(Alliance News) - On Wednesday, European stock markets--according to the futures market--are set for a sharply downward opening, on the heels of declines seen on Wall Street, driven by aggressive remarks from major central banks that have seen investors go to recalibrate interest rate cut expectations.

On Tuesday, Federal Reserve Governor Christopher Waller indicated that the central bank may not cut rates as aggressively as the market expects, echoing European Central Bank officials who have opposed accommodative posturing in the trading rooms.

The annual inflation rate in the UK unexpectedly rose to 4.0 percent in December from the nearly two-year low of 3.9 percent in November and above market forecasts of 3.8 percent. The data were released Wednesday by the Office for National Statistics.

This is the first increase in the inflation rate in ten months.

?Thus, the FTSE Mib is expected to fall 275.00 points after closing above par at 30,337.62 last night.

In Europe, Paris' CAC 40 is given down 80.00 points, the FTSE 100 down 92.00 points while Frankfurt's DAX 40 is expected down 165.00 points.

Among the smaller listings last night, the Mid-Cap rallied 0.1 percent to 44,309.75, the Small-Cap closed in the red 0.4 percent to 27,584.21, while Italy Growth ended in a tie at 8,237.68.

On the bullish side of the Mib last night, Mediobanca advanced 2.4 percent after opening slightly lower. On Monday it announced that it had successfully completed the placement of a new Tier 2 subordinated bond with a 10.25-year maturity - maturing in April 2034 - and a call option in April 2029, for a total amount of EUR300 million. The bank was also awarded the Financial Advisor mandate by Antares Vision, which drops 16 percent on the Small-Cap. In detail, the mandate involves analyzing the financial situation of the Antares Vision group and supporting it in identifying a strategy for its reorganization and optimization.

Ferrari, on the other hand, closed up 1.9 percent, with price at EUR319.10 per share after a 1.9 percent red on the eve of the meeting.

Saipem crossed the finish line in the green by 1.7 percent after reporting that the Algerian Supreme Court ruled in the criminal case initiated in December 2022 against the company in connection with its participation in a 2008 tender for competitive FEED studies related to the Rhourde Nouss QH project, confirming the company's acquittal.

Amplifon, on the other hand, gave up 3.1 percent, following up on the eve's decline that ended with minus 1.6 percent.

Stellantis--in the red by 1.1 percent--reported Friday that its venture capital fund, Stellantis Ventures, announced its stake as a strategic investor in Tiamat, a French company that develops and commercializes sodium-ion battery technology.

Marked sell-offs also on Interpump, which closed down 1.9 percent, following a 1.5 percent red on eve.

On the Mid-Cap, Salvatore Ferragamo closed the session down 3.4 percent at EUR10.90 per share.

Red also for Fincantieri, which posted minus 3.0%. On the stock it is mentioned that Helikon Long Short Equity Fund Master ICAV raised its short on the stock to 0.60% from 0.52%.

Iren gave up 0.1 percent after announcing Monday that it has issued an eight-and-a-half-year bond-the fifth green bond-of EUR500 million.

Saras, on the other hand, raised the bar 5.4%, with new price at EUR1.70 per share. Of note, Marshall Wace cut its short on the stock to 1.07% from 1.18%.

Good buying also on Lottomatica, which raised the bar by 4.4 percent, on which there is high trading volume. This, amounting to 1.4 million pieces changed hands, compares with the atre-month daily average of about 209,000.

On the Small-Cap, Sabaf took home 4.0 percent to EUR18.60 and touching during the session its new 52-week high at EUR18.70.

Also doing well was algoWatt, which closed bullish by 5.4%, showing up with a bullish candle for the third consecutive session.

FNM fell 0.2% after announcing Monday that it has decided to take over 80% of Viridis Energia Spa from Lagi Energia 2006 Srl and HNF Spa, which hold 55.7% and 33.3%, respectively.

Safilo Group gave up 0.9 percent after announcing Tuesday that it and Aeffe -- down 0.9 percent -- had proceeded with the early renewal of the global license agreement for Moschino and Love Moschino eyewear collections until December 2033.

Among SMEs, ESI rose 2.6 percent after announcing Monday that it has signed a contract with a leading multinational oil & gas company for the turnkey EPC construction of a new photovoltaic plant with a total capacity of 10 MWp in Piedmont. The contract amount of approximately EUR5.7 million will be accrued in fiscal year 2024.

Farmacosmo, on the other hand, rallied 4.5 percent, following the eve's green with 2.3 percent.

Omer climbed 3.8 percent after announcing Monday that it has signed a contract with Hitachi Rail to supply furniture components and fairings for 40 Frecciarossa ETR 1000 trains commissioned by Trenitalia. The value of the contract, the amount of which was not disclosed, "will contribute to the backlog in a percentage within a range between 15 and 20 percent," the company specified in a note.

Saccheria F.lli Franceschetti closed down 0.8 percent after announcing Tuesday that its board of directors reviewed its operating income as of December 31, in which it came in at EUR17.8 million from EUR23.2 million in the same period last year.

Among the U.S. stock markets on European night, the Dow gave up 0.6 percent, the S&P 0.4 percent while the Nasdaq lost 0.2 percent.

In Asia, the Nikkei gave up 0.4 percent, the Hang Seng was 4.0 percent in the red while the Shanghai Composite closed 2.1 percent down.

Among currencies, the euro changed hands at USD1.0869 against USD1.0878 recorded in Tuesday's European stock close while the pound is worth USD1.2633 from USD1.2659 last night.

Brent crude is worth USD77.78 per barrel versus USD78.46 per barrel at Tuesday's close. Gold, meanwhile, trades at USD3,018.58 an ounce from USD2,033.83 an ounce last night.

On Wednesday's economic calendar, at 1100 CET will come Eurozone inflation.

At 1300 CET, eyes on the US mortgage rate report while, at 1430 CET, it will be the turn of the US retail sales data. At 1515 CET, the industrial production figure is expected while at 1615 CET, ECB number one Christine Lagarde will speak.

Finally, at 2230 CET, from the US will come the data on weekly oil inventories.

On the corporate calendar in Piazza Affari, no special announcements are expected.

By Maurizio Carta, Alliance News reporter

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