(Alliance News) - European stock markets opened lower Wednesday, with market sentiment hit by weak industrial activity in China, which raised fears about a potential global slowdown.

In addition, investors remained cautious due to continued concerns about the debt ceiling debate in Washington. The pact negotiated by Speaker Joe Biden and House Speaker Kevin McCarthy successfully cleared a significant hurdle last Tuesday, and is now set to be debated Wednesday in the House of Representatives.

China's manufacturing PMI released by the NBS unexpectedly dropped to a five-month low of 48.8 in May from 49.2 in April, missing market estimates of 49.4. The latest figure also indicated the second consecutive month of contraction in industrial activity due to weak domestic and global demand.

In the CME Group platform's FedWatch Tool, using futures also based on the actual federal funds rate or EFFR, the confirmation of the rate at the June 14 meeting has a 34 percent probability for confirmation in the 500/525 bps range. In contrast, the 25 bps rise in the 525/550 bps target is priced at 67%.

Thus, the FTSE Mib, opens trading in the red by 0.5 percent at 26,440.60.

In Europe, Paris's CAC 40 contracts 0.7 percent, London's FTSE 100 gives up 0.6 percent, and Frankfurt's DAX trades minus 0.5 percent.

Among the smaller listings, the Mid-Cap is down 0.4 percent to 41,854.94, the Small-Cap is in the red 0.3 percent to 27,315.20, and Italy Growth is just above par at 9,110.54.

On the main index in Piazza Affari, among the few bullish performers is Banca Monte dei Paschi, which is up plus 1.7 percent.

A2A is rising 0.6 percent, on the heels of eve's 1.6 percent gain.

Leonardo is giving up 1.9 percent to EUR10.26 per share, following eve's 1.7 percent decline.

Iveco Group also trails behind, posting minus 1.8 percent to EUR7.02 per share and trading in the red for the third session in a row.

On the cadet segment, Brunello Cucinelli gives up 1.4 percent, with price at EUR78.70 per share.

Also down the same 1.3 percent are SOL and Sanlorenzo.

Among the bullish few, Antares gets off to a good start, posting a plus 0.7% at EUR7.04 per share.

In the SmallCap segment, boost on Mondo TV, which moves ahead 9.15 percent to EUR0.4050 on the heels of eve's red 0.5 percent.

In the red, also the dominant color on this list, CSP International marks a minus 3.2% at EUR0.3600 per share, positioning itself as the worst on the list.

Caleffi, on the other hand, gives up 1.9 percent with new price at EUR1.02.

Among SMEs, however, Fenix Entertainment rebounds, posting a plus 31% after two sessions in which it left an aggregate of about 26% on the parterre.

Eles, meanwhile, rises 6.9 percent to EUR1.62 per share, following a 3.5 percent decline in the previous session.

Among Asian exchanges, the Nikkei marked a 1.4 percent red, the Hang Seng is giving up 2.3 percent, and the Shanghai Composite closed 0.6 percent in the red.

Among currencies, the euro changed hands at USD1.0674 against USD1.0723 at Tuesday's European equities close. In contrast, the pound is worth USD1.2360 from USD1.2407 on Monday evening.

Among commodities, Brent crude is worth USD73.15 per barrel versus USD74.27 per barrel last night. Gold, on the other hand, trades at USD1,956.39 an ounce from USD1,961.39 an ounce Tuesday night.

On Wednesday's macroeconomic calendar, at 0730 CEST, room for Germany's inflation, followed at 0955 CEST by the German unemployment rate. At 1000 CEST, it will be the turn of Italian GDP.

At 1300 CEST, focus on the US mortgage rate and applications, at 1600 CEST on new jobs JOLTs, and at 2230 CEST on weekly oil stocks.

Among the companies in the Piazza Affari, the results of MeglioQuesto are expected.

By Maurizio Carta, Alliance News reporter

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