(Alliance News) - European stock markets showed a bullish trend Thursday despite investors on Wall Street weighing aggressive words from Federal Reserve officials, causing the sell side to prevail.

"Yesterday we saw another day of record highs for the FTSE 100 as European markets once again outperformed U.S. markets, which slipped back by reversing the previous day's gains," said Michael Hewson of CMC Markets.

The Dow Jones Industrial Average closed down 0.6 percent, the S&P 500 down 1.1 percent and the Nasdaq Composite down 1.7 percent.

"While U.S. equities once again shrugged off Fed Chairman Powell's comments on Tuesday, a number of Fed officials on Wednesday doubled down on the hawkish narrative, with Fed Vice Chairman John Williams echoing Powell's comments but going a bit further by saying that rates may need to remain restrictive for a few years, which was a significant departure from recent comments by other Fed policymakers," Hewson added.

In comments reported by Bloomberg, Williams advocated a "sufficiently restrictive policy stance," adding that interest rates were "barely in restrictive territory."

"We'll have to maintain that for a few years to make sure we get inflation to 2 percent, and then eventually over time we'll bring interest rates back presumably to more normal levels," Williams said.

Thus, futures on the FTSE Mib, after closing up 0.2 percent at 27,160.73 Wednesday evening, mark a 160.00 point stretch.

Among the smaller listings on Wednesday evening, the Mid-Cap closed down 0.1 percent to 44,413.86, the Small-Cap gained 0.1 percent to 30,245.56, and Italy Growth closed in fractional green at 9,695.50.

In Europe, London's FTSE 100 is up 23.00 points, Paris' CAC 40 is up 42.00 points, and Frankfurt's DAX 40 is climbing 105.50 points.

On the Mib, Banca Mediolanum closed in the green by 0.6 percent after reporting a drop in net income in 2022, to EUR521.8 million from EUR713.1 million a year earlier. Net interest income rose to EUR407.0 million from EUR270.2 million, contribution margin increased to EUR1.43 billion from EUR1.23 billion, and operating margin rose to EUR680.3 million from EUR502.6 million in 2021.

The Common Equity Tier 1 ratio as of December 31, 2022 was 20.6 percent, a level of absolute excellence that also takes into account the distribution of dividends of about EUR369 million.

Hera - down 0.3 percent - announced Wednesday that it had approved its Business Plan to 2026, a year in which it expects a dividend to grow to EUR15 cents per share, 25 percent higher than the last dividend paid. EBITDA to 2026 is expected to be around EUR1.5 billion up EUR246 million from 2021, total investments will be over EUR4.1 billion according to estimates, up 53% from the last 5 years. The company then expects over EUR130 million in PNRR contributions, obtained to accelerate the group's investments in the territories served.

Growing profits and increased dividend. This is how Banco BPM presents itself to the financial community at the close of a positive 2022 for the bank, but at the end of trading on Wednesday it closed at the tail end of the list, in the red by 2.0%. Net income rose to EUR702.6 million or 24 percent in 2022 from EUR569.1 million in 2021 while the adjusted figure marks a 25 percent increase to EUR886.3 million from EUR710.1 million.

On the cadet segment, Cementir Holding gained 3.9 percent after announcing its 2022 consolidated pre-consolidated figures on Wednesday, reporting revenues at an all-time high of EUR1.72 billion, up 27 percent from EUR1.36 billion in 2021. These figures, the company explained, do not include the impacts of the application of IAS 29 in Turkey.

Credito Emiliano - down 1.1 percent - reported Wednesday that it was the strongest institution at the European level among commercial banks and the best in Italy, as shown by the publication on the European Central Bank's website of capital requirement data released by the relevant banks supervised directly by the Frankfurt-based authority.

The requirement taken into consideration is the Pillar 2 Requirement, which, for the Credem Group, is 1.0 percent, the best parameter in Italy and the first in Europe among commercial banks within the panel of institutions directly supervised by Frankfurt that have disseminated it.

Banca Popolare di Sondrio gave up 0.5 percent. The board of directors on Tuesday approved preliminary consolidated earnings and financial results for fiscal year 2022, which ended with a net profit of EUR251.3 million, down from EUR268.6 million a year earlier.

OVS closed in the green by 1.7 percent after announcing the purchase-in the period between January 31 and February 6-of 80,303 ordinary shares for a total value of EUR180,746.41.

On the Small-Cap segment, Greenthesis - up 0.1 percent - and Andion Italy, the Italian subsidiary of Andion Global, a world leader in the design, supply and construction of solutions for energy valorization through anaerobic digestion of agricultural by-products and organic waste, announced Tuesday that they have signed a framework agreement aimed at a joint development pathway aimed at the acquisition, restructuring and subsequent management of a cluster of plants for the treatment and energy valorization of agrifood waste, by-products and livestock manure for the purpose of biomethane production.

Caltagirone Editore -- in the green by 0.3 percent -- announced Tuesday that Piemme, the group's advertising concessionaire, and Mondadori Media, a Mondadori Spa Group company -- in the green by 0.4 percent on the Mid -- have defined a partnership aimed at promoting Tv Sorrisi e Canzoni, Chi, Guida TV and Telepiù.

The collaboration involves exclusively entrusting Piemme with the sale in Italy of advertising space for the four television and entertainment brands, in the magazine, digital channels, social and app as well as the management of sponsorships related to events.

Among SMEs, Jonix closed 5.4 percent in the red after reporting Tuesday that it ended 2022 with revenues down to EUR4.4 million from EUR6.8 million a year earlier. Revenues earned abroad amounted to EUR2.5 million, or 58 percent of the total, down from EUR4.1 million in 2021, when they amounted to 60 percent of the total. Italy shows revenues of EUR1.9 million compared to EUR2.8 million in 2021.

Franchetti closed up 4.8 percent after reporting Wednesday that it won orders worth EUR7.5 million in the fourth quarter, including EUR5.6 million in Italy alone. The group's order backlog as of Dec. 31, 2022, amounted to about EUR20 million, registering a higher-than-expected increase of 30 percent compared to last September's disclosure and allowing for extended revenue visibility for the 2025 fiscal year as well.

Among Asian exchanges, the Nikkei closed down 0.1 percent, the Hang Seng is rising 1.2 percent, and the Shanghai Composite is in the green by 1.2 percent.

Among currencies, the euro changed hands at USD1.0731 versus USD1.0720 at Wednesday's close. In contrast, the pound is worth USD1.2100 from USD1.2068 last night.

Among commodities, Brent crude is worth USD85.02 per barrel versus USD84.03 per barrel Wednesday night. Gold, on the other hand, trades at USD1,880.18 an ounce from USD1,887.35 an ounce at last night's close.

On Thursday's macroeconomic calendar, the European Union's economic forecast will be released at 1100 CET. At the same time, the EU leaders' summit is scheduled.

In the afternoon, overseas, at 1430 CET, data on continuing unemployment claims are released.

Among companies listed on Piazza Affari, the results of Banca Generali, Banca Ifis, Banca Profilo, Banco di Desio e della Brianza, BFF Bank, Buzzi Unicem, Enel, Gefran, illimity Bank, Mediobanca, Piquadro, Sanlorenzo, Unipol and UnipolSai are expected.

By Maurizio Carta, Alliance News reporter

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