Stock markets down; oil volatility and US inflation weigh.

(Alliance News) - Major European stock markets close in negative territory on Thursday after U.S. inflation data beat forecasts, although the overall picture of weakening price growth remains intact.

"It took a big drop in inflation to send stocks higher after the huge gains in the fourth quarter of 2023. Not surprisingly, the figure was slightly higher than expected, and with investors already questioning their earlier optimism about the rate cut in March, further selling was almost inevitable. It appears that this January will continue to be a month of profit-taking, but the medium-term outlook continues to suggest that inflation will continue to fall, keeping hopes for a rate cut alive, commented Chris Beauchamp, chief market analyst at IG Platform.

However, "oil prices continue to give the impression that they have bottomed out for the time being. Today's jump of 3 percent comes after a volatile week, but after shrugging off the Saudi price cut earlier in the week, it looks like we at least have the makings of a decent near-term rally."

Thus, the FTSE Mib closes 0.7 percent in the red at 30,249.16, as does the Mid-Cap at 43,951.06, the Small-Cap drops 0.5 percent to 27,737.17, and Italy Growth ends 0.3 percent in the red at 8,238.86.

In Europe, London's FTSE 100 ends down 1.0 percent, as does Paris' CAC 40, while Frankfurt's DAX 40 gives up 0.9 percent.

In macroeconomic news, in fact, the annual inflation rate in the U.S. rose to 3.4 percent in December from a five-month low of 3.1 percent in November, higher than the market forecast of 3.2 percent. The data were released Thursday by the U.S. Bureau of labor statistics.

Compared with November, consumer prices rose 0.3 percent, the highest in three months and higher than forecasts of 0.2 percent. Meanwhile, annual core inflation fell to 3.9%, lower than the previous period's 4% but higher than expectations of 3.8%.

On the Mib, oils go down, with Saipem giving up 2.6% and Tenaris losing 0.4%.

Banca Generali -- in the red by 1.3 percent -- reported Thursday that it recorded inflows of EUR834 million in December, bringing the full-year figure to EUR5.86 billion, up 3 percent year-on-year.

December also consolidated the recovery of managed and insurance solutions compared to previous months, with EUR256 million in new flows. At the product level, financial containers collected EUR131 million in the month - and EUR699 million in the year -, confirming themselves as the solution that best meets the needs of private clients in terms of diversification and personalization offered.

Azimut Holding -- down 2.9 percent -- estimates it ended 2023 with adjusted net income of between EUR445 million and EUR455 million, in line with its full-year target of EUR450 million.

As disclosed Thursday by the management company, full-year net inflows were EUR6.9 billion, also in line with the internal target, while total assets hit a record high of EUR90.8 billion. Approximately 46 percent of inflows, or EUR3.2 billion, were directed into managed products.

Total assets thus grew significantly, reaching a record level of EUR90.8 billion as of December 31 from EUR79.0 billion, reflecting solid year-on-year growth of 15 percent.

Banco BPM -- in the red by 1.7 percent -- announced on Wednesday that it had completed a new EUR750 million issue of a green senior bond with a six-year maturity and the possibility of early redemption in January 2029.

On the cadet segment, Reply rises 1.5 percent after announcing Wednesday the launch of Accelerator 365, a new solution offering innovative intranet and digital workplace applications.

Accelerator 365 leverages the expertise and experience of WM Reply and Valorem Reply, two of Reply's Microsoft technology-focused companies, to build and market a suite of applications that improve the functionality, usability and design of intranets and digital workplaces. These applications are designed to help organizations improve communication, collaboration, productivity, and employee, customer, and partner engagement.

Maire Tecnimont gives up 0.8 percent after reporting Wednesday that subsidiary Nextchem has launched a new "e-Factory model for carbon-neutral chemistry."

The initiative is supported by the signing of a cooperation agreement with newcleo to develop, on an exclusive basis, a conceptual study for the production of carbon-neutral hydrogen using an innovative clean and safe nuclear technology.

Among the smallcaps, Esprinet - in the red by 1.6 percent - announced Thursday that it will distribute the solutions of Tech Style, an agency that develops cutting-edge web projects with a strong focus on sustainability in order to ensure an effective and lasting online presence.

FNM--down 1.6 percent--reported Wednesday that between Jan. 8 and Jan. 9, work began on the refurbishment of the railway premises in the area of the old Cesano Maderno station.

ePrice did not trade. The company announced that a shareholders' resolution to change the company's name has been registered with the Milan-Monza Brianza-Lodi business registry.

The company's new name will be EPH Spa.

Among SMEs, Portobello gave up 6.8 percent after reporting Thursday that the board of directors set the terms of the EUR8.0 million capital increase to be offered under option to shareholders.

1.1 million new ordinary shares will be issued, with a subscription price of EUR7.00 per share. For each ordinary share held, one option right will be assigned with the issuance, therefore - taking into account the 8,550 treasury shares in the company's portfolio and subject to the waiver by the shareholder Expandi Srl of 74,602 option rights necessary to square the transaction - of a total of 3.4 million option rights. For every three rights, one new share will be available for subscription.

The option rights will be exercisable from January 15 to February 1.

EdiliziAcrobatica -- in the green by 1.5 percent -- on Thursday reported that the number of contracts signed during 2023 increased by 48 percent, from 17,925 contracts in 2022 to 26,550. This result reflects the sharp growth in the number of clients, which registered a year-on-year increase of 100 percent.

Eprcomunicazione rose 3.0 percent after announcing Thursday that the board of directors has co-opted Mauro Isidori as an executive director, subject to the approval of the board of statutory auditors, to replace Valerio Gianni, who resigned.

In New York, the Dow is down 0.7 percent to 37,437.92, the Nasdaq loses 1.1 percent to 14,811.86, and the S&P 500 gives up 0.9 percent to 4,741.53.

Among currencies, the euro changes hands at USD1.0943 against USD1.0954 recorded at Wednesday's European stock close while the pound is worth USD1.2704 from USD1.2722 last night.

Brent crude is worth USD78.74 per barrel versus USD77.48 per barrel at Wednesday's close. Gold, meanwhile, trades at USD2,019.55 an ounce from USD2,030.25 an ounce last night.

Friday's economic calendar opens at 0230 CET with Chinese inflation data, while trade balance data are due at 0400 CET.

In the UK, GDP and manufacturing data are published at 0800 CET. At 0845 CET in France, inflation is published and at 0900 CET Spanish inflation is published.

Overseas, at 1430 CET, the US major producer price index is expected.

Among the companies listed in Piazza Affari, the results of Unieuro are expected.

By Claudia Cavaliere, Alliance News reporter

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