Piazza Affari (Milan Stock Exchange) fell after yesterday’s rally triggered by the result of the first round of the legislative elections in France.
Eurozone inflation data for June showed a slight decline, but the crucial services component remained stubbornly high, likely fuelling fears among some European Central Bank officials that domestic price pressures could remain elevated.
Investors now turn their attention to US data this afternoon, with the release of new jobs figures, one of the Fed’s most closely watched indicators, while tomorrow will see ADP data and Friday’s government employment figures.
U.S. stock index futures were also weak, pointing to a negative start for Wall Street in the afternoon.
By 12:40 p.m., the Ftse MiB was down 1.1 percent, off session lows. Volumes stood at $750 million.
Actions in focus today
In the banking sector, the big names Unicredit and Intesa Sanpaolo recorded declines of around 1.3%. MPS lost 0.8%, Bper and Banco Bpm were also weak.
Leonardo (+0.15%) is trying to maintain its positions after a flying start on the rumors of Il Sole 24 Ore according to which the company is in “very advanced” negotiations with the German group Rheinmetall to create an alliance on land weapons. According to the broker Equita, “the agreement would be positive because it would allow to quickly get out of the impasse created after the announcement on June 11 of the end of the negotiations in progress with Knds and would also allow Leonardo to enter the Franco-German project of the future European heavy tank”.
Conversely, Stellantis lost 3.3%. Iveco also saw a similar trend. For the manufacturer, June registration data in France, Italy and Spain weighed heavily, showing cumulative growth of 4% over one year at the market level compared to -4% for Stellantis, a broker indicates.
Enel lost 0.9%. Stifel resumed coverage with a ‘Hold’ recommendation and a price target of 6.4 euros. The broker considers the shares to be fairly well valued and to offer an attractive dividend yield.
Saipem shares rose 1.6%, supported by crude oil prices that hit a two-month high on expectations of a recovery in demand during the “summer driving season”. Money is also in Eni at +0.65%.
Finally, a positive start on the Star segment for Sys-Dat with a jump of 6.55%, halving its gains at the start of the session. The company, which offers IT services, started trading at 3.4 euros, in the middle of the range indicated at the time of the IPO, between 3.20 and 3.80 euros.
(Giancarlo Navach, edited by Andrea Mandalà)
