(Alliance News) - The Milan blue chip index ended on the losing side Friday, hovering around the 23,700 mark, with trading rooms remaining guarded amid lingering concerns over a recession, uncertain outlook regarding inflation and interest rate hikes by major central banks.

Just on monetary policy, regarding possible moves by the Federal Reserve, on 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 Feb. 1 December meeting has a 67 percent probability priced in on the upper range of 450/475 bps. In contrast, 33 percent have a probability of an increase in the 475/500 bps area.

At the national level, the Italian Senate on Thursday evening approved the government's budget for 2023, thus before the end of the year and thus avoiding the institution of the provisional financial year. Prime Minister Giorgia Meloni's first Finance Bill brings the deficit for next year to 4.5 percent of GDP, allocating more than EUR21 billion in tax breaks and bonuses to help businesses and households cope with the persistent energy crisis.

Thus, at the close of trading, the FTSE Mib closed 1.5 percent in the red at 23,706.96, thus ending 2022 with a contraction of more than 13 percent. On the annual range, the low of 20,183 is recalled while the high was 28,212.39.

Among the smaller lists, the Mid-Cap closed down 1.1 percent at 39,374.15, the Small-Cap rose just above par at 27,739.53 while the Italy Growth finished up 0.1 percent at 9,250.52.

In Europe, Paris' CAC 40 gave up 1.6 percent, London's FTSE 100 lost 0.8 percent, and Frankfurt's DAX 40 closed down 1.1 percent.

In Milan, on the main list of Piazza Affari, Amplifon also closed in the red-after being the only bullish stock for much of the session-dropping 0.2 percent at the final bell.

Telecom Italia, on the other hand, gave up 3.8 percent, veering downward after two sessions closed in the green.

Enel closed down 1.4 percent after announcing that Enel Brasil, a subsidiary through Chilean listed company Enel Américas, has finalized the sale of its entire stake in Brazilian power distribution company CELG Distribuição CELG D, amounting to about 99.9 percent of the latter's share capital, to Equatorial Participações e Investimentos, a subsidiary of Equatorial Energia.

Another major state-owned investee, Eni, is also in the red. The six-legged dog's stock--down 2.3 percent--reported Thursday that Plenitude, through its U.S. subsidiary Eni New Energy US, has acquired the 81 MW Kellam photovoltaic plant located in North Texas, 50 miles from the Dallas Fort Worth metropolitan complex. The plant, sold by Hanwha Qcells USA, joins the other assets in Texas and the rest of the United States in Plenitude's portfolio, which with this transaction reaches an installed capacity of 878 MW in the U.S. market. The plant is built on more than 150 hectares of land and the energy produced will be sold to a local power company.

In the cadet segment, Cembre retreats 1.6 percent, following a 1.6 percent gain in the previous session.

Tod's, on the other hand, drops 2.0 percent, after eve's 1.5 percent gain.

Tinexta loses 1.7 percent. The company announced Wednesday that it had signed a binding agreement to acquire a 20 percent stake in Defence Tech Holding Società Benefit through a wholly owned vehicle.

On the bullish side of the list, purchases on Wiit, which closes ahead 2.0 percent, ringing up its third straight session on the bullish side.

Also doing well is Ariston Holding, which moves ahead 2.3%, repeating eve's green with 1.6%.

On the Small-Cap side, Seri Industrial closes up 3.6 percent. The stock registers unusually high volume with over 237,000 pieces traded on a three-month average of about 87,000.

Landi Renzo, on the other hand, rises 2.0 percent on the heels of eve's 1.1 percent green.

Conafi gives up 2.3%, ending for the third session in a row on the bearish side.

Next Re retreats 0.9%. The company recently announced that it has signed with IHC Verona Srl, a company subject to the management and coordination of AHC International Consulting AG, the final purchase and sale agreement on the property for hotel use located in Verona, for a sale price of EUR7.4 million plus tax.

Among SMEs, Alfonsino retreats with 3.9 percent, retracing after yesterday's green with 8.4 percent.

Almawave, on the other hand, rises with 0.8 percent, following a 0.7 percent gain in the previous session.

Pharmacosmo brings home an asset of over 11%, after also closing in the green on the eve of the session albeit with 0.5%. The stock traded high, with more than 89,000 changed hands compared to a three-month average of 18,700.

In New York on Thursday, the Dow Jones is giving up 0.8 percent on par with the S&P, while the Nasdaq is giving up 0.9 percent.

Among currencies, the euro changes hands at USD1.0686 versus USD1.0665 at Thursday's close. In contrast, the pound is worth USD1.2058 from USD1.2060 on Thursday evening.

Among commodities, Brent crude is worth USD83.94 per barrel from USD83.20 per barrel on Thursday evening.

Gold, on the other hand, trades at USD1,815.34 an ounce from USD1,814.70 an ounce on Wednesday night. Just on bullion, this could perform relatively well in 2023, even if U.S. real rates are significantly less favorable than in previous years, writes Pictet Management in a forecast analysis authored by Luc Luyet.

Although U.S. real rates may not rise much above their current levels-they were at 1.5 percent on Dec. 22-it is likely that they will remain well into positive territory in 2023, making the price of gold expensive relative to real rates alone.

"But investment demand for gold is also driven by trends in the U.S. dollar, fears of high inflation and global uncertainties. In particular, our forecast of some weakening of the greenback should favor gold. Our 12-month projection is USD1,880 per troy ounce," the Swiss asset manager writes.

On Monday's economic calendar, at 0945 CET, Italy's manufacturing purchasing managers' index will be released, then five minutes later France's, then Germany's, and at 1000 CET will come the Eurozone's.

The London and New York stock exchanges will remain closed.

Among companies in Piazza Affari, no particular announcements are expected.

By Maurizio Carta, Alliance News reporter

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