(Alliance News) - European stock markets-according to the futures market-are set to open without an unambiguous direction Wednesday amid fears that U.S. President-elect Donald Trump may hit European countries with tariffs after his recent threats against China, Mexico and Canada.

Federal Reserve officials expressed optimism that inflation is easing and the labor market remains robust, supporting the possibility of further interest rate cuts, albeit at a measured pace, as reflected in the minutes of the Nov. 6-7 meeting.

Officials stressed that monetary policy decisions depend on the performance of the economy and warned against premature rate cuts. The volatility of recent data and uncertainty about the impact of the neutral interest rate on economic activity made monetary policymaking particularly challenging.

Some participants suggested keeping rates at restrictive levels if inflation persists, while others advocated accelerated cuts if the labor market weakens. The meeting avoided addressing the economic implications of Donald Trump's recent victory in the presidential election, but acknowledged the need for flexibility.

The FTSE Mib-after closing Tuesday down 0.8 percent to 33,167.64-is posting a loss of 102.50 points.

In Europe, London's FTSE 100 is advancing 14.80 points, Paris' CAC 40 is giving up 29.70 points while Frankfurt's DAX 40 is advancing 9.20 points.

Last night, among the smaller listings, the Mid-Cap gave up 0.8 percent to 46,858.76, the Small-Cap lost 0.4 percent to 26,860.65, and Italy Growth was down 0.3 percent to 7,703.58.

On the Mib last night, good session for Banca Monte Paschi di Siena, up 0.6% to EUR5.8360 per share, rearing its head after two bearish sessions.

Strength also on Saipem, up 1.2%, while buying stops on Banco BPM -- down 1.1% -- after UniCredit -- in the red 1.1% -- announced a EUR10.1 billion voluntary public exchange offer.

Banco BPM announced Tuesday that the board of directors "took note of the communication" circulated by UniCredit regarding the voluntary public exchange offer on all BPM shares, an offer that "was not in any way agreed in advance with the bank."

The bank then clarified that it "will express its opinion on the offer with the timing, instruments and in the manner provided by law."

However, the note said, from its analysis of UniCredit's statement, the board found "unanimously" that the offer is based on conditions that are "completely unusual for transactions of this type" and, in the board's opinion, "in no way reflect the profitability and further potential for value creation for Banco BPM shareholders."

Snam, on the other hand, rose 1.3 percent. The company reported that Borsa Italiana accepted the GBP600 million 12-year and EUR750 million 7-year dual tranche Sustainability-Linked bond issue on the MOT Professional segment. On the stock it is mentioned that Beremberg has increased the target price to EUR4.80 from EUR4.60.

Fear of tariffs announced by President-elect Trump, push down the automotive sector and U.S.-exposed stocks. At the bottom of the main list, Stellantis lost 4.8 percent, followed by Pirelli, down 4.6 percent, Iveco Group, down 1.4 percent, and Campari, down 2.5 percent.

On the Mid-Cap, among the few bullish performers, Digital Value closed up 8.2 percent, doing better than El.En., up 3.8 percent at the close of trading.

Webuild -- down 0.2 percent -- acquired 13 percent of Eurolink, the consortium in charge of building the Strait of Messina Bridge, adding this stake to the 45 percent it already held. As Il Fatto Quotidiano writes on Tuesday, the stake, sold by Ravenna-based Cooperativa Cmc, was acquired for EUR11.3 million, taking on EUR14.6 million in debt.

Ariston Holding, on the other hand, lost 2.4 percent to EUR3.5620 per share. The stock updated a new 52-week low at EUR3.31 during the session.

On the Small-Cap, strength on Aquafil, up 2.8% after eve's loss of 2.0%.

Fidia -- up 39% -- has called a shareholders' meeting for Dec. 27, with some appointments and a proxy to the board of directors for a EUR5.0 million capital increase on the agenda, Milano Finanza explained Tuesday. After years of crisis that culminated in 2022 with a resort to composition with creditors and a financing agreement with the Dubai-based Negma fund, Fidia is now working on a relaunch under the leadership of executive chairman Luigi Maniglio, having completed payments to creditors.

Landi Renzo is doing well, up 2.0 percent. The company kicked off a EUR25.0 million capital increase under option to shareholders, marking the start of a financial revitalization plan that includes a second EUR20.0 million recapitalization reserved for Invitalia. In Monday's session, the stock had advanced 7.7 percent.

Among SMEs, Innovatec - up 11 percent - signaled that it expects to close the 2024 fiscal year with a consolidated production value in the range of EUR232-240 million from EUR215 million in 2023; Ebitda in the range of EUR30-33 million from EUR28.8 million in 2023; and a margin of about 14 percent from 13.4 percent in 2023.

Allcore rose 3.6%, ending its third session in a row among the bullish.

Circle -- up 0.8 percent -- on Tuesday announced the participation of its subsidiary Magellan Circle in the AI4COPSEC project, an initiative, coordinated by Simula Research Laboratory, that aims to revolutionize maritime surveillance and environmental crisis response using advanced artificial intelligence technologies and satellite data. As a consortium, Magellan Circle will receive a grant of EUR272,500, supporting its specialized expertise in science communication and outreach activities at the European level.

First Capital - flat at EUR15.70 per share - announced Monday that subsidiary First SICAF has increased its stake in CY4Gate to 5.3 percent of the latter's capital. The initial investment in CY4Gate dates back to the company's IPO in 2020, increased in a capital increase in 2022, and most recently through block purchases.

In New York on European night, the Dow rallied 0.3 percent, while the Nasdaq closed bullish by 0.6 percentas did the S&P 500.

Among Asian exchanges,the Nikkei gave up 0.8 percent, the Shanghai Composite is picking up 1.3 percent, while the Hang Seng is marking plus 1.5 percent.

Among currencies, the euro changed hands at USD1.0488 from USD1.0487 in Tuesday's European equities close. The pound is worth USD1.2582 versus USD1.2574 on Tuesday evening.

Among commodities, Brent crude is worth USD73.07 per barrel from USD73.49 per barrel last night. Gold trades at USD2,647.90 an ounce from USD2,623.09 an ounce Monday night.

Wednesday's macroeconomic calendar features Spanish retail sales at 0900 CET.

At 1030, focus on the GfK report on German consumer confidence while, at 1200 CET, data on job seekers will arrive from France.

From the U.S., eyes on mortgage data, due at 1300 CET, while, at 1430 CET, the focus will be on Gross Domestic Product, core PCE, trade balance, jobless claims and U.S. goods orders.

The day will close with Baker Hughes data on mining plants in the US.

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

By Maurizio Carta, Alliance News reporter

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