Squares in the red; MPS the worst in Milan

(Alliance News) - Major European stock exchanges moved into the red on Friday, extending the previous session's decline, due to concerns about the health of the banking sector and further monetary tightening by major central banks.

The STOXX Europe 600 Banks is down nearly 5 percent after UBS and Credit Suisse came under scrutiny in a U.S. Justice Department investigation into whether Swiss bankers helped Russian oligarchs evade Western sanctions.

In addition, the elimination of Credit Suisse's USD17 billion AT1 bonds will have "profound" implications for global banking regulations, said Bill Winters, managing director of Standard Chartered Bank.

Winters made the point at a conference on Friday in a discussion of banks' capital buffers following the historic regulator-mediated acquisition of Credit Suisse. The Swiss financial regulator decided to write off USD17 billion of AT1 bonds as part of the deal.

"The issue is not so much whether the regulator has confidence in our solvency...it's whether the market has confidence in our liquidity," Winters said.

Thus, the FTSE Mib trades down 2.5 percent at 25,833.41.

In Europe, London's FTSE 100 is in the red by 1.9 percent, while Paris' CAC 40 is giving up 2.2 percent as is Frankfurt's DAX 40.

Among Italy's smaller lists, the Mid-Cap is in the red 1.6 percent to 42,274.79, the Small-Cap is giving up 1.8 percent to 29,487.72 while Italy Growth is giving up 0.9 percent to 9,272.41.

On the main list in Piazza Affari, banks give ground. Among the biggest bearers are UniCredit, which retreats 5.8 percent, Intesa Sanpaolo with 4.8 percent and FinecoBank with 4.4 percent.

Doing even worse is Monte dei Paschi, which gives up 5.9 percent to EUR1.82. On Thursday it announced that board chair Patrizia Grieco has resigned upon the renewal of her term, after taking a new position at another listed company. The resignation is effective March 26.

Among the very few bullish performers, DiaSorin advances 1.0 percent, pending results due for publication on Monday.

Société générale raised Terna's fair value to EUR8.50 from the previous EUR8.20. The stock is flat with price at EUR7.50.

On the cadet segment, Saras steps back 1.2 percent to EUR1.38 following the previous two sessions closed lower.

At the tail end is Banca Popolare di Sondrio, which marks a minus 4.3% at EUR3.79 and in the monthly time frame shows a 16% contraction.

Iren -- up 2.0% and best on the list -- reported Thursday that it ended 2022 with a net profit of EUR226 million, down 25% from EUR303 million a year earlier. Despite the drop in profit, the board's proposed dividend is up 10% year-on-year, to EUR0.11 from EUR0.10 paid last year.

In contrast, Alerion rises 1.0% to EUR29.95 after two sessions closed lower.

On the SmallCap, Brioschi gives up 2.1 percent to EUR0.0748. The stock-which has not detached its dividend since 2019-is heading for a third session to end on the downside.

In contrast, d'Amico gives up 6.1 percent to EUR0.4585. The company--which has been missing the ex-dividend since 2016--has doubled its market cap in the past six months.

Strength on Greenthesis, which advances 3.9% to EUR0.9290 following two sessions closed in the red.

Il Sole 24 Ore - up 5.4 percent - reported Thursday that it closed fiscal year 2022 with a "marked improvement" in all economic and financial indicators compared to 2021. The net result was EUR500,000 from a loss of EUR21.0 million in 2021. The company had not closed in profit for 14 years.

Among SMEs, profit-taking on Gambero Rosso after previous positive sessions following good accounts. The stock gives up 8.8 percent.

Go Internet, on the other hand, gives up more than 11 percent before being suspended at a volatility auction.

Pharmacosmo, on the other hand, rises 2.9% to EUR1.64 per share with results due next Wednesday.

In New York overnight Europe, the Dow advanced 0.2%, the Nasdaq rose 1.0%, and the S&P 500 picked up 0.3%.

Among currencies, the euro changed hands at USD1.0735 versus USD1.0897 at Thursday's close. In contrast, the pound is worth USD1.2207 from USD1.2326 on Thursday evening.

Among commodities, Brent crude is worth USD73.50 per barrel versus USD76.64 per barrel last night. Gold, on the other hand, trades at USD1,994.35 an ounce from USD1,993.09 an ounce at last night's close.

On Friday's economic calendar, several macros are scheduled in the US in the afternoon, including the PMI index for tertiary and manufacturing at 1445 CET.

By Maurizio Carta, Alliance News reporter

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