(Alliance News) - On Tuesday, as expected, major European stock exchanges opened the session lower, failing to maintain the gains of the previous session and following a general mood of caution, with the focus on the European Central Bank's decision later in the week.

The lower-than-expected ISM manufacturing PMI in the U.S. weighed on market sentiment as it unexpectedly fell to 48.7 in May from 49.2 in April, below forecasts of 49.6.

The reading showed another contraction in manufacturing activity as demand was again weak, production remained stable and inputs remained accommodative.

Thus, the FTSE Mib opens in the red 1.0 percent to 34,328.83, the Mid-Cap gives up 0.4 percent to 47,665.23, the Small-Cap is down 0.2 percent to 29,456.13 while Italy Growth opens in the fractional red at 8,186.12.

In Europe, London's FTSE 100 gives up 0.5 percent, Frankfurt's DAX 40 is in the red 0.4 percent and Paris' CAC 40 is down 0.6 percent.

In addition, Brent crude futures fell below USD78 a barrel, slipping for the fifth consecutive session to the lowest in four months amid fears that global supply may increase later this year. On Sunday, OPEC+ agreed to extend most supply cuts through 2025, but opened the door for voluntary cuts by eight member countries to be phased out starting in October.

On the Mib, almost entirely dyed red, only Campari, STMicroelectronics, Terna and Snam are saved, with gains between 0.2 percent and 0.1 percent.

At the bottom are Banca Monte dei Paschi di Siena and Saipem, down 3.5 percent and 3.4 percent.

Enel gives up 0.4 percent after receiving an upgrade from Moody's Investors Service, which raised its outlook from "negative" to "stable."

The agency also affirmed its long-term debt rating at "Baa1" and maintained its short-term debt rating at "P-2."

Interpump Group is in the fractional red. On Monday it announced that it had acquired 100 percent of the capital of Alfa Valvole Srl from the U.S.-based IDEX Corporation.

In 2023, the company generated sales of about EUR28 million, with an Ebitda margin of about 26 percent and cash of EUR11 million. The total price of the transaction was set at EUR55 million.

Telecom Italia gives up 1.4 percent after gaining 4.1 percent at the close. As Francesco Bonazzi writes in Alliance News, "after the green light from Brussels to sell the network, the stock market expects that this is really the right time for Telecom Italia and today rewards the stock with a sharp rise. In the background, two questions always remain: the divestment of Telecom Sparkle and the profitability of the telephone operator (ServCo) after the divestment of the infrastructure (NetCo)."

UniCredit gives up 2.0%. It announced Monday that it will exercise its early redemption option on two bonds issued in 2019. In detail, the bank will early repay the EUR1.25 billion fixed-rate bond due in June 2025 and the EUR750.0 million bond due in July 2025. Both redemptions will take place at par, with the first to be executed on June 25 this year and the second to take place on July 3.

In the cadet segment, Ariston Holding opens in the green by 6.9 percent followed by Alerion, up 1.4 percent.

Anima Holding - in the red by 0.09 percent - announced Monday that between May 27 and May 31 it bought back 580,700 of its own ordinary shares at an average price of EUR4.8306 each and a countervalue of EUR2.8 million.

Banca Ifis - in the red by 0.7 percent - announced that Katia Mariotti, current head of the Npl division, has completed the three-year business plan of the same division, and will undertake a new professional assignment at AMCO - Asset Management Company as of August 3.

On the Small-Cap segment, Newlat Food opens up 5.1 percent after announcing details of the group's business plan to 2030 on Tuesday, following the announcement on May 27 regarding its intention to acquire 100 percent of the share capital of Princes Limited, a historic UK-based food group.

As a result, the new group's 2030 business plan calls for organic revenue growth with a CAGR of 3 percent between 2024 and 2030, reaching EUR3.34 billion in 2030. Profitability is expected to increase by 270 bps, reaching an Ebitda of EUR317 million and a margin of 9.5 percent in 2030. Net income is expected to exceed EUR100 million by 2030, while already for the current year, pro-forma 2024 profit - Princes consolidated for 12 months - is expected to exceed EUR300 million due to badwill of EUR288 million.

Alkemy opens in the green by 1.3 percent after closing up more than 19 percent. Retex announced Monday that it has launched a tender offer for Alkemy shares. The offer is EUR12.00 for all 5.7 million ordinary shares of the company and is aimed at delisting Alkemy. Duccio Vitali, managing director of Alkemy, will join the offer with his 625,616 shares, representing 11 percent of Alkemy's share capital.

The value offered by Alkemy represents a premium of 21 percent over the closing on Friday, May 31, and 16 percent over the average of the last 12 months, 9.7 percent over the average of the last six months, and 22 percent over the average of the last quarter. If the takeover bid is fully subscribed, Retex will shell out a total of EUR68.2 million.

Sogefi gives up 1.2 percent after announcing Friday that it has finalized the sale of its Filtration division to U.S. investment fund Pacific Avenue Capital Partners. The cash consideration received by Sogefi, in line with the February 23 announcement, was EUR331.2 million, determined based on an enterprise value of EUR374 million and adjustments that take into account estimated net working capital and net financial position as of May 31, 2024.

Among SMEs, Laboratorio Farmaceutico Erfo is flat at EUR1.12 per share after announcing Monday that it has received from the Ministry of Enterprise and Made in Italy the preliminary assessment, with a positive outcome, for the granting of facilities from the Sustainable Growth Fund in favor of the Plants - Production and Laboratories for Nutraceutical Adjuvants on Smart Lands investment program.

The facilities, for the entire partnership of which Erfo is the lead partner, amount to a total of EUR5.3 million, of which EUR4.4 million is in the form of a non-repayable grant and EUR941,707.76 in subsidized financing.

Erfo will receive EUR356,696.09 in non-repayable grant and EUR225,900.00 in subsidized financing for the investments under the proposal.

IMD International Medical Devices still does not trade, after closing up 3.5 percent. The company announced Friday that it had signed an agreement to acquire a 30 percent stake in General Medical Italia with partner UK Medical Imaging. The total price for the 30% purchase was set at EUR300,000, to be paid in cash in full on the closing date.

Circle opens up 1.5 percent after announcing Monday that subsidiary Magellan Circle was awarded the Fuels-C project.

Funded under the Horizon Europe program and with a total budget of about EUR4 million, Fuels-C for Circle is worth EUR200,000 during the 42-month implementation period.

In Asia, the Nikkei closed in the red 0.4 percent to 38,804.50, the Hang Seng was up 0.2 percent to 18,436.66, and the Shanghai Composite closed in the green 0.4 percent to 3,091.20.

In New York on European night, the Dow closed down 0.3 percent to 38,571.03, the Nasdaq rose 0.6 percent to 16,828.67, and the S&P 500 gained 0.1 percent to 5,283.40.

Among currencies, the euro changed hands at USD1.0888 from USD1.0886 on Monday in European equities closing while the pound was worth USD1.2788 from USD1.2788 on Monday evening.

Among commodities, Brent crude is trading at USD77.28 per barrel from USD78.43 per barrel on Monday. Gold, on the other hand, trades at USD2,343.63 an ounce from USD2,341.10 an ounce on Monday evening.

Tuesday's macroeconomic calendar has Germany's unemployment rate at 0955 CEST.

From the US, at 1600 CEST, comes the Durable Goods and New Jobs Jolts data, while at 2230 CEST it is the turn of weekly oil inventories.

Among companies listed on the Milan Stock Exchange, no special events are scheduled.

By Chiara Bruschi, Alliance News reporter

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