(Alliance News) - On Thursday, major European stock exchanges paerto the upside as they await the U.S. Consumer Price Index report for further clues on inflationary pressures and the Fed's next steps.
From the upper echelons of the Eccles Building, expectations of an easing of monetary policy by the Federal Reserve as early as March continue to be dismissed. "I anticipate that we will have to maintain tight policy for some time to fully achieve our objectives," said John Williams, president of the New York office and a member of the FOMC. Williams also explicitly signaled that a slowdown in qualitative tightening is still some time away.
Traders, however, are convinced for the most part that the first cut will occur in March, with a probability-according to the Fed funds futures market-that it will happen with a nearly 70 percent chance at the March meeting, to the tune of 25 bps.
Thus, the FTSE Mib is advancing 0.8 percent to 30,693.40.
In Europe, London's FTSE 100 is advancing 0.5 percent as is Paris' CAC 40, while Frankfurt's DAX 40 is advancing 0.8 percent.
Among the smaller listings, the Mid-Cap is advancing 0.4 percent to 44,439.38, the Small-Cap is up 0.5 percent to 28,023, and Italy Growth is just above par at 8,269.56.
On the Mib, Iveco is off to a good start, advancing 4.0 percent in its sixth bullish session.
High quarters also for Stellantis, which pushes ahead 1.6% after a 1.1% gain on the eve.
Banco BPM -- in the money with 0.6 percent -- announced 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. Orders exceeded EUR3.2 billion, or four times the amount issued, with requests from 200 investors.
Inwit - in the red by 0.7 percent - announced on Wednesday that on January 8 it formalized an option to extend the maturity date of the EUR500 million sustainability-linked term loan from April 2025 to April 2027. The option allows the extension of the maturity term of the loan on the same economic conditions and with the same lenders.
Goldman Sachs raised Brunello Cucinelli's target price to EUR112.00 from EUR90.00, with the stock up 1.3 percent.
Also on a negative note was Moncler, which posted a minus 0.2%, pulling the oars in the boat after three bullish sessions.
On the MidCap, Alerion is driving the bar up 1.5 percent, with the company continuing its regular share buyback. Most recently, it reported that it purchased its own ordinary shares - between January 2 and 5 - for a total value of EUR169,000 or so.
Boost also on Tamburi, which scores a plus 1.6 percent after the 0.9 percent red on the eve.
Also positioning itself well is GVS, which is advancing 1.5 percent to EUR5.44 per share after falling 2.0 percent on eve.
Tinexta is advancing 1.4 percent, following eve's decline by the same percentage.
Goldman Sachs cut Salvatore Ferragamo's target price to EUR11.80 from EUR13.60. The stock is giving up 0.3 percent to EUR11.52.
On the SmallCap, Caleffi leads the way, advancing 4.6 percent and pointing to its fourth consecutive bullish session.
Good buys also on Autostrade Meridionali, which advances 2.5% bringing its weekly basis assets to 22%.
Class Editori is also trading well, moving ahead 2.3%, in position for the bullish quaternary.
Among SMBs, Energy is pushing ahead 4.9%, after 2.7% green on eve.
ConstructionAcrobatic--up 1.5 percent--reported Thursday that the number of contracts signed during 2023 increased 48 percent from 17,925 contracts in 2022 to 26,550. This result reflects the marked growth in the number of clients, with a year-on-year increase of 100 percent.
Growens - flat at EUR5.38 - reported on Wednesday fourth-quarter 2023 CPaaS business line sales and SaaS business line annual recurring revenues as of December 2023.
In New York overnight Europe, the Dow rose 0.5 percent, the Nasdaq rallied 0.8 percent, and the S&P 500 climbed 0.6 percent.
Among Asian exchanges, the Nikkei rallied 1.8 percent, the Hang Seng gained 1.3 percent, and the Shanghai Composite posted a plus 0.3 percent.
Among currencies, the euro changed hands at USD1.0985 against USD1.0954 recorded in Wednesday's European stock close while the pound is worth USD1.2771 from USD1.2722 last night.
Brent crude is worth USD77.55 per barrel versus USD77.48 per barrel at Wednesday's close. Gold, meanwhile, trades at USD2,034.75 an ounce from USD2,030.25 an ounce last night.
Thursday's macroeconomic calendar includes, at 1000 CET, the release of the monthly ECB report and Italian industrial production.
On the bond front, at 1110 CET, Italy publishes data on 3-, 7-, 15- and 30-year BTP auctions.
Overseas, at 1430 CET, US continuing unemployment claims and inflation data are released.
Among companies listed on the Stock Exchange, no particular announcements are expected.
By Maurizio Carta, Alliance News reporter
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