(Alliance News) - European stock markets open lower Thursday as traders weigh moves on looming aggressive monetary policy and face another busy day of corporate results in Milan.

Fed Chairman Jerome Powell's hawkish comments have weighed on markets this week, with expectations on rates rising in the United States and Europe.

BlackRock Inc and Schroders PLC are among those weighing the possibility that U.S. rates could reach 6 percent. Given the robust labor market and inflation, "we think there is a reasonable chance that the Fed will need to raise the Fed Funds rate to 6 percent, and then keep it there for an extended period to slow the economy and bring inflation down to near 2 percent," Rick Rieder, chief investment officer for fixed income at BlackRock, said in a Tuesday note.

"A terminal rate of 6 percent is no longer off the table," said Kellie Wood of Schroders PLC. "Expect to see a broad sell-off in the Australian and Asian markets today, led by the short segment, but with U.S. rates underperforming."

On Thursday, in the CME Group platform's FedWatch Tool -- using futures also based on the effective federal funds rate, or EFFR -- the main rate hike for the March 22 meeting has a 22 percent probability of a rise 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 marks a decline of 0.6 percent to 27,756.25.

In Europe, Paris' CAC 40 retreats 0.3 percent, London's FTSE 100 0.5 percent, and Frankfurt's DAX 40 is in the red 0.2 percent.

Among the smaller lists, the Mid-Cap is down 0.5 percent to 44,503.57, the Small-Cap drops 0.3 percent to 30,531.73, and Italy Growth is in the green 0.1 percent to 9,476.77.

On the main list DiaSorin gives up 2.9 percent, bringing its price to EUR111.50 per share. Exane BNP estimates a target price of EUR95.00 on the stock.

Banca Generali - down 1.5 percent - confirmed solid volume growth in February in line with the previous month. In fact, total net inflows in the month stood at EUR442 million, for a total value since the beginning of the year of more than EUR859 million.

Saipem, on the other hand, gives up 1.2 percent, pending the accounts due to be published next Tuesday.

Enel -- up 0.3 percent -- announced that it has signed an agreement to sell all of the interests held by the Enel group in Romania to the Greek company Public Power Corporation. Under the agreement, PPC will pay a total consideration of about EUR1.26 billion, corresponding to about EUR1.90 billion in terms of enterprise value referring to 100 percent.

On the Mid-Cap Tod's gives up 0.9 percent to EUR36.44, following eve's green albeit with 0.9 percent.

The board of directors of Italmobiliare - down 0.4% - on Wednesday reviewed and approved the company's consolidated financial statements and draft financial statements as of December 31, 2022. The board proposed the distribution of a dividend of EUR0.70 per share, totaling EUR29.6 million, from the profit for the year, which amounts to EUR33.5 million.

Acea's board of directors -- down 3.7 percent -- 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 the extraordinary taxation on extra-profits for EUR38.5 million," the company specifies in the released note.

Also fresh in the accounts is Fincantieri, which announced Tuesday that it had approved the draft financial statements as of December 31, 2022, reporting a loss for the year of EUR324 million from EUR22 million on December 31, 2021, after discounting charges outside ordinary operations or nonrecurring of EUR238 million, of which EUR164 million were non-cash. The stock is giving up 2.1 percent.

Among the bullish is De' Longhi, which is advancing 2.9%, rearing its head again after four bearish sessions.

On the Small-Cap, Fidia is advancing well, posting a plus 1.8% at EUR1.45, after last night's slight decline of 0.7%.

The board of directors of Pierrel--flat at EUR0.18--examined and approved the draft financial statements for the year ended Dec. 31, which record a net profit for the year of about EUR1.4 million compared to the loss at the net loss of about EUR400,000 recorded in the same period last year.

Itway retreats 4.3 percent, following a 1.3 percent green light on the eve of the event.

On Italy Growth - in a still uneventful segment - Finanza.tech steps up 2.4%, bringing the price to EUR1.10, while Estrima advances 2.1%.

Among the bearish performers, Casasold gives up 3.1 percent, after a 3.2 percent green on the eve.

Closing out the list is Cyberoo, which marks a minus 3.8% at EUR5.56 per share and wearing red for the third consecutive session.

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 gave up 0.6 percent.

Among currencies, the euro changed hands at USD1.0551 versus USD1.0555 at Wednesday's close. In contrast, the pound is worth USD1.1853 from USD1.1834 on Wednesday evening.

Among commodities, Brent crude is worth USD82.74 per barrel versus USD82.38 per barrel on Wednesday evening. Gold, on the other hand, trades at USD1,815.18 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

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