(Alliance News) - European stock markets traded higher Friday, recovering some losses from the previous session, helped by optimism about China's reopening before the Lunar New Year vacation, as traders continued to assess the outlook for global growth and future monetary policies by major central banks.

Several members of the European Central Bank debunked market posturing that the central bank would make smaller rate hikes as inflation eased. At the same time, disappointing U.S. economic data and aggressive comments by Federal Reserve officials this week fueled fears of a looming recession, although easing inflation and expectations of a slower pace of central bank policy tightening provided some support.

German producer prices rose 21.6 percent in December 2022 compared to December 2021. As the Federal Statistical Office reported Friday, the increase in producer prices slowed for the third consecutive time. In November, the rate of change from the same month of the previous year was 28.2 percent, in October 34.5 percent. The peak was in August and September with an increase of 45.8 percent each. Compared with November 2022, producer prices decreased by 0.4 percent.

Still on the economic data front, British retail sales fell 1 percent in December, disappointing market expectations of a 0.5 percent increase.

The FTSE Mib, therefore, rose 0.7 percent to 25,774.02.

In Europe, London's FTSE 100 rises 0.3 percent, Paris' CAC 40 is in the green by 0.2 percent as is Frankfurt's DAX 40.

Among Italy's smaller lists Thursday evening, the Mid-Cap is rising 0.9 percent to 42,620.87, the Small-Cap is stretching 0.8 percent to 29,629.61, and Italy Growth is in the green 0.3 percent to 9,554.46.

On the main list in Piazza Affari, up 4.8 percent was Saipem. The company announced Friday that it has been awarded two offshore contracts totaling about USD900 million. These are a deepwater oil field in the Santos Basin in the South Atlantic, 270 kilometers off the coast of São Paulo, Brazil.

Good buying also on Prysmian, which shows a 2.3 percent gain after a 1.5 percent decline on eve. The stock had previously come from six bullish sessions.

Banco BPM, on the other hand, stretches 1.4 percent to EUR3.83. Jefferies raised its target price on the stock to EUR5.00 from EUR4.90.

Amplifon, on the other hand, gives up 2.9 percent, following two previous sessions on the bearish side.

On the mid-cap side, Credem shows its muscles, appreciating 3.5 percent to EUR7.19, after the previous two sessions closed bearish. For the bank, Deutsche Bank raised its target price to EUR9.30 from EUR9.60. Jefferies, on the other hand, raised it to EUR7.60 from EUR7.40.

Saras also advances well, stretching 2.3 percent to EUR1.55 and touching near 52-week highs at EUR1.56.

Among the very few bearish performers, GVS does worst of all, retreating 1.9%, the subject of profit taking after four sessions on the bullish side.

Sales also prevail on Marr, which gives up 0.8% to EUR12.52.

On the Small-Cap, Caltgirone sprints, up 5.2% on the heels of two previous sessions in the green.

Doing even better is Enervit, which appreciates 5.1 percent following up with 1.2 percent on the eve.

SIT - up 0.3 percent - reported on Friday its preliminary result of characteristic sales realized in 2022, which amounted to EUR387.6 million up 3.3 percent from EUR375.2 million in 2021.

Newlat Food - down 0.2 percent - reported Thursday that preliminary consolidated revenues for 2022 are EUR730 million, up 17 percent organic year-on-year from EUR625 million reported at the end of fiscal year 2021 and up 128 percent from fiscal year 2019 when revenues were EUR320 million, the year of listing in the STAR segment of Borsa Italiana Spa.

Among SMEs, Finanza.Tech appreciates by 4.0 percent, after a 3.6 percent loss on the eve of the event.

Good buys also on Altea Greeen Power, which moves up 4.7 percent, breaking a four-session downtrend.

Rounding out the list is High Quality Food, which rises 6.0 percent bringing its weekly assets over 18 percent.

In New York on European night, the Dow closed down 0.8% at 33,007.94, the Nasdaq down 1.0%, and the S&P 500 gave up 0.8%.

Among Asian exchanges, the Shanghai Composite rose 0.8 percent, the Hang Seng picked up 1.7 percent, while the Nikkei closed up with 0.6 percent.

Among currencies, the euro changed hands at USD1.0850 versus USD1.0801 at Thursday's close. In contrast, the pound is worth USD1.2359 from USD1.2359 on Thursday evening.

Among commodities, Brent crude is worth USD87.03 per barrel from USD85.90 per barrel on Thursday evening. Gold, meanwhile, trades at USD1,936.58 an ounce from USD1,921.63 an ounce last session.

On Friday's economic calendar, retail sales will come out from Canada at 1430 CET while data on existing home sales will arrive from the US.

Among the companies in the stock market, Casasold and SIT will release their accounts for the past year.

By Maurizio Carta, Alliance News reporter

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