(Alliance News) - Milan, like the other Old Continent's stock markets and with only London at parity, is moving with a bullish trend Tuesday as traders see on the horizon the growing possibility of interest rate cuts by major central banks.
Trading rooms await important inflation data from major European and U.S. economies later this week, looking for indications of future monetary policies from the European Central Bank and the Federal Reserve.
From the Eurotower, among the most recent were dovish comments from a historic European Central Bank "hawk" that have raised hopes that the bloc's central bank may soon begin cutting rates. In fact, Bundesbank President Joachim Nagel said Friday that the ECB might consider rate cuts before the summer break as inflation continues to fall toward its 2 percent target.
Nagel's opinion aligns with the growing chorus of officials advocating a potential cut in June. Currently, markets expect a rate cut of 89 basis points this year, amounting to at least three, possibly four, 25 basis point maneuvers.
Nagel cautioned that an initial rate cut does not necessarily imply subsequent adjustments, emphasizing the ECB's data-driven approach to decision-making.
Thus, the FTSE Mib, is marking green by 0.3 percent to 34,747.78, the Mid-Cap is rising 0.4 percent to 48,060.59, the Small-Cap is advancing 0.2 percent to 28,144.03, and Italy Growth is in the red by 0.4 percent to 8,097.75.
In Europe, London's FTSE 100 moves in parity, while Paris' CAC 40 advances 0.1 percent and Frankfurt's DAX 40 advances 0.5 percent.
On the Mib, boost on Saipem, which moves ahead 4.3 percent to EUR2.24, on the heels of the eve's green closed with a plus 6.1 percent.
Confirming the good form seen since the start is the banking sector, with BPER Banca stretching 3.0% with new price at EUR4.45 per share, thus updating its 52-week high.
Boost also on Banca Monte dei Paschi, which marks a plus 0.8% at EUR4.24 per share. The stock since the start of 2024 is marking a gain of more than 39 percent.
Iveco Group moves ahead 1.2% to EUR14.11 and updating the high on the yearly frame after having caressed EUR14.18.
Enel travels in the green by 1.2% to EUR6.14. Morgan Stanley raised Enel's target price to EUR7.50 from EUR7.00.
DiaSorin - trailing - gives up 0.8 percent, however, following up on the previous four sessions that closed with a bearish candle.
Stellantis, on the other hand, is giving up 1.0%, reversing course after seven bullish sessions.
On the cadet segment, ENAV is advancing 1.6 percent, aiming for its fourth session in a row to close with a positive balance.
The board of directors of Rai Way -- in the money with 3.7 percent -- reviewed the draft individual financial statements for the year ending Dec. 31, 2023, which closed with a net profit of EUR86.7 million, up nearly 18 percent from fiscal year 2022, when it was EUR73.7 million. The board proposed the distribution of a dividend of EUR0.32 per share, up from EUR0.27 in the previous year.
Good buys also on Technogym after the accounts presented on the eve of the meeting. The company reported Monday that it ended 2023 with adjusted net income of EUR78.4 million, up 18 percent from EUR66.1 as of Dec. 31, 2022. The company announced that it has proposed to pay a dividend of EUR0.26 per share, up from EUR0.25 per share in 2022.
At the tail end, GVS is giving up 1.9 percent, after a 1.9 percent profit on the eve.
Leading the way, however, is Mutuionline, which is posting minus 2.0%, on the heels of the eve's negative close of minus 1.1%.
On the Small-Cap, Class Editori advances more than 10% to EUR0.1150, updating its 52-week high.
The board of Mondo TV - up nearly 11 percent - on Monday evening approved the Mondo TV group's draft annual financial statements and consolidated annual financial report as of December 31, 2023, closing with a net profit of EUR800,000 compared to a loss of EUR69.3 million in the previous year.
Strength also on Beghelli, which leads the price up 4.9 percent after the previous session's 1.4 percent red.
In the rear Restart is giving up 4.1 percent. The stock--which has been missing the ex-dividend since 2007--reverses course after two sessions closed with bullish candles.
Among the SMBs, Caribbean Company pushes ahead more than 10% to EUR0.72, rebounding after two sessions of declines.
Grifal, on the other hand, marks plus 11 percent, benefiting from good accounts. The company reported Monday that it ended 2023 with a net profit of EUR887,217 compared to the 2022 figure of EUR432,047.
Allcore -- down 7.1 percent -- announced Monday that it had approved results for 2023, a fiscal year that ended with a profit of EUR1.5 million, down from EUR2.6 million a year earlier. The board also proposed a dividend of EUR0.06 per share, for a total of EUR1.0 million, down from EUR0.1 per share in the previous year.
CrowdFundMe -- flat at EUR2.06 -- reported Monday that it ended 2023 with a loss of EUR941,384, which compares with a loss of EUR399,297 in the previous year. That result was affected by EUR680,000 in depreciation and amortization and an increase in expenses in technological innovations, the company explained in a note.
In New York overnight Europe, the Dow gave up 0.4 percent, while the Nasdaq contracted 0.3 percent as did the S&P 500.
Among currencies, the euro changed hands at USD1.0856 against USD1.0834 recorded in Monday's European stock close, while the pound is worth USD1.2657 from USD1.2640 last night.
Brent crude is worth USD86.69 per barrel versus USD86.84 per barrel at Monday's close. Gold, meanwhile, trades at USD2,197.46 an ounce from USD2,176.22 an ounce last night.
Tuesday afternoon's calendar from the U.S. features goods orders, at 1330 CET, and house prices, due at 1400 CET. The Michigan consumer confidence report will be released at 1500 CET while weekly crude oil stocks will close the day at 2130 CET, following a five-year T-Note auction.
By Maurizio Carta, Alliance News reporter
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