Mib bullish; oils get off to a good start

(Alliance News) - European stock markets opened higher on Wednesday, helped by optimism about China's "reopening" and in anticipation of U.S. inflation data due out Thursday that could provide clues about the Federal Reserve's next move.

Fed Chairman Jerome Powell avoided commenting on the outlook for monetary policy at an event on Tuesday, while board member Michelle Bowman said the central bank should raise interest rates further to combat high inflation.

Regardless, Bowman said that "unemployment has remained low as we have tightened monetary policy and made progress in lowering inflation," in a prepared speech at an event in Florida.

On the Federal Reserve's possible path, in the CME Group platform's FedWatch Tool -- using futures also based on the actual federal funds rate, or EFFR -- the main rate hike for the Feb. 1 meeting has a 78 percent probability priced into the upper range of 450/475 bps. In contrast, the probability of an increase in the 475/500 bps area is at 23 percent.

Thus, the FTSE Mib marks a marginal rise to 25,370.03.

Among other European exchanges, the FTSE 100 marks a 0.2 percent rise, as does the CAC 40 in Paris, while the DAX 40 in Frankfurt is climbing 0.3 percent.

Among the smaller lists, the Mid-Cap gives up 0.1 percent to 41,370.78, the Small-Cap is up 0.2 percent to 28,948.63, and Italy Growth is up 0.1 percent to 9,452.88.

On the main list in Piazza Affari, among the few bearish performers is Buzzi Unicem, which is down 1.7 percent. On the stock it is reported that Beremberg has lowered the target price to EUR20.00 from EUR22.00.

Oil stocks are off to a good start, with Saipem rising 1.7 percent while Tenaris appreciates 1.8 percent.

UBS raised Azimut's fair value to EUR22.00 from EUR16.00, with the stock positioning itself bullish by 0.6% to EUR21.96.

On the cadet segment, Brunello Cucinelli takes a step back with 2.8 percent, on the heels of eve's 0.8 percent red. The stock is subject to fair value uplift by Goldman Sachs and Société Générale.

In the green -- the prevailing color on this list as well -- Cembre rises 3.9 percent after the eve's red with 0.1 percent.

Banca Monte dei Paschi, on the other hand, rises 2.0% after eve's loss of 3.5%.

On the SmallCap, the 'buy' side prevails well on Eems, which stretches 3.6% after Tuesday's red with 3.5%.

Fidia, on the other hand, rises with 3.4 percent. The stock -- on the MarketScreener platform -- shows a 'bearish' indication on the short term, 'neutral' on the medium term and again 'bearish' on the long term.

Caltagirone, on the other hand, gives up 2.5 percent, after a 3.2 percent loss on the eve.

Conafi, which marks a 2.9% red at EUR0.4080, closes the list.

Among SMEs, boost on Grifal, which stretches 9.5% to EUR2.43.

EdiliziAcrobatica - up 1.3 percent - reported Wednesday that it closed 2022 with a 17 percent year-on-year increase in contracts signed, worth EUR142 million versus EUR121 million a year earlier.

Enertronica Santerno--priced at a firm EUR0.83--on Tuesday evening informed that the Court of Bologna authorized the company to contract "predeductible finance" with illimity Bank Spa for the total amount of EUR10.0 million compared to just under EUR10.8 million initially requested.

In New York overnight Europe, the Dow closed up 0.6 percent, the S&P 500 rallied 0.7 percent, and the Nasdaq rallied 1.0 percent.

Among Asians, the Hang Seng closed up 0.5 percent, the Shanghai Composite gave up 0.2 percent, while the Nikkei took home a plus 1.0 percent.

Among currencies, the euro changed hands at USD1.0747 versus USD1.0736 at Tuesday's close. In contrast, the pound is worth USD1.2166 from USD1.2145 last night.

Among commodities, Brent crude is worth USD79.42 a barrel from USD79.94 a barrel last night. Gold, meanwhile, trades at USD1,882.48 an ounce from USD1,880.30 an ounce last night.

On Wednesday's economic calendar, at 1000 CET, retail sales data will be released in Italy, while at 1030 CET, there will be loans granted on real estate collateral in the UK, and at 1110 CET, an auction of Italian twelve-month Treasury bills is expected.

As usual, at 1300 CET, the rate on 30-year MBA mortgages and mortgage applications will be released in the US.

At 1630 CET, it is the turn of crude oil stocks.

Among the companies listed on the Stock Exchange, no particular announcements are expected.

By Maurizio Carta, Alliance News reporter

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