(Alliance News) - The Mib index is down taking it to the 27,700 area Friday - breaking four consecutive sessions of rises - with fears of substantial rate hikes by the Federal Reserve returning to center stage after stronger-than-expected economic data from the US.

However, in Milan - bucking the trend - it is a good day for the banking stocks segment, which is up plus 0.6 percent and is close to a 30 percent gain since the start of 2023.

Cleveland Fed President Loretta Mester stressed that rates will have to go above 5 percent "and stay there for a long time." In addition, St. Louis Fed President James Bullard said he thought a half-percentage-point increase was possible at the next meeting in March.

In Europe, annual producer inflation in Germany fell for the fourth consecutive month in January, although less than expected.

Meanwhile, important to note how on Friday natural gas futures in Europe - measured on the benchmark Dutch TTF - touched EUR49.5 per megawatt-hour, the lowest intraday level since September 2021, and are about to close the week down nearly 7 percent, with the European energy crisis seemingly over for now.

Europe is approaching the end of the winter season with full storage at about 65 percent, well above the 10-year average of 54 percent for this time of year, due to warmer-than-usual temperatures, record LNG imports, and an increase in power generation from alternative energy sources, including wind and nuclear.

Thus, the FTSE Mib marks a 0.4 percent red at 27,733.59.

In Europe, Paris' CAC 40 is retreating with 0.7 percent, London's FTSE 100 is giving up 0.2 percent while Frankfurt's DAX 40 is losing 0.8 percent.

Among the smaller lists, the Mid-Cap is in the red 0.4 percent to 44,635.92, the Small-Cap is giving up 0.5 percent to 30,154.22, and Italy Growth is down 1.0 percent to 9,609.38.

On the main list in Piazza Affari, among the few bullish performers is BPER Banca, which rises 3.2% confirming its bullishness since the bell rang. The stock trades at a new 52-week high of EUR2.79.

Also ahead is another banker, Banco BPM, which advances 1.6 percent to EUR4.24. Of note, Keefe, Bruyette & Woods gives a target price on the stock at EUR5.81.

In red, the dominant color on the list, Recordati is giving up 3.6 percent after greening on the eve with 1.0 percent and awaiting results due on Tuesday. Also reported on the stock is that Barclays cut its target price to EUR35.00 from the previous EUR40.00.

Tenaris, on the other hand, retreats 3.2% to EUR16.87 per share. Last night the stock did best of all up 8.0% after announcing record results for 2022 on Wednesday night. As of December 31, 2022, Tenaris reported net sales of USD3.62 billion in the last quarter, up 76% from USD2.06 billion in the fourth quarter of 2021. Growing by triple digits, meanwhile, was net income, which rose to USD803 million in the last quarter of the year, 139% higher than the same period in 2021. Net income for the 12 months amounted to USD2.55 billion, "and reached a record high," as the company explained in a note, up 142 percent on USD1.05 billion in the year 2021.

Low also for Amplifon, which joins in the last places of the segment with a 2.3 percent decline after two sessions closed in the black.

On the MidCap segment, Wiit retreats 1.3 percent to EUR20.98. It should be mentioned that the company continues with its buyback program, where it most recently announced that it has purchased its own ordinary shares for a total value of EUR240,000 or so.

Seco, on the other hand, gives up 4.8 percent, bringing the price to EUR5.13 and with weekly liabilities going over 6 percent.

Marked sales also marked Antares Vision, which retreats 2.1 percent, positioning itself for its third session to end on the bearish side.

On a positive note, however, banking stocks also stand out on this list. Monte dei Paschi appreciates 4.4 percent before ending in a volatility auction, Credito Emiliano rises 2.2 percent, and Banca Ifis advances 1.3 percent,

On the SmallCap, Eukedos rises 2.0% to EUR1.27 ahead of results due on Wednesday.

It does better than all Eems, which scores a plus 2.7%, heading for the fourth bullish session in a row.

Tesmec rears its head again after the bearish trend with which it had started trading. The company said Thursday that it has reviewed some preliminary management data for fiscal 2022, which shows revenues up about 25 percent from fiscal 2021, thanks to the performance of the rail sector, the recovery of the trencher sector in the U.S. market, and an improved mix in the energy sector.

At the tail end of the list is Bioera, which gives up 6.0 percent to EUR0.2800.

Among the SMEs, Frendy Energy gives up 7.5 percent to EUR0.2460. Worth mentioning is that the stock - which has not detached its dividend since 2016 - on a weekly basis still marks an asset of about 7.6 percent.

Rear-ends also for Alfonsino, which gives up 5.3 percent in profit taking after two sessions of significant gains.

Positive note, among the list's minority, for Ecosuntek, which marks a 2.7 percent gain at EUR19.20. The stock - on the MarketScreener platform - has a 'bullish' indication on the short, medium and long term.

The buy side also prevails on Gismondi1754, which advances 2.3% to EUR6.70.

In New York on European night, the Dow closed down 1.3 percent, the Nasdaq down 1.8 percent, and the S&P 500 left 1.4 percent on the parterre.

Among currencies, the strength of the dollar was confirmed. The euro changed hands at USD1.0642 versus USD1.0678 at Thursday's close. In contrast, the pound is worth USD1.1931 from USD1.2012 last night.

Among commodities, Brent crude is worth USD83.85 per barrel versus USD83.64 per barrel Thursday night. Gold, on the other hand, trades at USD1,822.00 an ounce from USD1,823.27 an ounce at Thursday's close.

On Friday's economic calendar, the Fed's Bowman speech will be given at 1445 CET, while Baker Hughes data will be released at 1900 CET. Finally, as usual on Friday, at 2130 CET, it will be the turn of the COT Report.

By Maurizio Carta, Alliance News reporter

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