(Alliance News) - On Tuesday, European equity markets traded in a bullish trend, with the Mib lining up by taking the point bar above 27,700, partly thanks to good intermediate corporate reports that are increasingly making their way onto the day's calendars.
On the macro front, there were several indications provided to the trading rooms. Eurozone inflation slowed to 2.9 percent, the lowest level since July 2021 and below expectations of 3.1 percent, a preliminary estimate provided by Eurostat on Tuesday showed.
Meanwhile, the core rate, which filters out volatile food and energy prices, also fell to 4.2 percent in October, marking its lowest point since July 2022. GDP, on the other hand, unexpectedly contracted by 0.1 percent on a three-month basis.
Among households, however, inflation in Italy slowed more than expected to 1.8 percent after 5.3 percent in September, while the economy stalled. The substantial deceleration in the inflation rate is mainly due to the sharp trend-based slowdown in both unregulated and regulated energy prices, and to a lesser extent the decline in unprocessed and processed food. These effects are only partly offset by the acceleration in prices of housing-related services and transportation-related services. On a monthly basis, consumer prices fell 0.1 percent after rising 0.2 percent the previous month.
However, caution also reigns ahead of monetary policy decisions by the U.S. Federal Reserve and the Bank of England this week, which are expected to confirm current interest rates.
The BoJ has taken one of the final steps to end its seven-year policy of restraining long-term interest rates, setting the stage for larger changes while sharply raising its inflation outlook.
The board made a near-unanimous decision Tuesday to allow 10-year Japanese government bond yields to rise above 1 percent, revising its so-called yield curve control policy for the second time in three months. The bank said the 1 percent ceiling on 10-year yields will be considered "a benchmark," stressing that a strict limit on long-term interest rates could lead to "large side effects." The BoJ had previously said it would offer to buy 10-year bonds at 1 percent in fixed-rate operations, after raising the cap from 0.5 percent in July.
Core inflation-which excludes energy products and fresh food-slowed to 4.2 percent in October from 4.6 percent in September on a year-over-year basis.
The FTSE Mib, therefore, marks a 1.5 percent rise to 27,749.13.
London's FTSE 100 advances 0.6 percent, Paris' CAC 40 advances 1.0 percent, and Frankfurt's DAX 40 advances 0.5 percent.
Among the smaller lists, the Mid-Cap advances 1.2 percent to 38,303.14, the Small-Cap picks up 0.8 percent to 24,259.57, and Italy Growth is in the green 0.2 percent to 7,607.54.
On the main list of Piazza Affari, good session for Prysmian, which is up 3.4 percent. On Monday it announced that it had signed an agreement worth about EUR900 million with Clean Path New York to supply submarine and terrestrial cable systems for one of the largest transmission infrastructure projects in the US.
Under the agreement, Prysmian Group will be responsible for the design, fabrication, installation, and testing of a 400-kV single-core high-voltage direct current (HVDC) cable system with XLPE insulation, subject to Clean Path New York issuing its notice to proceed in spring 2024.
It does even better for BPER Bank, which advances 3.6 percent to EUR3.06 per share, positioning its snout toward its third session to end on the bullish side.
Amplifon, meanwhile, advances 3.3 percent, with new price at EUR26.21 despite a price cut by Barclays and JP Morgan. The board Monday approved financial data as of Sept. 30, a period that ended with net income on a recurring basis of EUR112.8 million, down 5.7 percent from EUR119.6 million recorded in the first nine months of 2022, " due to lower operating leverage, higher depreciation and amortization and increased financial expenses," the company note said.
Banco BPM is also doing well, rising 2.2 percent to recover to 4.82 per share, on the heels of its 0.9 percent gain on the eve of the meeting.
On a negative note, Leonardo is giving up 0.5%, after a 2.4% gain in the previous session.
Tenaris, on the other hand, is marking a negative balance of 0.2% after eve's green with 1.0%.
On the MidCap, Goldman Sachs raised Technogym's tp to EUR9.50 from EUR9.20. The stock, which rises 2.7%, is priced at EUR7.26 per share heading into its third bullish session.
Good trades also on Ascopiave, which advances 3.2% after eve's bearish candle with 0.5%.
Tamburi Investment Partners -- up 1.0 percent -- on Monday reported that it bought back 72,349 of its own ordinary shares during the period Oct. 23 to Oct. 27 for a total value of about EUR568,000.
Among the bearish, narrow group on the list, Lottomatica is giving up 0.6 percent after 1.2 percent green on eve. The board Tuesday approved its condensed interim consolidated financial statements for the first nine months ended Sept. 30. Revenues were EUR1.19 billion in the first nine months of 2023, compared to EUR1.06 billion in the same period of 2022 pro forma, an increase of 12 percent pro forma.
On the SmallCap, good trades for Mondo TV, which trades plus 8.6 percent rearing its head after four bearish sessions.
Seri Industrial, on the other hand, advances 4.6 percent, with new price at EUR2.75 per share and on the heels of eve's 2.7 percent gain.
Borgosesia, on the other hand, marks a plus 5.1%, after two bearish sessions in which it lost an aggregate of about 8% on the parterre.
At the tail end, Giglio Group is instead giving up 7.5 percent, with new price at EUR0.4650. The stock in 2023 marks a decline of more than 58 percent.
Among SMEs, Aton Green Storage is advancing with 7.9% to EUR5.3, in the aftermath of a loss of with 2.2%.
Comal, on the other hand, advances 4.1%, following up Monday's profit with 1.6%.
Health Italia, on the other hand, marks a plus 0.4 percent after two down sessions.
G Rent, on the other hand, drops 6.2%, subject to profit taking after four sessions closes with a bullish candle.
In New York overnight euroea, the Dow advanced 1.6 percent, while the S&P closed up 1.2 percent as did the Nasdaq.
Among currencies, the euro changed hands at USD1.0662 versus USD1.0608 recorded at Monday's European stock close, while the pound was worth USD1.2195 from USD1.2146 on Monday.
Among commodities, Brent crude is worth USD86.73 per barrel from USD88.30 per barrel at Monday's close. Gold, meanwhile, trades at USD1,998.95 an ounce from USD2,000.50 an ounce on Monday evening.
Tuesday's economic calendar includes, from the US, at 1400 CET, focus on the house price index and at 2130 CET on weekly oil stocks.
By Maurizio Carta, Alliance News reporter
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