Mib falls to 30,200 area; Moncler trailing

(Alliance News) - European stock markets on Wednesday moved in a bearish trend, with traders appearing to take a breather after robust rallies in November and December, fueled mainly by the prospect of interest rate cuts in 2024.

Among the day's macro data, Germany's seasonally adjusted unemployment rate rose to 5.9 percent in December, up slightly from November's revised 5.8 percent, aligning with market expectations, according to Federal Employment Agency data released Wednesday. This is the highest rate since May 2021.

On investors' magnifying glass is the release of the 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 remains 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 down 0.9 percent to 30,247.49.

In Europe, London's FTSE 100 is giving up 0.4 percent, while Paris' CAC 40 is giving up 1.1 percent and Frankfurt's DAX 40 is down 0.6 percent.

Mid-Cap is giving up 1.5 percent to 43,669.81, Small-Cap is losing 1.3 percent to 27,925, and Italy Growth is in the red 0.7 percent to 8,288.28.

On the Mib, almost entirely at a loss, Moncler is giving up 2.9 percent with price at EUR54.02, on the heels of eve's 0.1 percent decline.

Stellantis, on the other hand, is stepping back 2.9 percent with price at EUR20.56 per share.

Amplifon, on the other hand, gives up 2.7 percent, positioning itself for the seventh session in a row to close on the bearish side.

Among the few bullish, Leonardo advances with 0.5%, following up eve's gain with 2.0%.

Generali also advances timidly, posting a plus 0.1% following up on the previous two bullish sessions.

In the cadet segment, Tod's, on the other hand, closes the list by giving up 4.0%, following eve's loss of 2.8%.

Widespread selling also on Tinexta, which marks a minus 3.6% after the 1.3% loss with which it closed eve.

Lottomatica advances, which marks plus 0.4 percent with price at EUR9.68 after the 1.5 percent loss on eve.

Intercos advances with 0.6 percent, after 0.7 percent green on eve.

On the Small-Cap, Beewize moves ahead 16%, after two sessions closed among the bearish.

PLC, on the other hand, advances 2.2%, pointing its snout toward its sixth session on the bullish side. The company on Tuesday announced that it has granted Hitachi Zosen Inova an exclusive until Jan. 31, 2024 to negotiate the purchase and sale of the entire stake ? equal to 51 percent of the entire share capital ? held by PLC in Schmack Biogas.

HZI submitted an offer that considers the value in terms of enterprise value referring to 100% of the share capital of Schmack Biogas Srl and its subsidiaries to be over EUR19 million, with a price adjustment mechanism, typical for this type of transaction.

At the tail end Tessellis gives up 8.5 percent, following up on the previous two bearish sessions.

Rear-ends also for Fidia, which marks a minus 4.5 percent, continuing its long bearish trend.

Among the SMBs, DigiTouch advances 4.2 percent, following up on eve's green, albeit with 0.9 percent.

Bellini Nautica, on the other hand, advances 3.1%, following eve's green with 5.3%.

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

At the tail end, Doxee is giving up 8.4 percent with price at EUR4.16 after three sessions of rises.

FAE Technology, on the other hand, is giving up 7.1 percent, subject ddi profit taking after five sessions ended with a bullish candle.

Among currencies, the euro changes hands at USD1.0933 against USD1.0944 recorded in Tuesday's European stock close while the pound is worth USD1.2624 from USD1.2624 on Tuesday evening.

Brent crude is worth USD75.75 per barrel versus USD77.41 per barrel at Tuesday's close. Gold, meanwhile, trades at USD2,055.44 an ounce from USD2,058.07 an ounce on Tuesday evening.

Wednesday's macroeconomic calendar includes, in the afternoon, from the U.S., the 30-year mortgage rate report at 1300 CET and at 1600 CET the ISM index of manufacturing purchasing managers and the November new jobs JOLTs.

By Maurizio Carta, Alliance News reporter

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