(updating with full report)
MILAN (Thomson Financial) - Share prices closed lower, depressed by the interest rate outlook in the US and euro zone, and led by Intesa Sanpaolo on caution ahead of Saturday's business plan announcement, brokers said.
The Mibtel index fell 0.21 pct to 33,273 points and the S&P/Mib was off 0.11 pct to 42,756.
Volume was an estimated 5.615 bln eur.
Brokers said macroeconomics were the main factor in today's trading, with company-specific news being less important.
This afternoon's US data on jobless claims and imports suggested that inflationary pressures remain, the brokers said.
In the eurozone, the European Central Bank left its rates unchanged, but brokers said the ECB remains attentive to inflationary pressures.
One broker said he expects a 25 point rise in the ECB's key refinancing rate in June, from the current 3.75 pct, adding that ECB comments suggest such a hike would not end the tightening cycle.
Another broker said the market has quickly recovered ground lost after its correction and is likely to move sideways for a while.
Intesa Sanpaolo was down 1.25 pct to 5.86 eur. Brokers said the bank's share price had risen too sharply in the last days.
One broker said Intesa Sanpaolo's extraordinary dividend, expected as part of its business plan, could lead to the share yielding a 10 pct dividend.
Among other banks, Capitalia was up 0.79 pct to 7.05 on merger speculation.
Finance firm Conafi Prestito rose 11.00 pct to 5.55 on its first day's trading after an IPO. Brokers said funds had difficulty finding enough stocks to invest in in this sector.
STMicro was the sharpest gainer, up 3.00 pct to 15.14, on unconfirmed reports it is setting up a joint venture in flash memory with Intel. One broker said memory chip prices are rising.
Telecom Italia, down 0.40 pct to 2.3475, remained the focus of attention on Pirelli's talks with possible buyers for part of its stake in Olimpia, the largest shareholder in Telecom Italia.
Telecom Italia fell to its low of the day at the close on unconfirmed reports that talks on Intesa Sanpaolo's interest in buying an Olimpia stake have stalled. Pirelli was up 0.95 pct to 0.908.
Energy stocks were mixed. Enel rose 0.38 pct to 8.185 on continued positive reaction to its Endesa bid. Eni lost 0.08 pct to 24.47.
Cements were lower. Buzzi Unicem was down 0.68 pct to 23.52, giving up recent gains on Mediobanca's positive note on the stock and a 28.5 eur target.
Insurers were higher, tracking a European trend. Generali was up 0.33 pct to 33.33. Brokers said there was no news at the analyst meeting of Fondiaria-SAI, up 0.45 pct to 36.06.
Fiat eased 0.07 pct to 19.07. Brokers said the sector was weak after broker comments on German car makers.
Alitalia was up 0.41 pct to 1.003. nigel.tutt@thomson.com nt/gp/nt/amb COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
© 2007 AFX News
