(Alliance News) - The Mib on Wednesday closed up timidly at the end of a mostly bearish swing session, with the point bar in the 34,200 area -- still at highs since 2008 -- and as trading desks express caution ahead of the announcement of the Federal Reserve rate decision later today.

The U.S. bank is expected to hold the Fed funds rate steady at 23-year highs -- between 5.25 percent-5.5 percent -- for the fifth consecutive meeting, with officials repeatedly stressing the importance of being certain that inflation is on a sustainable path toward 2 percent before considering any adjustment to the cost of money.

New quarterly economic projections will then be released, and the focus will clearly be on the dot plot to understand potential interest rate cuts and the timing of such moves.

On the domestic front, Italy's industrial production fell on both a monthly and annual basis in January, extending the period of decline, as reported by Istat on Wednesday. It fell 1.2 percent on a monthly basis in January after rising 1.2 percent in December, with the latter figure revised from the initial 1.1 percent increase. On a year-on-year basis, industrial production fell 3.4 percent after falling 1.5 percent in December, revised from the initial 1.5 percent decline.

As a result, the FTSE Mib took home a 0.1% gain to 34,293.29, the Mid-Cap advanced 0.2% to 47,271.31, the Small-Cap climbed 0.3% to 27,523.80, and Italy Growth rose 0.6% to 8,162.87.

In Europe, London's FTSE 100 closed just above par, Paris' CAC 40 marks a red 0.5 percent, while Frankfurt's DAX 40 picked up 0.1 percent.

On the Mib, Terna closed with bullish trend of 3.6 percent, better than the Mib with with new price at EUR7.84 per share. Goldman Sachs raised the target price to EUR7.95 from the previous EUR6.65. The company also reported that Moody's confirmed its 'Baa2' long-term rating on the company, with a Stable outlook.

The rating - one notch higher than Italy's - comes following the presentation of the 2024-2028 business plan, with the highest investments ever recorded in Terna's history, "aimed at strengthening the company's central role as an enabler of the energy transition and of an increasingly articulated, sustainable and innovative electricity system," the agency explained. In the wake of Moody's, S&P also confirmed its long-term rating at 'BBB+' with a Stable outlook.

Prysmian, meanwhile, closed up 1.4 percent at EUR49.41, in its third bullish session and with new 52-week high touched at EUR50.10.

Poste Italiane -- trailing down 3.9 percent -- unveiled its new strategic plan to 2026 on Wednesday, which calls for growth in investments and estimates rising revenues and profits over the plan's span. The dividend is expected to be no less than EUR1.00 from 2026 while revenues are expected at EUR13.5 billion in 2028, with average annual growth of 3%. Operating income is expected at EUR3.2 billion, with CAGR of 4%, and net income is expected at EUR2.3 billion at the end of the plan, with annual growth of 4%.

DiaSorin, on the other hand, gave up 3.0% with nuvo price at EUR91.82 per share, closing the bluechip list after two sessions ended with bullish candle.

Eni closed down 1.6 percent to EUR14.32 per share, after a 2.4 percent green in the previous session. Worth mentioning, Beremberg cut its target price to EUR15.00 from EUR17.00.

On the cadet segment, Fincantieri advanced well, going up 7.5 percent to EUR0.6720 and updating during the session the annual high at EUR0.6750.

Good buying was also made on Mondadori, which advanced 0.9 percent after the 0.5 percent red on eve.

Fitch Ratings announced Wednesday that it had upgraded the outlook on Acea -- which advanced with 2.7 percent -- from Negative to Stable, confirming the long-term issuer default rating at 'BBB+.' In addition, the rating agency confirmed the short-term IDR at 'F2' and the long-term senior unsecured rating at 'BBB+'.

Saras, on the other hand, is priced bullish by 0.3 percent at EUR1.78, unchanged on the previous session. Of note, Barclays cut its target price on the stock to EUR1.75 from EUR1.70 per share.

Juventus FC, on the other hand, gives up 3.0%, with price at EUR2.32, after two sessions closed with a bullish candle.

On the Small-Cap, boost on Piovan, in the upper quarters priced bullish with over 10%, ala rebound after three bearish sessions.

Seco, on the other hand, rallied 5.0 percent. Earlier this week it reported that it ended 2023 with adjusted net income up to EUR22.9 million from EUR20.5 million in 2022.

B&C Speakers -- down 1.4 percent -- reported Tuesday that it ended 2023 with a total group profit of EUR13.9 million, up 13 percent from EUR12.3 million as of December 31, 2022. The company proposed to pay a dividend of EUR0.70 per share from EUR0.60 in 2022.

FILA -- in the red by 0.6 percent -- on Tuesday reported that it ended 2023 with consolidated revenues of EUR779.2 million from EUR764.6 million as of Dec. 31, 2022. Normalized net income in the period was EUR40.6 million from EUR42.8 million in 2022. The company said it has proposed to distribute a dividend of a maximum total amount of EUR6.1 million, confirming that of EUR0.12 per share in 2022.

Eurotech - double-digit bearish with 14 percent - reported that it ended 2023 with a net loss of EUR3.1 million compared to a loss of EUR1.6 million in 2022. Revenues fell to EUR93.8 million from EUR94.3 million while, at constant exchange rates, there would be a 3.6 percent year-on-year increase.

Among SMEs, ESI rallied 8.8 percent, after the eve's gain closed with plus 2.1 percent.

Growens advanced 2.1 percent, rewarded by good 2023 accounts. The company finished last year with a net profit of EUR53.2 million, compared to the EUR2.5 million red booked in 2022, "as a result of the extraordinary divestment operations carried out in 2023."

At the end of 2023, the net financial position was EUR42.10 million positive, compared to EUR66,000 at the end of 2022.

Italian Wine Brands - in the green by 4.9 percent - announced Wednesday that it had concluded its share buyback program. Under the plan, the company bought back 30,000 of its own shares, paying an average of EUR17.58 each, for a total value of about EUR527,000.

Confinvest, on the other hand, gives up 4.1 percent, following Tuesday evening's 3.3 percent decline.

For Eprcomunicazione, on the other hand, the red was 8.7 percent, subject to profit taking after two strongly bullish sessions.

In New York, the Dow is rising 0.1%, the Nasdaq is on the parity line, and the S&P 500 is advancing marginally.

Among currencies, the euro changes hands at USD1.0857 against USD1.0860 recorded in Tuesday's European stock close while the pound is worth USD1.2717 from USD1.2719 on Tuesday evening.

Brent crude is worth USD85.78 per barrel versus USD86.63 per barrel at Tuesday's close. Gold, meanwhile, trades at USD2,157.09 an ounce from USD2,154.43 an ounce on Tuesday evening.

Thursday's macroeconomic calendar includes at 0050 CET Japan's trade balance, followed at 0130 CET by the services PMI index. At 0800 CET, from Italy, it will be the turn of the data on car registrations, which will also come from France and Germany.

At 0930 CET, Germany's manufacturing PMI is due, followed at 1000 CET by the Eurozone current account balance and services PMI, the latter also coming 30 minutes later from the United Kingdom.

At 1300 CET, the Bank of England will release its interest rate decision.

At 1330 CET, from the U.S., there will be the report on unemployment claims, followed at 1445 CET by the manufacturing and services PMI.

At 1500 CET, there will be the release of the report on existing home sales.

In the evening, at 2130 CET, there will be the release of the Federal Reserve's weekly balance sheet.

On the corporate calendar, among numerous corporate results, those of Bellini Nautica, Enel, Gambero Rosso, Unipol, and UnipolSai are expected.

By Maurizio Carta, Alliance News reporter

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