Wed. Sep 20th, 2023
    Piazza Affari Opens Higher on Lack of Data, Anticipation of Economic Events

    Piazza Affari, the Italian stock exchange, opened higher on Monday’s session, as predicted. The day lacked significant macro data and corporate appointments but marked the beginning of a week that is expected to heat up economically between Wednesday and Friday.

    German producer prices in July fell by 6.0 percent year-on-year, reversing the previous month’s 0.1 percent increase, according to a report from Destatis. The decline was largely attributed to a base effect, with energy prices dropping by 19 percent, including a 30 percent fall in electricity prices. Intermediate food prices also fell by 3.4 percent due to factors such as metal, fertilizer, and wood prices. However, the cost of non-durable goods rose by 8.1 percent, particularly driven by the price of food, especially sugar. Excluding energy, producer prices rose by 2.0 percent year-on-year. On a monthly basis, producer prices fell by 1.1 percent in July.

    The FTSE Mib, Italy’s benchmark stock index, opened up 0.8 percent, while London’s FTSE 100, Paris’ CAC 40, and Frankfurt’s DAX 40 also saw gains in early trading.

    On the Piazza Affari blue chip list, most stocks opened higher, with Saipem leading the bullish trend with a 2.7 percent increase. Telecom Italia and Intesa Sanpaolo were also trading higher. The banking sector as a whole performed well, with Monte dei Paschi registering the highest rise among listed banks on the Mib. Ferrari saw a 1.8 percent increase after Barclays raised its full-year earnings estimates for the luxury sports car maker.

    In the mid-cap sector, Piaggio rose 3.6 percent following the announcement of a special board meeting in relation to the appointment of a new chairman. Juventus FC also saw a 0.7 percent rise after a successful league debut with a 3-0 win. However, Caltagirone and Alerion experienced declines of 3.2 percent and 3.1 percent, respectively.

    In the small-cap sector, Immsi and Giglio Group saw gains of 7.5 percent each, while KME Group did not trade after signing a letter of intent regarding a potential business combination with SDCL EDGE Acquisition Corp.

    Among SMEs, Altea Green Power rose 4.4 percent and Redelfi increased by 3.0 percent after securing a USD 15 million financing with Leyline Renewable Capital LLC for the implementation of a Battery Energy Storage System pipeline in the U.S. territory. Visibilia Editore continued to rally with a 13 percent increase as the approval of the company’s half-year report approaches.

    In other news, China’s central bank announced a cut in a key interest rate to counter the post-Covid growth slowdown in the country.

    – Piazza Affari: The Italian stock exchange.
    – FTSE Mib: The benchmark stock index of the Italian stock exchange.
    – Macro data: Economic data that provides an overview of a country’s overall economic situation.
    – Base effect: The impact on statistical data caused by changes in the underlying data from which it is derived.
    – Producer prices: The prices at which goods and services are sold by manufacturers.
    – Energy prices: The prices of energy resources such as electricity, oil, and gas.

    – Alliance News: [source]
    – Destatis: German federal statistical office [source]
    – Barclays: British multinational investment bank [source]
    – Piaggio: Italian manufacturer of motorcycles, scooters, and mopeds [source]
    – Juventus FC: Italian professional football club [source]
    – KME Group: Italian multinational company specializing in copper and copper-alloy products [source]
    – Altea Green Power: Renewable energy company [source]
    – Redelfi: Company involved in green energy projects [source]
    – Leyline Renewable Capital LLC: U.S.-based renewable energy financier [source]
    – Visibilia Editore: Publishing company [source]
    – People’s Bank of China: Central bank of China [source]