(Alliance News) - European stock markets are set for a downward opening on Thursday, weighed down by weak global sentiment in light of Federal Reserve Chairman Jerome Powell's recent comments and warmer-than-expected U.S. employment data that supported the case for further monetary tightening.

On Wednesday 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 March 22 meeting has a 22 percent probability of a hike 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, just before the bell rings, is expected to be just above par, after closing in fractional green at 27,911.52 Wednesday evening.

In Europe, Paris' CAC 40 is expected to be down 17.00 points, London's FTSE 100 is expected to be down 30.40 points, and Frankfurt's DAX 40 is expected to be down 46.00 points.

Among the smaller lists last night, the Mid-Cap finished in the red 0.2 percent to 44,733.95, the Small-Cap was up 0.6 percent to 30,631.91, and Italy Growth finished in the green 0.1 percent to 9,472.26.

On the main list, Inwit advanced 4.1 percent to EUR11.49. The stock closed with a trading volume over 4.4 million pieces, against a three-month daily average of about 902,000.

STMicroelectronicas rose 3.4 percent to EUR46.50, following a 1.8 percent decline on the eve of the day.

BPER Bank closed up 2.5 percent to EUR2.82. Of note, Société Générale raised its target price on the stock to EUR2.90 from EUR2.60.

Tenaris, on the other hand, gave up 2.1 percent, breaking a five-session bullish trend.

Hera - in the red by 1.0 percent - announced Wednesday that it had finalized, through its subsidiary Herambiente Servizi Industriali and with Reggiani Albertino Spa's ACR, the deal that marks the birth of Italy's largest operator in environmental remediation and industrial waste global service, with widespread coverage throughout the country.

On the Mid-Cap, stretched FC Juventus, which closed ahead 5.1 percent.

High quarters also for Piaggio, which advanced 2.3 percent, after eve's 0.9 percent decline.

The buy side also prevails on Intercos, among others, which marked a plus 2.0% by rearing its head again after seven sessions among the bearish.

The board of directors of Acea -- in a 0.9 percent letter -- on Wednesday approved the draft consolidated 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 proposed the distribution of a dividend of EUR0.85 per share, in line with 2021.

The board of Fincantieri -- down 4.3 percent -- announced Tuesday that it had approved the draft financial statements as of Dec. 31, 2022, reporting a loss for the year of EUR324 million from EUR22 million as of Dec. 31, 2021, after discounting charges outside ordinary operations or nonrecurring expenses of EUR238 million, of which EUR164 million were non-cash.

On the Small-Cap, Esprinet advanced 7.6 percent, rearing its head after two sessions ended among the bearish.

Gefran, on the other hand, appreciated 5.4 percent, bringing its price to EUR10.60, with accounts expected on Thursday.

Geox gave up 3.9 percent, with price at EUR1.13 per share, as it awaited results due for release on Thursday and ended a three-session bullish mini-trend.

In contrast, ePrice gave up 1.7 percent, on the heels of eve's 0.9 percent red.

Among SMEs, Cyberoo gave up 9.4 percent, following eve's red 1.9 percent.

AmbroMobiliare gave up 0.7 percent, following eve's green with 2.9 percent.

Intred, on the other hand, rose 1.9 percent, after eve's red with 1.5 percent.

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 Asian marketplaces, the Nikkei rallied 0.6 percent, the Shanghai Composite gave up 0.2 percent, while the Hang Seng is giving up 0.4 percent.

Among currencies, the euro changed hands at USD1.0553 against USD1.0555 at Wednesday's close. In contrast, the pound is worth USD1.1850 from USD1.1834 on Wednesday evening.

Among commodities, Brent crude is worth USD82.76 per barrel versus USD82.38 per barrel on Wednesday evening. Gold, on the other hand, trades at USD1,813.50 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

Comments and questions to redazione@alliancenews.com

Copyright 2023 Alliance News IS Italian Service Ltd. All rights reserved.