(Alliance News) - European stock markets are in a bearish direction Friday, with trading rooms weighing the prospect of further policy tightening by the European Central Bank and the Federal Reserve to reduce high inflation.

Investors also weighed data showing that the British economy remained flat in the fourth quarter of 2022, in line with expectations and narrowly avoiding a recession. However, monthly GDP figures for December alone -- a month marked by widespread train strikes and bad weather -- contracted by 0.5 percent, more than the 0.3 percent expected by analysts.

On the possible path of the Federal Reserve, in the CME Group platform's FedWatch Tool -- using futures also based on the actual federal funds rate or EFFR -- the main rate hike for the March 22 meeting has a 91 percent probability of confirmation on the current range of 475/500 bps. In contrast, the probability of an increase in the 500/525 bps area is at 6%. The current target is between 450 and 475 bps.

Also on the subject of central banks, the Japanese government plans to appoint Kazuo Ueda, an economist and former member of the BoJ Policy Board, as the next central bank governor after the resignation of Haruhiko Kuroda, according to the Japanese financial newspaper Nikkei and disclosed on Friday.

The government had initially approached Bank of Japan Deputy Governor Masayoshi Amamiya as a possible successor to Kuroda, but met with firm rejection. Since then, it has sought alternative candidates.

Thus, the FTSE Mib -- on an uptrend -- is now up 0.1 percent at 27,537.66.

In Europe, London's FTSE 100 is giving up 0.3 percent as is Paris' CAC 40 while Frankfurt's DAX 40 is down 0.5 percent.

Among the smaller lists, the Mid-Cap is down 0.7 percent to 44,450.43, the Small-Cap is in the red 0.1 percent to 30,436.81 and Italy Growth is down 0.1 percent to 9,708.66.

On the main list of Piazza Affari, Inwit starts in the red, giving up 1.3% to EUR10.27 per share.

Banca Generali, on the other hand, gives up 1.1 percent to EUR33.68 per share after announcing Thursday that fiscal year 2022 ended with a consolidated net profit of EUR213.0 million, down 34 percent from EUR323.1 million in the previous year. The board also announces that it will submit a proposal to distribute dividends of EUR192.8 million, equal to EUR1.65 per share, corresponding to a total pay-out of about 91 percent of the 2022 fiscal year consolidated profit.

Iveco's board of directors -- up 9.7 percent -- announced Friday that it had approved the financial statements for 2022, which closed with an adjusted net profit of EUR225 million and EUR85 million increase over 2021. Consolidated net income is EUR159 million, up EUR83 million.

Unipol -- up 0.4 percent -- reported Friday that it closed 2022 with a net profit of EUR866 million, up from EUR796 million a year earlier.

In the cadet list, Cementir Holding is off to a good start, advancing 2.9% pointing to its fifth session to end among the bullish.

Taking the top spot on the list is Banca Ifis, in the aftermath of its results. The company reported net income of EUR141.1 million, up 40 percent to EUR100.6 million a year earlier.

illimity Bank lost ground, despite good numbers still hot from publication with a net profit of EUR75.3 million, up 15 percent from December 31, 2021.

Ascopiave a falls instead by 1.8 percent to EUR2.74 per share in the wake of eve's red with 0.4 percent.

On the Small-Cap, good start for d'Amico, which marks a plus 3.4% to EUR0.4440 echoing the eve's close with 3.5%.

Boost also on Beghelli, which picks up 2.1% to EUR0.3135 after three sessions ended in the red.

Banca Profilo fluctuates in the red by 1.1 percent as net income shrinks slightly to EUR11.1 million from EUR11.7 million a year earlier.

Ratti, on the other hand, gives up 4.5 percent, closing down the list. The stock on the MarketScreener platform is listed as 'neutral' on the short and medium term, while on the long term the inidication is 'bearish'.

Among SMEs, good start for Convergenze, which is ahead of all by rising 3.7 percent.

Friulchem advances equally with 3.6% with price at EUR1.14.

At the bottom, Altea Green Power, which gives up 2.6 percent, closes the list. The company announced on Tuesday that it had signed a second co-development agreement with Aer Soléir, an Irish group among the major players in the energy sector in Europe, in which Quantum Energy, a world leader in the sector, has a stake.

In New York on the European night, the Dow closed 0.7 percent in the red, the Nasdaq left 1.0 percent on the parterre, and the S&P 500 closed down 0.9 percent.

Among Asian exchanges, the Nikkei closed up 0.3%, the Hang Seng in the red 2.0% while the Shanghai Composite gave up 0.3%.

Among currencies, the euro changed hands at USD1.0738 versus USD1.07545 at Thursday's close. In contrast, the pound is worth USD1.2108 from USD.2153 on Thursday evening.

Among commodities, Brent crude is worth USD84.30 per barrel versus USD84.03 per barrel on Thursday evening. Gold, on the other hand, trades at USD1,859.44 an ounce from USD1,872.08 an ounce at Thursday's close.

On Friday's macroeconomic calendar, industrial production is expected at 1000 CET from Italy, and a 12-month BOT auction will be held at 1100.

In the afternoon, from Canada, employment data arrive at 1430 CET while at 1600 CET, Michigan's confidence index and inflation forecasts come out in the US.

Among the stock exchanges in Piazza Affari, the results of Banca Sistema, BasicNet and Generalfinance are expected.

By Maurizio Carta, Alliance News reporter

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