of expansion in the country’s private sector since April 2022, as growth in the services sector accelerated to a 13-month high, while manufacturing output increased only marginally.
For manufacturing, the reading indicated the largest contraction in three months and a new deterioration in operating conditions. The decline was mainly due to weak demand and a reduced need to hold back inputs as delivery times improved and new orders flowed in less.
On the main list in Piazza Affari, Banca Monte dei Paschi di Siena rises 3.2 percent, but it is Saipem that takes the top spot with a 3.6 percent gain. Other oil Tenaris is among the best, up 1.4 percent.
Mediobanca is in the red by 0.3 percent on the day after it signed an agreement with Banca Ifis — down 0.5 percent on the Mid-Cap — to enter into a long-term partnership to manage impaired loans.
According to the agreement, Banca Ifis will take over from Mediobanca, for a consideration of EUR100 million, Revalea Spa, a company created in 2022 from the spin-off of NPLs resulting from the acquisition of non-performing loan portfolios, a business that is no longer among Mediobanca Group’s core activities.
The performance of luxury goods in Piazza Affari remains noteworthy, but for the opposite reasons than on Monday, as the major stocks drag down the listings: on the Mib Moncler gives up 5.4 percent.
On the Mid-Cap, Brunello Cucinelli gives up 3.9%, Salvatore Ferragamo loses 2.0% and Tod’s 1.4%.
Juventus rises 2.5%. Yesterday the club received a ruling from the Court of Appeal of the Italian Football Federation (Federazione Italiana Giuoco Calcio) penalizing it by 10 points in the standings. Acquitted, however, were the seven executives for whom the federal prosecutor had requested eight months of inhibition.
“The company awaits the publication of the grounds and reserves the right, in defense of its interests, to consider an appeal to the Collegio di Garanzia dello Sport, within the terms provided by the Sports Ordinance,” is the only comment released by the company.
Fincantieri — in the red by 2.1 percent — on Friday reported that the U.S. Department of Defense awarded Fincantieri’s U.S. subsidiary, Marinette Marine, a contract to build the fourth “Constellation” class frigate, worth about USD526 million, for the U.S. Navy.
The contract for the first frigate and option for 9 additional ships, signed in 2020, has a total value of about USD5.5 billion and includes after-sales support and crew training.
Among the small-cap companies, Somec gives up 0.7 percent. The company announced Tuesday that its U.S. subsidiary Fabbrica has won new orders in the U.S. totaling USD13.8 million, which will be carried out in collaboration with Somec’s Trades division, “thus benefiting from the important synergies fostered by belonging to the group,” the company explained.
Banca Profilo–up 3.8 percent–reported Tuesday that parent company Arepo BP and Twenty First Capital, a French alternative investment fund management company and limited partner and portfolio manager of the French-law fund Fonds Archimedes, have reached a conditional binding agreement to buy and sell a number of Banca Profilo shares held by Arepo equal to 29 percent of its share capital, net of treasury shares.
Esprinet gives up 0.1 percent after announcing on Monday, purely for deflationary purposes of a potential long-lasting tax dispute, that it has signed an agreement with the Internal Revenue Service aimed at settling out-of-court the disputes raised on VAT in relation to tax periods from 2013 to 2017.
Based on the settlement agreement reached, the company will have to pay a total amount of approximately EUR33.2 million and, therefore, against an overall original claim of more than EUR220 million, the company will bear an actual charge, in terms of VAT and related penalties, of less than 14 percent of that claim, plus accrued interest. The amounts due will be paid by the company in installments over a maximum of five years, with equal quarterly payments.
On the alternative capital market of the Italian stock exchange, Alfonsino climbs 13 percent after reporting that first-quarter revenues rose 9 percent year-on-year to EUR1.2 million from EUR1.1 million in the same period last year.
The company also reported that the figure on the total number of orders, at approximately 132,779, is down 7% from the previous year, when 142,162 orders were recorded, a function of the estimated 6% growth in the average shopping cart – to EUR24.07 from EUR22.81 – and revenue per order, which stood at EUR9.20 from EUR7.91, resulting in a 16% improvement.
The board of directors of Italian Design Brands — up 1.2 percent — on Tuesday approved the group’s results as of March 31, 2023, reporting revenues of EUR62.9 million in the first quarter of the year, up 81 percent from EUR34.9 million in the same period 2022.
Pro forma adjusted net income amounted to EUR5.4 million up 187% from EUR1.9 million in the same period 2022, accounting for 8.1% of total pro forma revenues.
Eles gains 0.7 percent. The company ended the first quarter with revenues of EUR6.3 million, up 36 percent from the same period last year. On a like-for-like basis, thus taking into account the acquisition of Campera Electronics Systems Srl from January 2022, they rise to EUR4.9 million or 6 percent from EUR4.7 million as of March 31, 2022.
In New York at the height of trading Tuesday, the Dow is in fractional green, the Nasdaq is down 0.2 percent, as is the S&P 500.
Among currencies, the euro changes hands at USD1.0778 versus USD1.0800 at Monday’s close. In contrast, the pound is worth USD1.2425 from USD1.2424 last night.
Among commodities, Brent crude is worth USD77.31 per barrel versus USD76.00 per barrel on Monday evening. Gold, on the other hand, trades at USD1,966.95 an ounce from USD1,974.15 an ounce Monday night.
On Wednesday’s macroeconomic calendar, several macro data from the UK such as the producer price index, consumer price index, and retail price index are expected at 0800 CEST.
At 0900 CEST the European Central Bank’s non-monetary policy summit is expected. One hour later comes German business expectations and the IFO index of German business confidence.
At 1300 CEST comes mortgage loan data from the United States.
At 1630 CEST it is the turn of oil stocks.
Among companies listed on the Milan Stock Exchange, results from Assicurazioni Generali and Laboratorio Farmaceutico ERFO are expected.
By Claudia Cavaliere, Alliance News reporter
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