(Alliance News) - The Powell effect is also hitting European stock markets, with futures predicting a downward opening for the Old Continent's major indexes following the Federal Reserve's number one's testimony to Congress.

"Should the totality of the data indicate that more rapid tightening is warranted, we would be prepared to increase the pace of rate hikes," the U.S. central bank president said in prepared remarks released ahead of his appearance at a U.S. Senate hearing.

Strong data on employment, consumer spending, manufacturing production and inflation in January point to a partial reversal of the previous weakening, likely due to "seasonally warm weather in January," Powell said.

IG futures give the FTSE Mib down 65.0 points or 0.2 percent after being in the red 0.7 percent at 27,761.57 Tuesday evening.

London's FTSE 100 is expected down 12.0 points or 0.2%, Paris' CAC 40 is shown down 10.6 points or 0.1% and Frankfurt's DAX 40 is expected down 35.5 points or 0.2%.

In Milan last night, the Mid-Cap gave up 0.7 percent to 44,821.93, the Small-Cap gave up 0.2 percent to 30,481, and the Italy Growth is down 0.3 percent to 9,473.01.

On the main list, Saipem gave up 3.4 percent, with price at EUR1.4280. Of note, Voleon Capital Management raised its short position on the stock to 0.61 percent from 0.55 percent on Monday.

Nexi, which had opened at the top, gave up 3.1 percent instead, after approving on Monday its consolidated financial results as of December 31, 2022, reporting revenues of EUR3.26 billion and up 7.1 percent from EUR1.61 billion in 2021. Net income amounted to EUR693.2 million up 15 percent from EUR602.4 million in 2021.

Also at the back of the pack was Telecom Italia, which fell 2.3 percent after two sessions ended higher.

Banca Mediolanum closed up 0.1 percent after reporting Tuesday that it recorded net inflows of EUR1.46 billion in February, bringing its total for the first two months of 2023 to EUR2.15 billion. Asset management net inflows are EUR526 million, bringing the total since the beginning of the year to EUR1.01 billion, while new loans disbursed in February amounted to EUR266 million, bringing the cumulative to EUR498 million. Protection policy premiums rise to EUR14 million in February from EUR13 million in January.

Good session also for Unipol, which took home a 0.9 percent gain to EUR5.1220 and closing for the third session in a row in the black.

On the Mid-Cap, Banca Monte dei Paschi gave up 3.3 percent, following up on the eve's red, albeit by 0.5 percent.

The board of directors of Ascopiave - down 3.7 percent - on Tuesday approved the draft financial statements for fiscal year 2022, which closed with a consolidated net result of EUR32.4 million, showing a reduction of EUR12.9 million compared to the previous year, thus a decrease of 28 percent, "mainly due to the decrease in the results of the investee EstEnergy," the company specified in the note released. The board proposed the distribution of a dividend of EUR0.13 per share.

Anima Holding--in the red by 1.4 percent--reported Monday that net inflows from assets under management in February 2023 were positive EUR383 million, with a negative asset management component of EUR90 million and one related to class I insurance proxies positive EUR373 million.

Among the positive notes was Saras, up 0.7 percent after falling 1.1 percent on the eve. The stock had previously come from four bearish sessions.

Cembre, on the other hand, rose 2.7 percent with price at EUR30.50, taking the lead and closing in the black for the third session in a row.

On the Small-Cap, SAES Getters gave up 4.1 percent after a 1.5 percent rise on the eve and B&C Speaker fell 3.9 percent instead.

TXT e-solutions - in the red by 0.3 percent - announced Monday that it had won Lot 2 of the open tender for the award of cloud application services and demand and pmo services for central public administrations.

Fiera Milano -- down 0.5 percent -- will enter the capital of Fiere di Parma through a reserved capital increase, the Milan-based company announced Tuesday. Fiere di Parma's shareholders' meeting will be called to approve a capital increase having as its object 576,587 ordinary shares, with a total value of EUR16.5 million, equal to about 19% of Fiere di Parma's share capital, reserved for subscription by Fiera Milano and to be released through the contribution in kind of the TuttoFood business unit.

At the top was Mondo TV, up 14 percent, in its third bullish session.

Among SMEs, GO internet rose 3.9 percent, after an eve's 3.4 percent setback.

ESI, on the other hand, closed down 11 percent. The company announced Monday that its board of directors has approved a capital increase for a total maximum amount of EUR3.5 million by issuing ordinary shares to be offered under option to shareholders.

The board of Health Italia -- down 3.2 percent -- on Monday reviewed consolidated revenues as of December 31, 2022, which came in at EUR42.5 million, up 4.8 percent from EUR40.5 million in the same period last year.

TMP Group, on the other hand, gave up 3.9 percent. The company said Monday that the board of directors reviewed the unaudited consolidated production value as of December 31, 2022, which came in at EUR6.5 million, up 14 percent from EUR5.7 million pro forma in 2021.

In Asia, the Nikkei closed Wednesday up 0.5 percent to 28,444.19, the Shanghai Composite fell 0.1 percent to 3,283.25 and the Hang Seng was down 2.2 percent to 20,087.61.

In New York, the Dow lost 1.7 percent yesterday to 32,856.46, the Nasdaq gave up 1.3 percent to 11,530.33 while the S&P 500 closed 1.5 percent in the red at 3,986.37.

Among currencies, the euro changed hands at USD1.0538 versus USD1.0579 at Tuesday's close. In contrast, the pound is worth USD1.1827 from USD1.1856 on Tuesday evening.

Among commodities, Brent crude is worth USD83.18 per barrel versus USD84.10 per barrel Tuesday night. Gold, meanwhile, trades at USD1,813.95 an ounce from USD1,820.67 an ounce at Tuesday's close.

On Wednesday's calendar, at 1000 CET comes Italian retail sales and, at 1100 CET, Eurozone Gross Domestic Product.

At 1300 CET, it will be the turn of the rate and mortgage applications from the US while, at 1415 CET, it will be the turn of the change in agricultural employment, followed, at 1430 CET, by the trade balance.

From 1600 CET onward, Federal Reserve Chairman Powell's congressional hearing will be held, while at 1600 CET there will be the interest rate decision by the Bank of Canada.

At 1630 CET the EIA and Cushing oil stocks.

Among companies, however, results from Banca Generali, Banca Monte dei Paschi di Siena, BFF Bank and Italmobiliare are expected.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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