Stock exchanges in the red on eve of US PCE

(Alliance News) - On Thursday, major European stock exchanges closed the session mixed on the eve of the US PCE data due tomorrow.

"While Wall Street climbed and the DAX gained this afternoon, the FTSE 100 continued to suffer in the red due to a number of companies about to detach their dividend and bad news for GSK. The latter went from a multi-decade high to a four-month low, but is now trading at about 9 times earnings. Investors who think the reaction has been exaggerated may be tempted to go bargain hunting at these levels," commented Chris Beauchamp Chief Market Analyst at online trading platform IG.

"U.S. stocks regained some upward momentum in the afternoon, even though there are less than 24 hours until tomorrow's PCE price data. Should these indicate a further slowdown in price growth, the last trading day of June could go in the same direction as May, which saw a strong rally. A softer PCE reading could renew hopes for a September rate cut, which have been strained lately."

Thus, the FTSE Mib closed down 1.1 percent to 33,186.89, the Mid-Cap finished up 0.1 percent to 46,914.11, the Small-Cap closed up 0.5 percent to 28,805.77 while Italy Growth finished up slightly to 8,122.16.

In Europe, London's FTSE 100 closed 0.5 percent in the red, Frankfurt's DAX 40 advanced 0.3 percent while Paris' CAC 40 gave up 1.1 percent.

On the Mib, Eni closed in the green by 0.5 percent after reporting Thursday that it has signed a binding agreement with Hilcorp, one of the largest private U.S. companies operating in Alaska, to sell 100 percent of the Nikaitchuq and Oooguruk assets held by Eni in Alaska.

The transaction is in line with Eni's strategy of optimizing upstream activities by rebalancing its portfolio and divesting non-strategic assets.

ERG -- in the red by 1.4 percent -- announced Friday that it had completed the placement of a EUR500 million 6-year fixed-rate bond issued as part of its EUR3.0 billion medium- to long-term non-convertible and non-subordinated bond issue program.

On the cadet segment, Fincantieri -- up 0.2 percent -- and Crystal announced Thursday the signing of a Memorandum of Agreement to build two high-end, state-of-the-art cruise ships, plus an option for a third unit.

The new vessels will have a gross tonnage of 61,800 tons and will accommodate about 690 passengers, the statement said.

d'Amico International Shipping - up 1.7 percent - announced Thursday that its operating subsidiary d'Amico Tankers DAC has exercised its purchase option on the MT Crimson Jade, a "medium-range" tanker of 50,000 gross tonnage, built in June 2017 at Minaminippon Shipbuilding Co, Ltd, in Japan, for about USD31.0 million and with estimated delivery in July.

On the Small-Cap, Somec-which garnered 2.8 percent-on Thursday reported that it had secured three orders worth a total of EUR63.4 million for the benefit of its Horizons division, engineered naval architecture systems and civil facades. The work will start in the second half of 2024 and continue until 2029 with volumes and consequently revenues evenly distributed over the time frame.

TXT e-solutions -- up 0.4 percent -- on Wednesday informed that a contract was signed for the acquisition of 100 percent of the capital of Imille Srl, its foreign subsidiaries Imille Spain SL, Imille Start Spa (Chile), and Imille Brasil Agencia LTDA, and the company Uasabi Srl, together referred to as the "I MILLE Group." TXT will consolidate the results within its Digital Advisory division as of June 26. The base consideration paid at closing for the purchase of 100% of Gruppo I MILLE, net of earn-outs, claw-back and NFP that will be settled in cash, was agreed between the parties at EUR8.5 million.

Borgosesia--in the red by 0.6 percent--reported that it had finalized the purchase of a 77 percent stake in an investment vehicle--owner of a property, abandoned for years, located on Via Mecenate (southeastern area) in Milan and already designated for office use for a consideration of EUR7.25 million.

Among SMEs, Circle's shareholders--green by 2.8 percent--approved a EUR4.0 million capital increase involving the issuance--through accelerated bookbuilding--of up to 600,000 new ordinary shares in the company.

In New York, the Dow trades in the green by 0.3 percent, the Nasdaq advances 0.3 percent, and the S&P has rallied 0.2 percent.

Among currencies, the euro changes hands at USD1.0707 from USD1.0681 on Wednesday in closing European equities while the pound is worth USD1.2647 from USD1.2621 on Wednesday evening.

Among commodities, Brent crude is trading at USD85.64 per barrel from USD84.58 per barrel at Wednesday's close. Gold, on the other hand, trades at USD2,314.73 an ounce from USD2,299.26 on Wednesday evening.

Friday's macroeconomic calendar opens with Japanese industrial production data at 0150 CEST, followed at 0800 CEST by UK GDP and, at the same time, the German import price index and German retail sales.

At 0845 CEST, the French producer price index is expected, followed at 0900 CEST by the same figure in Spain.

In Germany, the unemployment rate is expected at 0955 CEST while at 1000 CEST Italian industrial sales will come out and at 1100, also from Itala, the consumer price index.

At 1200 CEST the Italian non-EU trade balance is expected.

In the afternoon, at 1430 CEST the US PCE price index will come out.

In Piazza Affari, the results of I Grandi Viaggi are expected.

By Chiara Bruschi, Alliance News reporter

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