(Alliance News) - Milan opened lower in the third session of the week, with the index hovering just below the 43,400-point mark. Widespread expectations are that the Federal Reserve will implement a 25 basis point cut to the Federal Funds Rate at today's meeting, bringing the target range to 3.5%-3.75%, in line with reductions made in September and October.
This move would position borrowing costs at their lowest level since 2022. The easing action is driven by clear signs of a rapid cooling in the labor market, although policymakers are operating without several crucial government data releases, which remain delayed or suspended due to the shutdown.
Market attention will focus particularly on updates to the dot plot and interest rate projections from Fed officials for 2026. These projections are expected to highlight persistent internal divisions over the need for further easing in the face of stubbornly high inflation.
In September, the Fed projected only one rate cut for 2026. Currently, traders are pricing in roughly two additional quarter-point cuts next year, likely scheduled for June and September.
The Mib is marking a 0.4% decline at 43,394.17 points.
Paris's CAC 40 is down 0.2%, London's FTSE 100 is up 0.1%, while Frankfurt's DAX 40 is hovering just below parity.
The Mid-Cap is down 0.6% at 58,347.35, the Small-Cap slips 0.1% to 36,063.10, while Italy Growth is just above parity at 8,452.16 points.
On the Mib, Lottomatica advances 1.3% to EUR21.54 per share, turning upward after five consecutive bearish sessions.
UniCredit--up 0.2%--is moving swiftly in its process of exiting Russia, as reported by Il Corriere della Sera on Wednesday. According to Kommersant, the group led by Andrea Orcel has sold the entire long-term portfolio of its subsidiary UniCredit-Leasing to Russia's Pr-Leasing, amounting to contracts worth RUB3 billion, equivalent to EUR34 million. The deal was structured with payments pegged to the dollar, while Pr-Leasing financed the purchase in part through the issuance of virtual currency bonds, with amortization synchronized to the leasing contract cash flows.
The board of directors of Monte dei Paschi will meet on December 18 for the last regular session of the year, an opportunity to take stock of the many ongoing integration projects with Mediobanca, according to Il Corriere della Sera on Wednesday.
MPS--down 0.2%--is awaiting the ECB's opinion on that date regarding a proposed change to its bylaws that would introduce a slate from the outgoing board in view of the leadership and board renewal scheduled for April, thus enabling the calling of an extraordinary shareholders' meeting. However, the timeline may be extended. Approval from Frankfurt could take longer, even though the bank's aim remains to complete this phase before presenting its industrial plan.
Enel--down 0.3%--announced Tuesday that it repurchased 14 million of its own ordinary shares between December 1 and December 5. The shares were bought at an average unit price of EUR8.8271, for a total value of EUR123.9 million.
On the Mid-Cap, Technoprobe is up 1.0% to EUR13.67 per share, after dropping 1.5% in the previous session.
Banca Ifis--down 0.6%--announced it has signed the contract to acquire the 50% stake held by illimity Bank in Hype, transferring it to Banca Sella. The deal, first disclosed to the markets on November 3 and formalized on December 9, involves a consideration of EUR85 million and allows Banca Ifis to achieve an estimated capital benefit of about 55 basis points on its CET1 ratio.
Tamburi--down 0.3%--announced Tuesday that it repurchased 61,686 of its own shares between December 1 and December 5 at a weighted average price of EUR8.7255 each, for a total value of EUR538,240.56. After these transactions, the company holds 22.1 million treasury shares, corresponding to 12% of its share capital.
Philogen--down 0.4%--announced Tuesday that it repurchased 4,000 of its own shares between December 1 and December 5 at an average price of EUR22.925 each, for a total value of EUR91,700.
On the Small-Cap, It Way is up 3.1% to EUR1.33 per share, after a 3.0% decline in the previous session.
Eurotech is up 2.1%, after a 0.1% dip in the previous session that ended a four-session upward streak.
Aquafil is up 2.1%, after three consecutive bearish sessions.
At the tail end, among numerous decliners, EPH is down 3.9% to EUR0.20 per share.
Among SMEs, Compagnia dei Caraibi is up 4.1% to EUR0.3020 per share, recovering after a 7.4% drop the previous day.
Maps--up 1.9%--announced that its subsidiary Maps Healthcare has secured the renewal of its agreement with the Emilia-Romagna Region for assistance, maintenance, and professional support for the software used by the region's healthcare organizations. The new three-year agreement has a maximum value of about EUR11.8 million, up from EUR8.6 million in the previous contract, with the possibility of further extensions based on operational needs.
Mare Engineering Group--down 1.3%--has asked Eles, which has yet to trade, via a statement released Tuesday, to convene a shareholders' meeting to expand the board of directors from six to nine members, introducing three independent directors to strengthen transparency in the company's management, which is currently the subject of two competing public takeover bids. The request comes after Mare Group surpassed 30% of the voting rights exercisable at Eles meetings, thus turning its offer from voluntary to mandatory.
In New York, the Dow Jones fell 0.4%, the Nasdaq gained 0.1%, while the S&P 500 closed down 0.1%.
In Asia, the Nikkei fell 0.1%, the Shanghai Composite lost 0.2%, while the Hang Seng ended up 0.4%.
On the currency front, the euro is trading at USD1.1648 from USD1.1639 at Tuesday's equity close, while the pound is at USD1.3322 from USD1.3314 last night.
Among commodities, Brent is trading at USD62.09 a barrel from USD61.98 at yesterday's close, while gold is valued at USD4,204.67 an ounce from USD4,214.34 an ounce last night.
On Wednesday's economic calendar, at 1000 CET, Italian industrial production data is due, and at 1110 CET, there is the 12-month BOT auction.
At 1155 CET, a speech by the ECB president is scheduled, while from 1300 CET, U.S. mortgage data will be released. From 1430 CET, U.S. labor market reports are expected. At 2000 CET, the Fed's interest rate decision will be announced.
At Piazza Affari, results are expected from Homizy, Netweek, and OPS Italia.
By Maurizio Carta, Alliance News Reporter
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