Stock markets in the red, oil and BoE weigh.

(Alliance News) - On Thursday, on the day when the Bank of England's decision on interest rates was expected, major European stock markets showed some pain, especially the FTSE 100.

In fact, the BoE raised the benchmark interest rate by 50 basis points to 5.0 percent at its June meeting, marking the 13th consecutive hike.

This decision surprised market expectations of a smaller rate hike of 25 basis points and pushed borrowing costs to the highest level since the 2008 financial crisis in an attempt to combat persistent inflation.

"The FTSE 100 fell to three-week lows today as investors worry about the impact of further rate hikes on the British economy. Losses are even more pronounced on the mid-cap FTSE 250 because of its exposure to the UK. A recession in the UK now seems inevitable, with the Bank of England committed to raising rates, and at a faster pace. Everything is now subordinate to the task of keeping inflation in check, and the increased risk of recession is accepted as a necessary evil," commented Chris Beauchamp, chief market analyst at IG.

In addition, "Oil bulls are fervently hoping for a recovery in seasonal demand, as today's 2 percent drop seems to suggest a renewed descent. The Bank of England's renewed love for tighter policy is seen as a change of pace among central banks, and the risks to oil demand are clear."

Thus, the FTSE Mib closes down 0.7 percent to 27,410.08, the Mid-Cap 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.

In Europe, London's FTSE 100 ends down 0.8 percent, Paris' CAC 40 gives up 0.9 percent, while Frankfurt's DAX 40 loses 0.3 percent.

On the main index in Piazza Affari, 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 rises 0.3% 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 closes 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 gains 0.7 percent, after acer communicated that it has exercised its option right for the outright acquisition of the sports performance of the 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 gives up 0.7 percent, after announcing on Thursday two novelties related to its international development plan to strategic areas in China and the United States: in the Asian country, the company has entered into an agreement to expand a production plant, while overseas it has 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 rises 0.4 percent after it announced Thursday that it has signed an industrial partnership agreement and acquisition, through its wholly owned subsidiary Var Group Spa, of 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 gives up 3.1 percent after reporting Wednesday that it has 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 closes down 1.0 percent, on Wednesday voted 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 sits on the bottom and gives up 24 percent, while it does best of all Bellini Nautica, which rises 9.0 percent.

CrowdFundMe gives 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 at the height of trading on Thursday, the Dow is in the red by 0.1 percent, the Nasdaq is up 0.5 percent, and the S&P 500 is up 0.1 percent.

Among currencies, the euro changes hands at USD1.0955 versus USD1.0952 on Wednesday's European equities close. In contrast, the pound is worth USD1.2743 from USD1.2733 last night.

Among commodities, Brent crude is worth USD74.43 per barrel versus USD77.03 per barrel at Wednesday's close. Gold, on the other hand, trades at USD1,923.35 an ounce from USD1,932.00 an ounce last night.

In addition, U.S. crude oil inventories fell by 3.8 million barrels in the week ended June 16, compared to market expectations of a 329,000 increase, according to EIA's Petroleum Status Report data released Thursday.

On Friday's economic calendar, with Chinese stock exchanges closed for holidays, the GfK index of UK consumer confidence is due at 0101 CEST.

Half an hour later, from Japan comes inflation while at 0230 CEST it is the turn of the manufacturing purchasing managers' index.

In Europe, from the UK at 0800 CEST comes retail sales, while from Spain an hour later GDP is released.

Between 0915 CEST and 10C0 CEST the manufacturing PMI indices from Spain, Germany, France, the Eurozone and the UK will be released.

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

Among the companies listed in Piazza Affari, no particular announcements are expected.

By Claudia Cavaliere, Alliance News reporter

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