(Alliance News) - On Wednesday, European stock markets end the session in positive territory, with Piazza Affari doing best of all on the eve of the European Central Bank meeting.

The ECB is expected to cut interest rates by 25 basis points again. Its language is expected to take on a cautiously accommodative tone, analysts predict.

The last monetary policy meeting took place in October, with the 25 basis point cut. Since that decision, Frankfurt policymakers have had to contend with weak economic data, a higher inflationary reading and policy uncertainties.

Overseas, U.S. inflation and the Fed's likely rate cut pushed the Nasdaq to a new all-time high.

"Risk sentiment had been subdued in anticipation of today's inflation data, but the news triggered renewed buying," comments Chris Beauchamp, chief market analyst at IG.

The Fed cut could support economic growth and attract investors to the U.S., according to the IG analyst.

Thus, the FTSE Mib closes Wednesday up 0.6 percent to 34,731.31, the Mid-Cap rises 0.8 percent to 48,631.97, the Small-Cap advances 0.4 percent to 28,547.22, and Italy Growth ends up 0.6 percent to 7,830.84.

In Europe, London's FTSE 100 closes in the green by 0.3 percent, Paris' CAC 40 gains 0.5 percent, and Frankfurt's DAX 40 finishes ahead by 0.4 percent.

In macroeconomic news, in the US, the annual inflation rate rose for the second consecutive month to 2.7 percent in November, up from 2.6 percent in October and in line with market expectations.

Also in the U.S., the average interest rate for 30-year fixed-rate mortgages with conforming loan balances -- at or below USD766,550 -- fell to 6.67 percent in the week ended Dec. 6, according to data from the Mortgage Bankers Association of America.

Back in Milan, on the highest-capitalization list in Piazza Affari, Leonardo did better than all and finished in the green by 3.1 percent.

Saipem did well, ahead 2.6 percent. JPMorgan raised its target price on the stock to EUR3.40 from EUR3.20 with 'overweight.

Assicurazioni Generali ends the session in the green by 2.4 percent. AM Best reported that it upgraded the insurance group's financial strength rating to 'A+ Superior' from 'A Excellent' and its long-term credit rating to 'aa- Superior' from 'a+ Excellent.' The outlook remains Stable.

Banca Popolare di Sondrio -- in the green by 0.9 percent -- reported Wednesday that it has been notified by the ECB that it has exceeded SREP prudential requirements.

Nexi rises 0.1 percent. The company announced Wednesday that it has signed, with Cassa di Risparmio di Volterra, a strategic partnership with the aim of expanding and enhancing digital payment services for its customers, both private and commercial.

Intesa Sanpaolo -- in the green by 0.9 percent -- reported Wednesday that it "largely meets" the capital requirement set by the ECB for 2025.

UniCredit ends up 0.4 percent. As La Repubblica reported Wednesday, Orcel is attempting to reopen talks with Crédit Agricole, which is now taking a more cautious stance. Possible developments could include the extension of Amundi's contract on UniCredit or the purchase of branches in the event of a BPM-UniCredit merger, consolidating Crédit Agricole's position as the third banking hub in Italy. Banco BPM, meanwhile, closed fractionally in the red.

Eni closed in the red by 0.2 percent. The six-legged dog reported Wednesday that it bought back 8.4 million of its own ordinary shares between Dec. 2 and 6 for a total value of EUR112.5 million.

Sales for Stellantis, which closes 0.6 percent in the red after two bullish sessions.

Hera - in the red by 0.9 percent - was fined nearly EUR2.0 million by the Antitrust Authority and ComoCalor EUR286,600 "for excessive pricing in the district heating sector," as specified in a press release issued by the authority.

On the Mid-Cap, Rai Way rises 2.9 percent. According to rumors reported by Corriere della Sera on Wednesday, Rai is ready to bring to the board for signature the memorandum of understanding aimed at studying the aggregation between its subsidiary Rai Way and Ei Towers, the competitor owned 60% by the F2i fund and 40% by Mfe.

The topic could already be included in the agenda of the Dec. 19 board meeting or in the first board meeting in 2025.

MFE-MediaForEurope -- with A shares up 1.5 percent and B shares in the red by 0.1 percent -- is poised to close a golden 2024, with the highest TV profits since 2010, and remains convinced that growth is necessary to have more clout and synergies, more on revenues than costs, as La Repubblica reported Wednesday.

To that end, it has negotiated with a pool of banks EUR3.4 billion in credit lines on favorable terms -- 120 points above Euribor -- with which it will be able to finance its takeover bid on German TV, in which it already has a 29.9 percent stake.

But before venturing a bid, MFE is waiting for Prosiebensat to divest its non-strategic assets. In this regard, the Bert Habets-led group expects to divest Verivox to Multiply by year-end.

Webuild -- in the green by 0.4 percent -- reported Wednesday that it has opened, on the border between Campania and Puglia, in the municipality of Bovino, one of the world's largest automated factories for the production of 'ashlars' destined for the lining of the high-speed Naples-Bari tunnels.

On the Small-Cap, Bastogi did well, ending with a 21 percent flight. On the other side of the list, Fidia gives up 9.6 percent while EPH closes 4.8 percent in the red, at its lowest in 30 days.

Among SMEs, Sicily by Car closes in the green by 17 percent at EUR3.83. The company reported Tuesday evening that it posted revenues of EUR101.7 million for the first nine months of the year, up 3.1% from EUR98.6 million in the same period of 2023.

Ebitda as of September 30 amounted to EUR33.3 million, down from EUR45.3 million a year earlier.

Comal ends the session up 12 percent. Duferco Solar Projects announced Wednesday that it has reached an agreement to launch a takeover bid for the company.

The takeover bid -- aimed at delisting -- covers 12.8 million ordinary shares of Comal and the offer is EUR4.80 per share. Among the company's shareholders, Virtuis Solaris Srl will join with its 3.1 million shares.

Among the bearish Cofle closes 7.6 percent in the red, hitting a new 52-week low.

In New York, the Dow is in fractional green, the Nasdaq rises 1.6 percent, and the S&P 500 rises 0.8 percent.

Among currencies, the euro changes hands at USD1.0496 from USD1.0507 in Tuesday's European stock close. The pound is worth USD1.2752 versus USD1.2744 on Tuesday evening.

Among commodities, Brent crude is worth USD73.05 per barrel from USD72.05 per barrel at Tuesday's close. Gold trades at USD2,751.44 an ounce from USD2,687.65 an ounce Tuesday evening.

Thursday's macroeconomic calendar opens at 1000 CET, from Italy, with the quarterly unemployment rate; at 1110 CET, also from Italy, BTP auctions with different maturities are scheduled.

In the afternoon, at 1415 CET eyes are on the European Central Bank's decision on interest rates.

At 1430, from the US, the producer price index is expected. Back in the euro zone, at 1445 CET it is the turn of the ECB press conference and at 1615 CET President Lagarde's speech.

It closes, from the US, at 2230 CET with the Fed's weekly balance sheet.

Among the companies listed in Piazza Affari, no particular announcements are expected.

By Antonio Di Giorgio, Alliance News reporter

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