(Alliance News) - Thursday continued the bearish trend as traders weighed moves on looming aggressive monetary policy and faced another busy day of corporate results in Milan. Fed Chairman Jerome Powell's hawkish comments weighed on markets this week, with expectations on rates rising in the United States and Europe.

BlackRock Inc and Schroders PLC are among those weighing the possibility that U.S. rates could reach 6 percent. Given the robust labor market and inflation, "we think there is a reasonable chance that the Fed will need to raise the Fed Funds rate to 6 percent, and then keep it there for an extended period to slow the economy and bring inflation down to near 2 percent," Rick Rieder, chief investment officer for fixed income at BlackRock, said in a Tuesday note.

"A terminal rate of 6 percent is no longer off the table," said Kellie Wood of Schroders PLC. "Expect to see a broad sell-off in the Australian and Asian markets today, led by the short segment, but with U.S. rates underperforming."

On Thursday, in the CME Group platform's FedWatch Tool -- using futures also based on the effective federal funds rate, or EFFR -- the main rate hike for the March 22 meeting has a 22 percent probability of a rise in the 475/500 bps range. In contrast, the probability of an increase in the 500/525 bps area is at 78%. The current target is between 450 and 475 bps.

Thus, the FTSE Mib marks a decline of 1.2 percent to 27,579.21

In Europe, Paris's CAC 40 retreats 0.6 percent, London's FTSE 100 is down 0.8 percent, and Frankfurt's DAX 40 is in the red by 0.6 percent.

Among the smaller lists, the Mid-Cap is down 1.0 percent to 44,293.24, the Small-Cap drops 0.3 percent to 30,529.68, and Italy Growth is in the red 0.2 percent to 9,454.19.

On the main list DiaSorin gives up 3.0%, bringing its price to EUR111.40 per share. Exane BNP estimates a target price of EUR95.00 on the stock.

Banca Generali - down 4.1% - confirmed solid volume growth in February in line with the previous month. In fact, total net inflows in the month stood at EUR442 million, for a total value since the beginning of the year of more than EUR859 million.

Also on the bottom is FinecoBank, which retreats 4.0 percent with price at EUR15.61 and with results due for publication on Tuesday.

Positive note for Prysmian, which advances with 0.3% to EUR38.62 pending results expected later in the day.

On the Mid-Cap, the board of Acea - down 3.7% - on Wednesday approved the consolidated draft financial statements as of December 31, which closed with a net profit reaching EUR279.7 million, down from EUR313.3 million, "mainly due to the effect of extraordinary taxation on extra-profits for EUR38.5 million," the company specifies in the note released.

The board of Italmobiliare -- down 0.4 percent -- on Wednesday reviewed and approved the company's consolidated financial statements and draft financial statements as of December 31, 2022. The board proposed the distribution of a dividend of EUR0.70 per share, for a total amount of EUR29.6 million, from the profit for the year, which amounts to EUR33.5 million.

Also fresh on the accounts is Fincantieri, which announced Tuesday that it had approved draft financial statements as of Dec. 31, 2022, reporting a loss for the year of EUR324 million from EUR22 million on Dec. 31, 2021, after discounting charges outside ordinary operations or nonrecurring of EUR238 million, of which EUR164 million were non-cash. The stock is giving up 5.1 percent.

Among the bullish is De' Longhi, which is advancing 5.6 percent, rearing its head again after four bearish sessions.

On the Small-Cap, Sogefi is advancing well, posting a plus 2.9% at EUR1.13.

The board of directors of Pierrel -- up 15 percent -- reviewed and approved the draft financial statements for the year ended Dec. 31, which show a net profit for the year of about EUR1.4 million compared with the loss to the net loss of about EUR400,000 posted for the same period last year.

In contrast, Mondo TV retreats 4.8 percent to EUR4.8, in profit taking after the recent bullish streak.

On Italy Growth, Finanza.tech steps up 5.8 percent to EUR1.13, while Estrima advances 2.1 percent.

Among the bearish, Casasold gives up 3.1 percent, after a green of 3.2 percent on the eve.

Closing out the list is Health Italia, which retreats 4.2% to EUR1.0250 after the session's'ttivo with 0.5%.

In New York on European night, the Dow closed 0.2% in the red, the Nasdaq up 0.4%, and the S&P 500 picked up 0.1%.

Among currencies, the euro changed hands at USD1.0551 versus USD1.0555 at Wednesday's close. In contrast, the pound is worth USD1.1853 from USD1.1834 on Wednesday evening.

Among commodities, Brent crude is worth USD82.74 per barrel versus USD82.38 per barrel on Wednesday evening. Gold, on the other hand, trades at USD1,815.18 an ounce from USD1,817.47 an ounce at Wednesday's close.

On Thursday's calendar, at 1430 CET, initial claims for unemployment benefits arrive from the U.S., while between 1730 CET and 1900 there will be U.S. Treasury auctions with 4-week, 8-week and 30-year bonds maturing.

At 1630 CET it is the turn of the EIA and Cushing oil stocks.

On the packed corporate calendar coming up are results from Alerion, Autogrill, Azimut, Danieli & C, Leonardo, Prysmian and BPER Bank, among others.

By Maurizio Carta, Alliance News reporter

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