(Alliance News) - The Mib moves higher in the third session of the week, taking the point bar to the 34,100 area and following the trend of other major European exchanges. Powell said the Fed will not reduce the federal funds rate until there is greater confidence that inflation is moving sustainably toward the 2 percent target. He also said that too late or too limited a reduction in policy could weaken economic activity and employment unduly.

In Europe, investors expect the ECB to cut interest rates once or twice this year after preliminary data showed that the annual inflation rate in the euro area slowed to 2.5 percent in June.

On the domestic data front, industrial production returned to growth in May on a monthly basis while the annual decline continued, Istat reported Wednesday. This rose 0.5 percent on a monthly basis in May after falling 1.0 percent in April.

On an annual basis, May's 3.3 percent decline followed April's 3.0 percent drop, revised from the initial 2.9 percent decline.

The FTSE Mib is up 0.9% to 34,169.98, Mid-Cap is up 0.5% to 48,013.72, Small-Cap is up 0.6% to 29,193.87, and Italy Growth is down 0.1% to 8,077.36.

In Europe, London's FTSE 100 advances 0.6 percent, Paris' CAC 40 is in the green by 0.9 percent, and Frankfurt's DAX 40 gains 0.8 percent.

On the Mib, Telecom Italia advances 2.9% to EUR0.2328, rearing its head after three bearish sessions.

Saipem advances 2.6% to EUR2.30 after two bearish sessions. Of note, Barclays raised its target price to EUR3.20 from EUR2.90.

Banca Monte dei Paschi di Siena gains 1.4 percent after concluding the placement of a EUR750 million issue of Social Conditional Pass Through European Covered Bonds with a maturity of six years to July 16, 2030, to Italian and foreign institutional investors.

The issue garnered strong interest from Italian and foreign investors with orders exceeding the threshold of EUR1.2 billion allowing the coupon to be set at the level of 3.3750 percent, at a re-offer price of 99.445 percent corresponding to a spread of 65 basis points over the 6-year mid swap rate, a spread lower than that of the bank's previous covered bond issue with a maturity of 5 years.

Banco BPM announced that it has completed a new issuance of a EUR400 million Additional Tier 1 capital instrument with perpetual maturity and callable "callable" from January 2031. At the same time, the bank announced an offer to repurchase a perpetual bond with a total outstanding nominal amount of EUR400 million.

The bond, intended for institutional investors, was issued at par with a fixed coupon of 7.25 percent until July 16, 2031, payable semi-annually; should the issuer decide not to exercise the early redemption option, the coupon would be restated based on the 5-year euro swap rate at the time of the restatement date, increased by a spread of 455.3 bps, and would remain fixed for the next five years. The stock is currently flat at EUR6.34.

Brunello Cucinelli is giving up 0.6 percent to EUR90.40 per share, heading for the third session with a bearish candle.

On the Mid-Cap, buoyancy on Ariston Holding, which moves ahead 3.1% to EUR3.89 after 1.2% red on eve.

Strength also on Moltiply Group, which advances 3.1% to EUR37.10 per share rearing its head dafter a bearish mini-trend that lasted three sessions.

At the bottom, Piaggio is giving up 3.9 percent to EUR2.73 per share after 1.0 percent in the previous session.

Juventus FC is also losing ground, in the red by 0.8 percent. The company has reached an agreement with ACF Fiorentina for the outright sale of the rights to the sports performance of footballer Moise Bioty Kean. The sale comes for a consideration of EUR13 million, payable in four years, plus variable premiums of up to EUR5 million. The company said the deal generates a positive economic impact on the current year of EUR2.3 million, net of ancillary charges.

Among small-cap companies, Monrif pushes ahead 4.5 percent, after two sessions closed on a passive jump.

Avio rises 2.9% at the start after reporting that the Ariane 6 launcher successfully made its maiden flight taking off from the French Guiana Space Center, placing multiple payloads into orbit. Avio is contributing to the Ariane 6 program by providing P120C solid-propellant boosters and liquid-oxygen turbopumps for the Vulcain 2.1 main stage motor and the Vinci upper stage motor. The P120C engines have performed very well. In the future, Avio will continue to supply P120C boosters that will be used in a two configuration as for this flight or a four configuration to carry larger loads.

Landi Renzo gains 7.2 percent, placing it in nth place on the list. The company has received approval from the banking class to reshape its medium- and long-term financing agreements as part of a capital strengthening operation. The operation involves the entry of the Fondo Salvaguardia Imprese, promoted by MIMIT and managed by Invitalia into Landi Renzo's shareholder base.

The new shareholder's entry will take place through a EUR20 million reserved capital increase, promoted together with a further capital increase under option for a total of EUR25 million, guaranteed up to EUR20 million by the majority shareholder Green by Definition. Landi Renzo has received adherence from the banks contracting the pooled financing - Banco BPM, Intesa Sanpaolo and UniCredit - to the proposed financial and capital optimization intervention.

Giglio Group is giving up 4.9 percent, with new price at EUR0.3310, updating its 52-week low in this area .

Among traded PMIs, strength on High Quality Food, which is up 9.9 percent, with the stock positioning its snout toward the seventh session to close with a bullshit candle.

Franchetti, on the other hand, rises 4.9%, rebounding after four bearish sessions.

Alfonsino rises 4.0 percent after announcing Wednesday that it has signed an agreement with Pro Srls, a company that owns the Flyfood brand specializing in the rapid delivery of home delivered meals and products to more than 30 restaurants and pharmacies in the city of Jesi since 2017.

With this new partnership, Alfonsino will expand its territorial presence in the Marche region, further strengthening its position in the food delivery market. The partnership with Flyfood, which handled about 15,000 orders in 2023, will allow Alfonsino to activate the service in the city of Jesi, enriching the offer available on its app. Pro will work with Alfonsino so that, by a set date, all partners affiliated with Flyfood will become Alfonsino partners. The agreement includes a monthly royalty on transacted business generated in the city of Jesi for the next 36 months.

Mare Group gives up 0.6 percent despite the fact that the Improve research project, developed in collaboration with three industrial partners and the University of Salerno, in which Mare Group operates as the lead partner, has been approved by a decree of the Ministry of Enterprise and Made in Italy. The three-year Improve project involves the creation of an artificial intelligence-based system useful for predicting the performance of certain operating variables during a production process in order to optimize costs and improve on-time responsiveness to specific market demands.

Pharmacosm, on the other hand, retreats 3.1 percent, on the heels of the eve's decline that closed with minus 0.3 percent.

In Asia, the Nikkei closed Wednesday up 0.6 percent, the Shanghai Composite lost 0.7 percent, and the Hang Seng is giving up 0.3 percent.

In New York, at Tuesday's close, the Dow lost 0.1 percent to 39,291.97, the Nasdaq was up 0.1 percent to 18,429.29, and the S&P 500 was up 0.1 percent to 5,576.98.

Among currencies, the euro changed hands at USD1.0814 from USD1.0814 in Tuesday's European stock close while the pound was worth USD1.2802 against USD1.2794 last night.

Among commodities, Brent crude trades at USD84.71 per barrel from USD85.31 per barrel at Tuesday's close. Gold, on the other hand, trades at USD2,372.50 an ounce from USD2,360.78 an ounce last night.

Wednesday's afternoon macroeconomic calendar includes the arrival of U.S. mortgage data at 1300 CEST.

At the same time, OPEC's monthly report will arrive while at 1600 CEST it will be the turn of wholesale sales, followed half an hour later by crude oil stocks.

By Maurizio Carta, Alliance News reporter

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