(Alliance News) - European stock markets -- to which Milan is no exception -- are expected to open lower Friday, with trading rooms espousing the narrative that major central banks will keep interest rates higher for longer than previously expected.

"European markets fell yesterday for the fourth consecutive day -- driven lower by concerns that central banks will scrutinize indications that economic activity is slowing and prioritize the battle against inflation -- and look set to open lower this morning," said CMC Markets analyst Michael Hewson.

On Thursday, the Bank of England surprised with a 50 basis point interest rate hike, larger than expected, as the market had expected a 25 basis point increase. However, after Wednesday's "glowing" consumer price index data, positioning on a 50 bps increase had increased, with the expectation that a more aggressive move would better tame the U.K.'s annual inflation rate.

Thus, the FTSE Mib, after closing down 0.7 percent at 27,410.08 last night, is marking a loss of 170.00 points.

In Europe, London's FTSE 100 marks a decline of 22.80 points, Paris' CAC 40 gives up 34.00 points, and Frankfurt's DAX 40 loses 106.00 points.

Last night the Mid-Cap closed down 0.5 percent to 42,363.99, the Small-Cap in the red 0.3 percent to 27,065.51, while Italy Growth gains 0.2 percent to 9,077.53.

On the main index of Piazza Affari last night, Saipem struggled, which closed at the tail end of the list, giving up 2.8 percent. Among oils, Tenaris left 1.4 percent on the parterre as did Eni.

Terna - down 0.9% - reported that in May Italy consumed a total of 24.3 billion kWh, a 6.3% decrease compared to the same month in 2022. Renewables produced a total of 10.4 billion kWh, covering 43 percent of electricity demand compared to 36 percent in May 2022. Production from renewables in May was broken down as follows: 40% hydro, 28% photovoltaic, 15% wind, 13% biomass, 4.4% geothermal.

Leonardo rose 0.3 percent after announcing Thursday that it has signed a Memorandum of Understanding with Airbus to jointly promote integrated training systems and develop responses to future Air Dominance challenges.

With May sales of Stellantis falling against the trend in the EU, the stock gives up 0.9%.

Telecom Italia closed 2.9 percent in the red as the board reviews reports from the five advisors on the EUR23 billion offer--to buy Netco--from KKR and the EUR19.3 billion proposal from Cassa Depositi e Prestiti together with the Australians from Macquarie.

On the Mid-Cap, Tamburi Investment Partners - in the red by 0.2 percent - announced Thursday that it has reached an agreement with the Mercati family - Aboca group - to jointly invest in the development of Apoteca Natura, the first international network of benefit pharmacies, promoters of a health-conscious concept and integration in the healthcare supply chain. The investment will be made through the subscription of a capital increase in the newly formed Apoteca Natura Investment, a holding company that will hold the entire capital of Apoteca Natura. TIP will acquire a 28.57 percent stake, while the Mercati family will retain the majority.

Juventus Football Club gained 0.7 percent, after acer announced that it has exercised its option right to acquire outright the sports performance of player Arkadiusz Krystian Milik, from Olympique de Marseille, for a consideration of EUR6.3 million, payable in three fiscal years starting in July 2023.

LU-VE gave up 0.7 percent, after announcing on Thursday two new developments related to its international development plan to strategic areas in China and the United States: in the Asian country, the company entered into an agreement to expand a production plant, while overseas it established LU-VE US Inc, a corporate name that replaces the original Zyklus Heat Transfer Inc, a company acquired in 2018.

Piaggio & C. - in the red by 1.6 percent - announced Wednesday that it had entered into a collaboration with Walt Disney Co that produced the Disney Mickey Mouse Edition by Vespa. For this collaboration, the 50cc, 125cc and 150cc Vespa Primavera is tinged in black, red, white and yellow: the colors of the World's most famous mouse born of Disney's genius.

Sesa rose 0.4 percent after it announced Thursday that it had signed an industrial partnership agreement and acquired, through its wholly owned subsidiary Var Group Spa, a 55 percent stake in Sangalli Tecnologie Srl, thus strengthening its expertise in the Digital Workspace and Collaboration sector.

On the Small-Cap segment, Mondo TV gave up 3.1 percent after reporting Wednesday that it had signed a preliminary agreement to produce, together with Voozclub, the third season of the Canimals series. Previous series have been sold in numerous countries and aired on leading broadcasters such as ITV, RAI, Canal+, Hulu and Netflix.

Edison Rsp - in the green by 0.6 percent - announced Wednesday that on June 20 the new EUR1 billion revolving credit line dedicated to covering working capital, signed on March 13 with a pool of banks consisting of BNL BNP Paribas, BPER Banca, Intesa Sanpaolo and UniCredit, became effective.

The board of directors of Esprinet, which closed down 1.0 percent, on Wednesday resolved to approve a Euro Commercial Paper program to issue one or more series of euro commercial papers to be placed with qualifiedinvestors.

The ECP program will have a duration of three years and a maximum total amount of EUR300 million, as reverted from time to time following the redemption of euro commercial papers.

Among SMEs, Fenix sat on the bottom and gives up 24 percent, while it does better than all Bellini Nautica, which rises 9.0 percent.

CrowdFundMe gave up 2.4 percent, after announcing Wednesday that it has appointed CFO SIM Spa as Euronext Growth Advisor effective July 21. CFO SIM takes over from Integrae SIM Spa, which will serve as EGA until July 20.

In New York on the European night, the Dow closed marginally in the red, the Nasdaq rose 1.0 percent, and the S&P 500 closed up 0.4 percent.

In Asia, with only the Nikkei trading, the close was negative 1.5 percent.

Among currencies, the euro changed hands at USD1.0929 versus USD1.0955 on Thursday's European stock close. In contrast, the pound is worth USD1.2711 from USD1.2743 last night.

Among commodities, Brent crude is worth USD73.22 per barrel versus USD74.43 per barrel at Thursday's close. Gold, on the other hand, trades at USD1,915.83 an ounce from USD1,923.35 an ounce last night.

On Friday's economic calendar, the manufacturing PMI indices for Spain, Germany, France, the Eurozone and the UK will be published between 0915 CEST and 1000 CEST.

Overseas, the same data for the United States will be released at 1545 CEST.

Among companies listed on the Stock Exchange, no particular announcements are expected.

By Maurizio Carta, Alliance News reporter

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