(Alliance News) - Europe's major stock markets open sharply lower Thursday, with investors preparing for the ECB meeting, quarterly U.S. GDP data in the afternoon, and a day packed with earnings releases across the region.

While ECB President Lagarde went out of her way to insist that the bank is not done on the rate hike front, "it would be extremely foolhardy to raise rates again in a week when economic data have shown little sign of recovery," comments Michael Hewson, Chief Market Analyst at CMC Markets.

"It is already almost certain that the third quarter has seen the EU economy slide into contraction, and the latest October data showed few signs of likely change.

Turning to the U.S. economy, which continues to show remarkable resilience even after numerous rate hikes, today we get the first iteration of third quarter GDP. Recent data would suggest that today's numbers will confirm that the U.S. economy grew at the fastest pace since the fourth quarter of 2021, and at more than double the rate of the first and second quarters, which could pose problems for the Federal Reserve when it meets to decide whether to raise rates, or perhaps wait until December," the analyst concluded.

The FTSE Mib opens down 1.1 percent to 27,125.91, the Mid-Cap gives up 0.6 percent to 37,554.10, the Small-Cap retreats 0.3 percent to 23,941.84 as Italy Growth at 7,666.56.

London's FTSE 100 opens down 0.7 percent, Paris' CAC 40 gives up 1.1 percent and Frankfurt's DAX 40 is in the red by 1.4 percent.

On the main list in Piazza Affari, Saipem ends at the bottom and gives up 5.1 percent. The company reported Wednesday that in the first nine months of the year it reported revenues of EUR8.36 billion, up 19 percent from EUR7.03 billion in the same period a year earlier.

As of September 30, adjusted Ebitda stood at EUR640 million, up 44% from EUR445 million in 2022.

Stellantis -- down 1.8 percent -- and Leapmotor announced Thursday that Stellantis plans to invest about EUR1.5 billion to acquire roughly 20 percent of Leapmotor, in which Stellantis will become a major shareholder. The agreement also includes the establishment of Leapmotor International, a 51-49-share joint venture led by Stellantis, with exclusive rights to export and sell as well as manufacture Leapmotor products outside the Chinese region. "This agreement," reads a statement, "marks the first global partnership in the electric vehicle sector between one of the world's leading automakers and a Chinese OEM specializing in NEVs.

Red also for UniCredit, which is down 1.7 percent. On Wednesday, ratings agency Standard & Poor's upgraded the bank's stand-alone credit profile from 'bbb' to 'bbb+,' one notch above Italy's sovereign rating.

FinecoBank gives up 1.5 percent, with S&P Global reaffirming its long-term 'BBB' rating with stable outlook and maintaining its short-term 'A-2' rating.

STMicroelectronics also got off to a bearish start, giving up 4.0 percent after announcing Thursday that it ended the third quarter of the year with net revenues at USD4.43 billion, up 2.4 percent from the previous quarter and 2.5 percent from the same period in 2022, when they were USD4.32 billion.

Quarterly net income is USD1.09 billion down slightly by 0.8 percent with USD1.10 billion in the same period 2022.

Intesa Sanpaolo retreats 1.3 percent. Wednesday reported that the extraordinary tax calculated on the increase in net interest income amounts to about EUR828 million for the group and about EUR797 million for the parent company.

The board of directors resolved that it will propose to the shareholders' meeting, when approving the annual financial statements, that an amount of about EUR1.99 billion, corresponding to 2.5 times the amount of the tax of about EUR797 million, be allocated to non-distributable reserves.

Enel -- down 0.1 percent -- and its listed subsidiary Enel Chile announced Wednesday that they had finalized the sale to Sonnedix of their entire shareholdings in the share capital of Arcadia Generación Solar, a Chilean company that owns a portfolio of four operating photovoltaic plants totaling about 416 MW of installed capacity. The buyer paid a total consideration of USD556 million, or about EUR525 million, corresponding to 100 percent of the enterprise value agreed by the parties.

In addition, Enel announced Wednesday that it had finalized the sale to the Greek company Public Power Corporation SA of all the interests held by the Enel group in Romania.

PPC paid a total consideration of about EUR1.24 billion, corresponding to about EUR1.90 billion in terms of enterprise value referring to 100 percent.

