(Alliance News) - European stock markets are expected to open lower Thursday as attention turns to the Bank of England, with trading rooms assessing the Federal Reserve's "aggressive pause."

The focal point of the day will be, as mentioned, the Bank of England's interest rate decision . According to market consensus quoted by FXStreet, the BoE is still expected to implement a 25 basis point increase. However, after the unexpected slowdown in overall inflation on Wednesday, the prospect of a pause in rate hikes has grown.

A quarter-point increase-if implemented-will raise the benchmark bank rate from 5.25 percent to 5.50 percent. This will raise UK interest rates to the highest level in 16 years and will be Threadneedle Street's 15th consecutive increase. In an effort to keep rampant inflation in check, the BoE has so far raised rates by a total of 515 basis points in this round of hikes.

The Fed last night announced that it had decided to keep the federal funds rate between 5.25 and 5.5 percent, the highest in 22 years. Despite the rate pause, the accompanying rhetoric has been aggressive, with Fed Chairman Jerome Powell refusing to rule out further interest rate hikes.

Projections published in the Fed's dot-plot showed the likelihood of one more increase this year, then two reductions in 2024, two less than indicated during the last update in June. Powell said that in 2024 "the time will come, and I'm not saying when," to cut interest rates.

Members of the Federal Open Markets Committee revised upward their economic growth expectations for this year, with gross domestic product now projected to increase by 2.1 percent. This is more than double the June estimate, supporting hopes that the world's largest economy is not going into recession. The GDP outlook for 2024 was raised to 1.5 percent, from 1.1 percent.

The FTSE MiB, thus, after closing up 1.6 percent at 29,229.30 last night, indicates in futures a bearish opening of 255.00 points.

In Europe, London's FTSE 100 is giving up 65.00 points, Paris' CAC 40 is retreating 73.00 points, and Frankfurt's DAX 40 is marking a decline of 126.00 points.

Among the smaller lists last night, the Mid-Cap rose 0.5 percent to 40,875.00, the Small-Cap gained 0.1 percent to 26,367.23, and Italy Growth finished up 0.2 percent to 8,594.23.

On the main list in Piazza Affari on Wednesday, Amplifon confirmed the bullish trend seen since the bell rang, rising 5.6 percent.

UniCredit -- up 4.7 percent -- on Wednesday announced plans to launch a tranche of its share buyback program for up to EUR2.5 billion.

Stellantis sales - up 3.1% - in August rose in Europe, in line with the positive trend in the European market, where registrations rose 21%.

As data from ACEA, the European Automobile Manufacturers' Association, showed Wednesday, the merged PSA Groupe and Fiat Chrysler Automobiles giant posted a 6.3 percent increase in sales in August, having registered 145,392 cars compared to 136,723 in August 2022, with market share, however, falling to 16.1 percent from 18.2 percent in 2022.

DiaSorin, on the other hand, rose 4.5 percent, taking the price to EUR89.88 and rearing its head again after three sessions among the bearish.

Among the few bearish performers, Leonardo gave up 0.3 percent while the tail end of the list was Saipem, which lost 2.9 percent to EUR1.5730 per share.

On the cadet segment, good session for Tinexta, which rose 2.2% to EUR17.09 per share rearing its head again after four sessions among the bearish.

Alerion Clean Power, on the other hand, gained 3.3 percent to EUR27.75, with the company continuing with its buyback plan. Lastly, the company informed Tuesday that it bought back its own shares - from Sept. 11 to 15 - for a total value of EUR82,000 or so.

Banca Popolare di Sondrio - up 4.1 percent - on Tuesday concluded a placement with institutional investors of a senior preferred green bond with a benchmark amount of EUR500 million and a maturity of five years with an option for early redemption from the fourth year.

Among the bearish, Salvatore Ferragamo was down 1.3 percent at EUR14.00, following up on the 0.1 percent red on the eve.

On the Small-Cap, Olidata rose 8.1 percent, bringing the weekly balance to plus 50 percent.

Retrace Centrale del Latte d'Italia, tied after an initial rise but six sessions ended among the bearish.

Good buying also on Geox, which marked a plus 3.5% with new price at EUR0.7460 per share.

Among SMEs, Ambromobiliare fell, down 5.3% despite a good start to the session.

The top of the list, however, was for MeglioQuesto, which appreciated 15 percent.

Italian Design Brands -- down 0.6 percent -- on Tuesday disclosed that it had reached an agreement to acquire 51 percent of Turri 2k Srl, a company headed by Turri - The Italian way to beauty, a historic brand operating in high-end furniture.

In New York on European night, the Dow closed down 0.2 percent, the Nasdaq gave up 1.5 percent, and the S&P 500 left 0.9 percent on the parterre.

Among the Asian exchanges, the Hang Seng is leaving 1.1 percent on the floor, the Shanghai Composite is giving up 0.3 percent, while the Nikkei left 1.3 percent on the floor.

Among currencies, the euro is changing hands at USD1.0639 against USD1.0723 on Wednesday in closing European equities, while the pound is instead worth USD1.2315 from USD1.2406 on Wednesday evening.

Among commodities, Brent crude is worth USD92.63 per barrel versus USD94.19 per barrel at Wednesday's close. Gold, meanwhile, trades at USD1,929.47 an ounce from USD1,943.42 an ounce on Wednesday evening.

On Thursday's macroeconomic calendar, at 1000 CEST, focus on the Spanish trade balance and, at 1300 CEST, on the Bank of England's UK decision on interest rates.

At 1430 CEST, U.S. unemployment claims will come out while, at 1600 CEST, it will be the turn of EU consumer confidence and a speech by European Central Bank President Christine Lagarde.

Among the companies in the Piazza Affari, the accounts of Civitanavi Systems, Conafi, Seri Industrial and Gismondi 1754, among others, are expected.

By Maurizio Carta, Alliance News senior reporter

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