(Alliance News) - The Milan financial center trades in the red on Wednesday, in line with Europeans, with trading rooms expressing caution ahead of the release of the U.S. inflation report -- specifically the CPI figure -- later in the day.

On the domestic data front, Italian industrial activity unexpectedly fell in March, extending the decline to the third consecutive month. This fell 0.6 percent on a monthly basis in March after falling 0.2 percent in February and contradicting market estimates of a 0.3 percent increase. On an annual basis, March's 3.2 percent decline follows February's 2.3 percent decline and surprises the market negatively, which had expected a 1.7 percent decrease.

As for the Bank of England-which will release its decision on the main rate later today-an interest rate hike of 25 basis points to 4.5 percent is widely expected as inflation remained elevated in March, with main and core rates remaining close to the all-time highs recorded at the end of last year.

On the Frankfurt path, however, according to Governing Council member Joachim Nagel, the European Central Bank may be approaching the final phase of its historic cycle of interest rate hikes. While increases in borrowing costs are not over and core inflation has yet to be tamed, the Bundesbank chief said Wednesday that he is very pleased with the ECB's monetary policy.

"We are coming to the finish line, in the sense that we are reaching the area of monetary policy that is considered restrictive," he told Deutschlandfunk radio. "I am confident that monetary policy is showing its effects."

Thus, the FTSE Mib, gives up 0.3 percent to 27,308.13.

Among the smaller listings, the Mid-Cap is giving up 0.6 percent to 43,099.18, the Small-Cap is giving up 0.4 percent to 28,492.99, and Italy Growth is just below par at 9,129.70.

In Europe, the CAC 40 in Paris is giving up 0.2 percent cpsì as is the DAX in Frankfurt, while the FTSE 100 is giving up 0.2 percent.

In Milan on the highs is BPER Banca, which is posting a 3.9% gain pointing to its fourth straight session on the bullish side.

Buyers on Telecom Italia, which advances 1.3% with price at EUR0.2734, awaiting the accounts to be released later in the day and, for the moment, taking the head of the list.

DiaSorin, on the other hand, rises 1.7 percent bringing its price to EUR103.90 on the eve of the release of accounts.

At the bottom, Inwit gives up 2.9 percent with price at EUR12.04 and heading for the third session in a row to end on the bearish side. After the good accounts, also came the target price increase from Goldman Sachs and JP Morgan. The company reviewed and approved the interim report as of March 31, 2023, with net income coming in at EUR82.9 million, up 22 percent from the same period 2022. Revenues stood at EUR233.6 million, up 13 percent from the same period 2022.

Rear-ends also for Amplifon, which gives up 1.7 percent to EUR34.83 per share positioning its snout toward the third session on the bearish side.

On the Mid-Cap, Brembo advances with 3.9 percent benefiting from good accounts. The brake company said Tuesday that its board of directors reviewed first-quarter results, reporting a net profit of EUR76.8 million up 7.2% from EUR71.7 million in the same period of 2022. As of March 31, 2023, revenues amounted to EUR961.9 million from EUR857.6 million up 12 percent from the first quarter of 2022.

Antares, on the other hand, rises 1.3 percent, on the eve of quarterly results and bringing assets on the monthly time frame to around 12 percent.

PharmaNutra, on the other hand, gives up 1.9 percent, the subject of profit taking after 5.9 percent assets on the eve of the day. Monday saw the release of the interim report as of March 31, which closed with net income for the period amounting to EUR5.4 million compared to EUR3.5 million as of March 31, 2022. Consolidated net revenues as of March 31, 2023 amounted to EUR23.6 million, up EUR4.8 million from the same period last year.

SOL reported Wednesday that first-quarter revenues increased 14 percent year-on-year to EUR365.9 million from EUR322.3 million in the same period a year earlier. The stock is not convincing traders at the moment, who make selling prevail and bring the stock into negative balance of 3.2 percent.

On the Small-Cap, strength on the Giglio Group stock, which has been bullish since the bell rang bringing the bar forward 3.8 percent. The stock since the beginning of the year has given up about 31 percent of market cap.

CSP International also quarters high, rising 3.5 percent bringing the price to EUR0.38. High trading volume is regsitra on the stock, amounting to more than 58,000 pieces compared to the three-month daily average of about 16,500.

The board of directors of Unieuro - down 7.5 percent - on Tuesday evening reviewed and approved the consolidated financial statements as of February 28, 2023, which closed with an adjusted net profit of EUR19.3 million compared to EUR53.9 million in the 2021-2022 fiscal year. Consolidated profit, on the other hand, was EUR10.2 million compared to EUR44.6 million in the previous year. The board proposed a dividend of EUR0.49 per share, up from EUR1.35 in the previous year.

Among SMEs, Gismondi 1754 takes the lead after two bearish sessions by rising 4.7 percent to EUR5.60.

ESI, on the other hand, advances 3.4 percent with price at EUR2.16. A few days ago the company announced that the period for the exercise of option rights relating to the offer to shareholders of a maximum of 1.3 million newly issued ordinary shares of ESI S.p.A., without the indication of nominal value, resulting from the capital increase of a maximum of about EUR2.7 million including any share premium, has ended.

Relatech--up 4.7 percent after two bearish sessions--reported Wednesday that it had reviewed management data as of March 31 showing consolidated sales revenues at the end of the first quarter of about EUR24 million from EUR10.4 million--up about 130 percent from the first quarter of 2022.

In New York overnight Europe, the Dow Jones gave up 0.2 percent, the Nasdaq 0.6 percent, and the S&P 500 left 0.5 percent on the parterre.

Among currencies, the euro changed hands at USD1.0954 versus USD1.0951 at Tuesday's close. In contrast, the pound is worth USD1.2623 from USD1.2612 on Tuesday evening.

Among commodities, Brent crude is worth USD76.87 per barrel versus USD75.42 per barrel Tuesday evening. Gold, meanwhile, trades at USD2,029.33 an ounce from USD2,024.83 an ounce at Tuesday's close.

On Wednesday's macroeconomic calendar, from the US, at 1300 CEST, room for the US mortgage market report while at 1430 CEST it will be the turn of the inflation figure. At 1630 CEST, eyes on the crude oil stocks data and the Cushing inventory. At 1900 CEST, a 10-year Treasury bond sta is scheduled instead.

By Maurizio Carta, Alliance News reporter

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