(Alliance News) - European exchanges finished higher Thursday, with trading rooms weighing a series of weaker-than-expected data from the United States that could encourage Fed officials to take a less aggressive approach ahead of upcoming meetings.

The U.S. economy grew 1.1 percent annualized in the first quarter of 2023, slowing from a 2.6 percent expansion in the previous three-month period and below market expectations of 2.0 percent growth. The data were released Thursday by the U.S. Bureau of economic analysis.

On the labor market front, the number of Americans filing for unemployment benefits fell by 16,000 to 230,000 in the week ended April 22, surprising market expectations of 249,000. The data were released Thursday by the U.S. Department of labor.

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 May 3 meeting has a probability priced at 85 percent for confirmation in the 475/500 bps range.

In contrast, the probability of an increase in the 500/525 bps area, an increase equivalent to 25 bps, is at 15 percent, up sharply on an intraday basis. The current target is between 475 and 500 bps.

As a result, the FTSE Mib closed up 0.2 percent to 27,158.00, the Mid-Cap was up 0.4 percent to 43,370.56, the Small-Cap picked up 0.5 percent to 29,078.70, and Italy Growth rose 0.2 percent to 9,240.56.

In Europe, London's FTSE 100 closed down 0.3 percent, Paris' CAC 40 rose 0.2 percent, and Frankfurt's DAX 40 closed just above par.

On the main list in Piazza Affari, the banking sector moved well. Banca Monte dei Paschi advanced 4.4 percent to EUR2.18 after three bearish sessions.

In contrast, BPER Banca advanced 4.0% to EUR2.65 after two sessions closed among the bearish.

UniCredit advanced 3.5 percent to EUR18.63. The bank announced that, with regard to the non-cumulative temporary write-down deeply subordinated fixed rate resettable notes of ERU1.25 billion, it will proceed with full early redemption on June 3 this year, after obtaining approval from the European Central Bank. The early redemption of the bonds will take place at par along with accrued and unpaid interest. Interest will cease to accrue on the same date of early redemption.

"UniCredit has a limited need for TLAC/MREL funding for the remaining part of the year and no need to issue AT1 instruments in the near future. UniCredit's funding is well diversified both by funding sources and geography," the bank explained.

Among the negative notes, Tenaris gave up 3.6 percent, sunk by both the downward trend in crude oil prices and the uncertain outlook for the rest of the year announced by the company this morning as it released its first quarter results. Tenaris ended the first quarter with net income more than doubling year-on-year to USD1.13 billion from USD503 million in the same period a year earlier.

Also hurting was the other blue chip that released quarterly accounts this morning, STMicroelectronics, down 8.7 percent, despite the fact that the semiconductor company posted sharp year-over-year increases in earnings and revenues in the first quarter, with net income improving 40 percent to USD1.04 billion from USD747 million in the same period a year earlier. On a quarterly basis, however, net income marks a 16 percent decline from USD1.25 billion in the last three months of 2022. Earnings per share rises 39 percent year-on-year to USD1.10 from USD0.79, but falls 17 percent quarter-on-quarter from USD1.32.

On the Mid-Cap, Alerion advanced well, picking up 6.7% to EUR28.00 after a 0.8% gain on the eve.

Good buys also on Carel Industries, which took home 6.2%, rearing its head again after four bearish sessions.

Still bad was Juventus, which in addition to news of a possible exclusion from the European cups for next season at the hands of UEFA, also paid the price for the elimination in last night's Coppa Italia semifinal. The stock closed down 3.5 percent to EUR0.2858.

Marked drop also for Saras. The stock closed down 3.0% at EUR1.1645, marking a decline for the fourth session in a row.

Also in the rear is GVS, which marks minus 2.8% with price at EUR6.03 after eve's green with 1.6%.

On the Small-Cap, Bastogi advances 2.4 percent to EUR0.6100, rearing its head after four bearish sessions.

FILA, on the other hand, advances 6.7 percent, bringing its price to EUR7.80. The stock replicated the good performance of the eve, which closed with a plus 5.8%.

Greenthesis, on the other hand, rose 0.7 percent the day after announcing that the temporary grouping of companies in which it participates as the lead company with a 30 percent share has won the contract for emergency safety works on the area of the former Enel thermoelectric power plant in Torre del Sale, in the municipality of Piombino. The total amount of the works, aimed at removing dense fuel oil in the soils, amounts to EUR20 million, and the duration of the works was quantified at 29 months from the signing of the contract.

At the tail end, Pininfarina gave up 2.4 percent after a 0.4 percent gain on the eve of the event.

Itway, on the other hand, ceded 3.2% with price at EUR1.31 and replicating the eve's contraction that closed with minus 2.9%.

Finally, among the PMIs, Ambromobiliare advances 2.3% to EUR1.34, rebounding after six bearish sessions.

Energy, on the other hand, closes by picking up 6.8 percent to EUR3.30 after a 3.4 percent loss on the eve. The stock-in the MarketScreener platform-has a target price of EUR4.00 with a single analyst rating.

In the rear view High Quality Food gave up 3.5 percent, veering lower after two sessions among the bullish.

Friulchem, on the other hand, gave up 5.6 percent, with new price at EUR1.02.

In New York at the height of trading, the Dow Jones is down 0.8%, the Nasdaq is picking up 1.7%, and the S&P 500 is in the green by 1.1%.

Among currencies, the euro changes hands at USD1.1025 versus USD1.1052 at Wednesday's close. In contrast, the pound is worth USD1.2493 from USD1.2486 on Wednesday evening.

Among commodities, Brent crude is worth USD77.98 per barrel versus USD80.75 per barrel on Wednesday evening. Gold, on the other hand, trades at USD1,984.03 an ounce from USD1,994.05 an ounce at Wednesday's close.

Friday's macroeconomic calendar features the unemployment rate from Japan at 0130 CET, followed by industrial production, and retail sales at 0150 CEST. Also from Japan, at 0500 CEST, the BoJ's monetary policy statement is expected.

At 0730 CEST, from Germany comes the inflation figure, while at 0845 CEST will come that from France and followed by Spain. In Germany at 0955 CEST it will be the turn of the unemployment rate.

At 1000 CEST from Italy it is the turn of GDP, as well as from Germany. An hour later will be that of the Eurozone. At 1200 CEST from Italy comes industrial sales.

In the US, at 1900 CEST, it is the turn of data from Baker Hughes and at 2230 CEST, as usual on Fridays, the COT Report.

Among companies, results from Agatos, BasicNet, Clabo, PLC and Zucchi, among others, are expected.

By Maurizio Carta, Alliance News reporter

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