(Alliance News) - European stock markets appeared little moved Tuesday, with cautious investor sentiment prevailing ahead of this week's U.S. Federal Reserve and European Central Bank meetings, which are likely to announce rate hikes. However, traders have responded positively to China's pledge to strengthen its economy through increased government support.

The U.S. Federal Reserve will begin its two-day policy meeting later today and announce its interest rate decision by tomorrow evening. It is widely expected that the central bank will raise interest rates by 25 basis points.

"But what Fed officials will do is remind investors that the tightening cycle is probably not over and that there will probably be another rate hike on the U.S. horizon. So yes, there is a big chance that the Fed will spoil your mood if you are among those who think that this week's rate hike will be the last of this tightening cycle in the United States," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

The FTSE Mib, therefore, moves just below par at 28,899.49.

In Europe, London's FTSE 100 is up 0.2 percent, Paris' CAC 40 is at a perfect parity, and Frankfurt's DAX 40 is in the slight red.

Among the smaller lists, the Mid-Cap marks a 0.2 percent decline to 42,266.59, the Small-Cap is just above par at 26,808.81, and Italy Growth is in the green 0.3 percent to 9,109.58.

On the main list of Piazza Affari, Campari is off to a good start, appreciating 0.7 percent on the eve of its half-year results.

The board of Poste Italiane -- leading the list with an asset of 2.1 percent -- announced Tuesday that it had approved financial results for the first half of 2023, which closed with a net profit of EUR1.14 billion, compared with EUR985 million in the same period last year. Revenues were EUR6.05 billion compared to EUR5.58 billion in the first half of last year.

Barclays raised its target price on Telecom Italia to EUR0.25 from EUR0.22. The stock is stepping back 0.2 percent.

Inwit--down 0.3 percent--reported Monday that between July 17 and July 21 it bought ordinary shares worth a total of EUR4.0 million.

On the MidCap, Tod's advances well, taking 1.3 percent of assets bringing the price to EUR42.00.

Webuild - in the green by 0.5 percent - on Monday reported having purchased 257,204 of its own ordinary shares in the week of July 17-21. The average price was EUR1.7946 per share, for a total value of EUR461,569.68.

CIR--flat at EUR0.4080--reported Monday that it had purchased its own ordinary shares between July 17 and 21 for a total value of EUR237,000 or so.

Carel Industries closed the list, marking a minus 5.8 percent in the EUR24.40 area. The company on Monday evening signed a binding agreement to acquire an 82.4 percent stake in Kiona Holding AS, a Norwegian prop-tech company.

Backwardation also for Ariston Holding, which gives up 0.8 percent after eve's timid gain of 0.2 percent.

On the SmallCap, Conafi sprints ahead 5.7%, tacking up after two bearish sessions.

Autostrade Meridionali - up 0.4 percent - reported Monday that it posted a loss of EUR852,000 in the first half of the year, which compares with a profit of EUR15.9 million for the same period in 2022.

d'Amico International Shipping - in the red by 0.8 percent - announced Monday that it had purchased 127,000 of its own ordinary shares between July 17 and 21 for a total value of EUR437,000 or so.

Gabetti, on the other hand, gives up 3.7 percent, after a 0.6 percent gain on Monday evening.

Among SMEs, DHH sprints, bullish with 6.5% to EUR16.50 taking the lead.

Pharmacosmo, on the other hand, advances with 4.4%, aiming for a third session to close on the bullish side.

Grifal's board of directors - down 3.9 percent - reviewed consolidated pre-consolidated revenues for the first half of 2023, which show 4.5 percent growth over the same period in 2022 to EUR19.4 million.

In New York last night, the Dow Jones closed up 0.5 percent, the Nasdaq advanced 0.2 percent, and the S&P 500 posted a green of 0.4 percent.

Among Asian exchanges, the Hang Seng is up 4.1 percent, the Shanghai Composite is up 2.1 percent, while the Nikkei is stepping back 0.1 percent.

Among currencies, the euro changes hands at USD1.1082 against USD1.1075 on Monday's European equities close while the pound is instead worth USD1.2859 from USD1.2821 on Monday evening.

Among commodities, Brent crude is worth USD82.59 per barrel versus USD82.38 per barrel at Monday's close. Gold, meanwhile, trades at USD1,961.11 an ounce from USD1,959.55 an ounce on Monday evening.

On Tuesday's macroeconomic calendar, July business expectations and the ifo index of German business confidence are due from Germany at 1000 CEST, along with an assessment of the current German situation.

Also at 1000 CEST, the ECB bank lending survey is scheduled while at 1200 CEST, the 15-year gilt auction will be held.

At 1430 CEST, manufacturing sales are expected from Canada while at 1500, the Housing Price Index and the S&P/CS HPI Composite Index will come out from the US.

An hour later, the consumer confidence report will arrive and at 2230 CEST, the weekly oil stocks.

In Piazza Affari, the half-year results of Acea, Edison, Franchi Umberto Marmi and UniCredit are expected.

By Maurizio Carta, Alliance News senior reporter

Comments and questions to redazione@alliancenews.com

Copyright 2023 Alliance News IS Italian Service Ltd. All rights reserved.