(Alliance News) - Major European stock exchanges opened higher Wednesday as traders reflected on the outlook for monetary policy and the prospects that central banks will cut interest rates next year.

A larger-than-expected drop in the UK inflation rate reinforced such bets. The ONS said the consumer price index rose 3.9 percent year-on-year in November, slowing sharply from the 4.6 percent increase recorded in October. The inflation reading was below the market consensus cited by FXStreet of 4.4 percent.

Producer prices in Germany also fell more than initially expected -- by 7.9 percent -- year-on-year in November, compared with the market consensus of a 7.5 percent drop and after an 11 percent slump in October. The data were published Wednesday by Destatis.

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The FTSE Mib, therefore, opens in fractional green at 30,380.80 as does the Mid-Cap at 44,211.17, the Small-Cap advances 0.6 percent to 27,414.68, and Italy Growth opens just above par at 8,120.22.

In Europe, London's FTSE 100 is in the green by 1.3 percent, Paris' CAC 40 rises 0.3 percent as does Frankfurt's DAX 40.

On the Mib, Iveco Group opens up 1.1 percent after announcing that Iveco Bus, the group's city, intercity, and tourist bus brand, will supply 153 new electric buses to Azienda Trasporti Milanesi Spa, which operates public transport in Milan and its hinterland.

The contract, worth more than EUR120 million, is part of ATM's strategic plan to offer increasingly sustainable and accessible mobility.

Higher up are Telecom Italia, leading the way with a 4.7 percent rise, and Eni, which climbs 1.2 percent. The other two oil stocks also do well: Tenaris opens in the green by 0.9% and Saipem advances 0.8%.

Leonardo -- in the red by 0.7 percent -- announced Monday that Southwest Airlines, among the largest airlines in the U.S. with about 127 million passengers carried annually, has chosen it to redefine the baggage handling system for the transit area at Denver International Airport. The contract, worth more than EUR25 million, includes a custom-developed solution for Southwest to better manage operational, manual baggage handling and transfer activities.

Stellantis opens fractionally in the red after ACEA's November data showed, for the group, a 7.3 percent drop in sales in Europe compared to November 2022. In the European market, however, registrations were up 6.7 percent compared to November 2022.

On the Mid-Cap, Seco opens up 1.7 percent. Worth mentioning, Goldman Sachs cut its target price to EUR4.40 from EUR7.10 with a 'buy' recommendation.

Better does only Maire, up 2.1%.

Credito Emiliano -- in the green by 0.5 percent -- reported Tuesday that Credito Emiliano Holding Spa bought 740,000 ordinary shares in the bank.

The shares were taken over at an average unit price of EUR8.1832, for a total value of EUR6.1 million.

Industrie De Nora -- in the red by 2.4 percent after ending up 5.2 percent -- and H2U Technologies, a developer of next-generation electrolyzers, announced Monday a research agreement to identify and develop low-cost, high-performance electro-catalysts for hydrogen production by water electrolysis.

Sesa opens flat after closing up 3.9 percent. The company announced Tuesday that it approved results for the six-month period ended Oct. 30 with a net profit of EUR41.6 million from EUR41.1 million in the same period a year earlier. Adjusted net income attributable to the group amounted to EUR50.1 million from EUR45.9 million as of Oct. 30, 2022, up 9.1 percent year-on-year. Revenue and other income grows 15 percent to EUR1.50 billion from EUR1.31 billion in the same period 2022.

Fincantieri rises 0.7 percent. It reported Friday that Vard - a Norwegian subsidiary - has signed an agreement with an international customer to build a cable-laying ship. Delivery is scheduled for the fourth quarter of 2026. The value of the contract is between EUR200 and EUR250 million.

On the Small-Cap, Gefran is not yet trading. The company announced Wednesday that it has signed an investment agreement to acquire a minority stake in Robot at Work Srl, a Rovato-based startup.

The transaction was finalized through the sale of part of the share capital belonging to the majority shareholders and subsequent capital increase, as a result of which Gefran holds a 24.83 percent stake in Robot at Work for a total consideration of EUR576,000. The consideration was paid in cash through the use of equity.

Greenthesis opens in the red by 0.5 percent after closing up 4.5 percent. On Monday it announced that it had finalized a new EUR50 million financing agreement with banks Natixis SA, Milan branch, and Intesa Sanpaolo Spa, the former as agent bank and both as lending banks and Mandated Lead Arrangers & Bookrunners. This transaction, reads the company's statement, is aimed "at broadening the financial base in order to be able to support organic investments and acquisitions by external lines."

TXT e-solutions -- up 0.3 percent -- on Monday disclosed that it sold 176,471 of its own shares to the "PIPE" fund -- private investment in public equity -- managed by Alkemia SGR Spa, at a price of EUR17.00 per share, higher than their average carrying value and compared to the average market value of the last 3 months of EUR16.23.

Among SMEs, SG Company Società Benefit opens up 3.2 percent after reporting Wednesday that its wholly owned subsidiary NET-SG Srl has signed a commercial and consulting agreement with Lorenzo De Rosa, sole director and legal representative of Antimateria Srl, which will start on January 1, 2024.

Prisms still does not trade. The company announced Tuesday that Paolo Romiti has resigned as a member of the company's board of directors.

Romiti is leaving the board effective immediately.

Cofle still does not trade after closing up 8.4 percent. Cofle announced Tuesday that it is continuing its collaboration with Ineos Automotive, which has led to the creation and customization of advanced reduced gear and differential lock and release systems, directly developed by Cofle's engineering center, for its new 4x4 off-road vehicle, the INEOS Grenadier. Cofle expects that in 2023, sales related to the order with Ineos will close at EUR1.6 million, while projections for 2024 indicate a significant increase to EUR3.8 million.

In Asia, the Nikkei closed in the green 1.5 percent to 3,675.94, the Hang Seng closed in the green 0.6 percent to 16,617.50, and the Shanghai Composite finished in the red 1.0 percent to 2,903.23.

In New York on European night, the Dow closed up 0.7 percent as did the Nasdaq while the S&P 500 finished in the green by 0.6 percent.

Among currencies, the euro changed hands at USD1.0970 against USD1.0978 recorded in Tuesday's European stock close while the pound was worth USD1.2663 from USD1.2755 Tuesday night.

Brent crude is worth USD79.82 per barrel versus USD79.35 per barrel at Tuesday's close. Gold, meanwhile, trades at USD2,041.47 an ounce from USD2,025.59 an ounce on Tuesday evening.

Wednesday's macroeconomic calendar includes, at 1100 CET from the Eurozone, construction sector output.

From the US, at 1300 CET, will come report on the mortgage market, followed at 1430 CET by the current account balance for the third quarter.

At 1630 CET, again from the U.S., crude oil stocks, EIA report and Cushing inventory. At 1900 CET, on the other hand, a 20-year bond auction is scheduled.

Finally, a 20-year Treasury bond auction is scheduled at 1900 CET.

No particular announcements are expected among the companies.

By Chiara Bruschi, Alliance News reporter

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