(Alliance News) - European stock markets are showing a bullish trend before the bell rings Friday, despite firm words Thursday from a U.S. Federal Reserve official who insisted that the U.S. central bank will keep interest rates high for some time.

Federal Reserve Vice Chairman Lael Brainard said Thursday that interest rates will have to remain high for some time even if inflation slows, promising that the central bank intends to "stay the course" in fighting price increases.

"Even with the recent moderation, inflation remains high and monetary policy will have to be sufficiently tight for some time," Brainard said in a speech prepared for an event in Chicago.

In economic news-before trading, producer prices in Germany rose 21.6 percent in December 2022 compared to December 2021. As reported Friday by the Federal Statistical Office, the increase in producer prices slowed for the third consecutive time. In November, the rate of change from the same month of the previous year was 28.2 percent, in October 34.5 percent. The peak was in August and September with an increase of 45.8 percent each. Compared with November 2022, producer prices decreased by 0.4 percent.

Also noted before the opening were target price increases for Intesa Sanpaolo by Jefferies and ODDO BHF, while Jefferies itself also raised its target price for Banco BPM and BPER Banca.

In corporate news, Saipem announced Friday that it has been awarded two offshore contracts totaling about USD900 million. These are a deepwater oil field in the Santos Basin in the South Atlantic, 270 kilometers off the coast of São Paulo, Brazil.

Assicurazioni Generali, meanwhile, announced Thursday evening that it will initiate the purchase of its own shares to be used to execute the group's long-term incentive plan called the "LTI Plan 2022-2024" approved by the shareholders' meeting in April. The buyback transaction was authorized by the shareholders' meeting and is for the purchase of a maximum number of treasury shares of 10.5 million.

The FTSE Mib, therefore, rises 130.00 points, after closing 1.8 percent in the red at 25,596.28 Thursday evening.

In Europe, London's FTSE 100 is up 42.80 points, Paris' CAC 40 is in the green by 40.00 points, and Frankfurt's DAX 40 is up 65.50 points.

Among Italy's smaller listings on Thursday evening, the Mid-Cap gave up 1.5 percent to 42,247.09, the Small-Cap closed down 0.8 percent to 29,443.60, and Italy Growth finished 0.7 percent in the red to 9,516.91.

On the main list in Piazza Affari, only Leonardo and Iveco Group were saved, which closed up 1.9 percent and 1.6 percent. UniCredit finished just above par.

Leonardo and the General Secretariat of Defense and National Armaments Directorate announced Thursday that they have signed a contract to exercise options for additional AW169M LUH helicopters destined for Austria, the Italian company announced. The acquisition contract provides for an additional 18 AW169M LUH - Light Uitlity Helicopters - destined for the Austrian Ministry of Defense, worth EUR304 million.

The oils fared badly: Tenaris closed at the bottom with minus 4.9 percent, Saipem gave up 3.3 percent and Eni 1.4 percent. Regarding the latter, Credit Suisse reported Thursday that it initiated coverage with an 'outperform' recommendation and a target price of EUR20, adding the stock to the Swiss bank's large-cap European integrated energy universe.

Snam gave up 2.2 percent. The board of directors announced Thursday that it had approved the Strategic Plan to 2026, which calls for total investments of EUR10 billion, a 23 percent increase from the previous one for the period 2021-2025 for which they amounted to EUR8 billion. Of this, EUR9 billion is earmarked for gas infrastructure.

Azimut Holding -- down 1.7 percent -- said Wednesday that based on preliminary results and initial forecasts, it expects to close the 2022 financial year with a net profit of between EUR395 million and EUR405 million, in line with the target provided to the market of at least EUR400 million under normal market conditions, despite the difficult environment throughout the year.

Total net inflows for 2022 amount to EUR8.5 billion, exceeding the upper limit of the guidance set at the beginning of the year of EUR6-8 billion.

On the mid-cap, Juventus closed 3.6 percent in the red. Yesterday, shareholders appointed new members to the company's board of directors: Fioranna Vittoria Negri, Maurizio Scanavino, Gianluca Ferrero, Diego Pistone, and Laura Cappiello joined the board.

At the top was GVS, which finished up 7.0%, followed by the only stocks in the green: Saras, up 1.7%, Italmobiliare and Brunello Cucinelli up 1.2% and 0.6%, respectively.

Webuild finished down 0.6 percent. The company announced Thursday that it is close to finalizing an agreement with Deloitte Administrators of Clough in Australia to extend the scope of the acquisition to additional projects, safeguarding the continuity of the company's business, the delivery of quality works to clients, and above all safeguarding the unique skills and know-how of its staff.

Fincantieri closed 0.8 percent in the red after announcing Wednesday that, through its U.S. subsidiary Fincantieri Marine Group, it signed a contract with CREST Wind, a joint venture between Crowley and ESVAGT, for the design and construction of a service operation vessel.

On the Small-Cap, Newlat Food closed 1.3 percent in the red. On Thursday it reported preliminary consolidated revenues for 2022 of EUR730 million, up 17 percent organic year-on-year from EUR625 million reported at the end of fiscal year 2021 and 128 percent from fiscal year 2019 when revenues were EUR320 million, the year of listing in the STAR segment of the Italian stock exchange.

I Grandi Viaggi closed at the tail end and finished down 6.2 percent. On Wednesday, the board approved the draft financial statements as of October 31, 2022 and reviewed the group's consolidated results between November 1, 2021 and October 31, 2022, reporting a net loss of EUR140,000 from a net loss of EUR1.4 million as of October 31, 2021.

At the top, however, is Autostrade Merididionali, which rallied 10 percent, followed by Piovan up 3.4 percent and Pininfarina, up 2.7 percent.

Among SMEs, Neurosoft closed in the green by 30 percent. Alfonsino also did well, ending up 29 percent. On Tuesday, the company reported revenues of EUR4.6 million in 2022, up 17 percent from EUR3.9 million a year earlier. Over the past year, however, the stock has given up 66 percent.

Doxee - up 2.5 percent - announced that it has concluded an investment agreement with Simest aimed at supporting the internationalization of the company and its Austrian subsidiary Doxee CEE Gmbh.

Medica closed in the green by 0.2 percent after announcing that Fabio Grandi will assume the role of global commercial director, effective March 2023, strengthening the current commercial structure.

In New York overnight Europe, the Dow closed down 0.8 percent at 33,007.94, the Nasdaq down 1.0 percent, and the S&P 500 gave up 0.8 percent.

Among Asian exchanges, the Shanghai Composite is up 0.8 percent, the Hang Seng is picking up 1.5 percent, while the Nikkei has rallied 0.6 percent.

Among currencies, the euro changed hands at USD1.0835 against USD1.0801 at Thursday's close. In contrast, the pound is worth USD1.2362 from USD1.2359 on Thursday evening.

Among commodities, Brent crude is worth USD86.36 per barrel from USD85.90 per barrel on Thursday evening. Gold, meanwhile, trades at USD1,928.03 an ounce from USD1,921.63 an ounce last session.

On Friday's economic calendar, retail sales will come out from Canada at 1430 CET while data on existing home sales will arrive from the US.

Among the companies in the stock market, Casasold and SIT will release their accounts for the past year.

By Maurizio Carta, Alliance News reporter

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