(Alliance News) - European stock markets on Wednesday opened moving around the parity line, with traders taking a breather after robust rallies in November and December, fueled mainly by the prospect of interest rate cuts in 2024.

On the magnifying glass for investors is the release of FOMC minutes and inflation data from major European economies, as well as the upcoming U.S. employment report, which could provide further guidance on the future direction of monetary policy.

The dollar index is holding above 102, supported by a cautious turn in risk appetite highlighted by a rebound in Treasury yields and good selling volume on Wall Street. Analysts also pointed to rising geopolitical tensions in the Middle East after Iran deployed a warship to the Red Sea earlier this week in a move to challenge U.S. forces on the key trade route.

In addition, investors have scaled back "bets" on the size of interest rate cuts by major central banks. Markets now see a roughly 70 percent probability of a quarter-point rate cut by the U.S. central bank in March, down from nearly 90 percent previously.

?Thus, the FTSE Mib travels fractionally lower at 30,513.18.

In Europe, London's FTSE 100 is advancing 0.3 percent, while Paris' CAC 40 is giving up 0.1 percent and Frankfurt's DAX 40 is just above par.

Mid-Cap is giving up 0.3 percent to 44,189.33, Small-Cap is giving up 0.2 percent to 28,238.84, and Italy Growth is in the red 0.1 percent to 8,330.93.

On the Mib, the banking sector is off to a good start, with Banca Monte dei Paschi, Banco BPM, and Intesa Sanpaolo marking green ranging from 1.8% to 0.7%.

Purchases also on Inwit, which brings the bar up 0.7% on the heels of eve's 1.0% gain.

At the tail end, in the wake of falling barrel prices, Tenaris gives up 1.0%, Eni 0.3%, and subsidiary Saipem 0.8%.

In the cadet segment, Salcef advances well, up 2.7% with price at EUR24.95 after a 1.4% loss on the eve.

Good cue also for Mondadori Editore, which moves up 1.7 percent to EUR2.12 per share.

In the large group of bearish performers, SOL is stepping back 0.9%, positioning itself toward the fifth session to close on the bearish side.

Tod's, on the other hand, closes the list by giving up 1.4 percent, on the heels of eve's 2.8 percent loss.

On the SmallCap, Tesmec moves ahead 4.0 percent, following up on the eve's profit closed with a plus 6.8 percent.

Risanamento, on the other hand, marks a plus 2.6%, rearing its head again after two sessions closed with bearish candles.

Among SMEs, Digitouch advances 7.4 percent, following up on eve's green, albeit with 0.9 percent.

Good purchases also on Giglio.Com, which is putting up 4.6 percent with price at EUR2.36 per share.

At the tail end, Doxee is giving up 5.3% with price at EUR4.32 after three sessions of rises.

Among Asian exchanges, with Tokyo still closed, the Hang Seng is giving up 0.9 percent, while the Shanghai Composite took home 0.2 percent.

Among currencies, the euro changes hands at USD1.0953 against USD1.0944 recorded in Tuesday's European stock close while the pound is worth USD1.2644 from USD1.2624 Tuesday evening.

Brent crude is worth USD75.44 per barrel versus USD77.41 per barrel at Tuesday's close. Gold, meanwhile, trades at USD2,061.30 an ounce from USD2,058.07 an ounce on Tuesday evening.

Wednesday's macroeconomic calendar includes at 0900 CET the Spanish unemployment rate and at 0955 CET the same figure for Germany.

In the afternoon, from the U.S. the 30-year mortgage rate at 1300 CET and at 1600 CET the ISM index of manufacturing purchasing managers and new jobs JOLTs for November.

In the stock market, no special events are scheduled.

By Maurizio Carta, Alliance News reporter

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