The board of directors of Italgas -- up 0.3 percent -- approved the consolidated results for the first nine months, which closed with adjusted net income attributable to the group of EUR316.7 million, up nearly 11 percent from September 30, 2022 when it was EUR285.9 million. Total revenues were EUR1.37 billion, up 26 percent over the same period last year from EUR1.09 billion.

Among the other bullish few, Nexi advanced 1.0% followed by ERG and Telcom Italia, in the green by 0.7% and 0.3%.

On the cadet segment, Fincantieri retreats 0.7%. It announced Wednesday that it has signed with the Consortium coordinated by Naviris and bringing together the company, France's Naval Group the Spain's Navantia and other components from Greece, Denmark and Norway, all contract documents related to the Modular and Multirole Patrol Corvette for the implementation of the first phase of the European Patrol Corvette project.

The total value of this first phase is EUR87 million and is strongly supported by the European Commission through the European Defense Fund.

Salvatore Ferragamo is down 0.6 percent. It reported Wednesday that the board of directors unanimously approved the purchase for USD42.0 million by the company and its subsidiary Ferragamo Hong Kong of minority interests in the three joint ventures Ferragamo Moda (Shanghai) Co. Limited, Ferragamo Retail Macau Limited and Ferrimag Limited, established to distribute Ferragamo products in the Greater China area.

The stakes-which will be purchased by Imaginex Holdings Limited and Imaginex Overseas Limited-are 25 percent of FMS and FIM and 24.8 percent of FRM, with the result that the company and FHK will become its sole shareholders.

Among the bullish minority shareholders are MARR in the green by 1.3 percent and ENAV, which rises with 0.5 percent.

On the Small-Cap, Risanamento opens up 0.3%. On Wednesday it announced that its general manager, Davide Albertini Petroni, has resigned and will remain in office until December 31.

Esprinet - up 0.5 percent - announced Tuesday that the deed of merger by incorporation into of its wholly owned subsidiary 4Side has been signed.

Mondo TV - in the red by 1.9 percent - announced Tuesday that it has signed an agreement with Mi Media International, a major Asian distributor, for the placement of the animated series Meteo Heroes in Brunei. The final agreement covers freetv, internet, mobile rights for the next three years against payment of a "flat fee."

Among SMEs, TraWell Co is not yet trading. The company announced Wednesday that it has won the tender to renew the provision of its integrated baggage protection services at Nice International Airport for seven years.

The new agreement includes a new multi-service concept store for passengers in addition to integrated baggage protection services.

Cofle--in the red by 3.5 percent--reported Wednesday that the board of directors reviewed consolidated sales for the first nine months of the year, which came in at EUR46.8 million, up nearly 18 percent from the same period last year, when it was EUR39.7 million.

The board also resolved to propose to the shareholders' meeting the adoption of a plan to purchase and dispose of treasury shares up to a maximum number not exceeding 20 percent of the company's capital. The amount that can be used for the purchase of treasury shares was set at EUR1 million.

In Asia, the Nikkei closed down 2.2 percent at 30,575.00, the Hang Seng was down 0.3 percent at 17,010.00

and the Shanghai Composite closed in the green 0.5 percent to 2,988.30.

In New York, the Dow closed down 0.3 percent to 33,035.93, the Nasdaq gave up 2.4 percent to 12,821.23 and the S&P 500 lost 1.4 percent to 4,186.77.

Among currencies, the euro changed hands at USD1.0542 against USD1.0573 recorded in Wednesday's European stock close while the pound was worth USD1.2091 from USD1.2128 last night.

Among commodities, Brent crude is worth USD89.91 per barrel from USD87.46 per barrel at yesterday's close. Gold, on the other hand, trades at USD1,986.99 an ounce from USD1,977.38 an ounce last night.

Thursday's macroeconomic calendar includes a six-month BOT auction in Italy at 1110 CEST.

The highlight of the day is scheduled for 1415 CEST, with the ECB's rate decision, followed - half an hour later - by a lecture by the president, Christine Lagarde.

In the US, eyes on jobless claims and Gross Domestic Product, coming at 1430 CEST, while data on natural gas stocks will be released at 1630 CEST, an hour before two auctions of four- and eight-week T-Notes while seven-year Treasury bonds will be sold at 1900 CEST. The day will close with the Federal Reserve's balance sheet, due at 2230 CEST.

Among companies in Piazza Affari, accounts from Campari, Eni, Maire Tecnimont, Mediobanca and Moncler, among others, are expected.

By Chiara Bruschi, Alliance News reporter

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