(Alliance News) - European stock indexes on Tuesday extended their losses of the eve, with the persistent "higher for longer" on interest rates echoed throughout financial markets.

Also on Monday evening, rating agency Moody's warned that a U.S. government shutdown this weekend amid political gridlock in Congress would have negative implications for the country's credit rating.

The warning from Moody's--the only major agency to maintain U.S. sovereign debt ratings at the highest levels--underscores the potential economic danger to the United States should an agreement to keep the government funded not be reached before the end of the month. A shutdown "would underscore the weakness of U.S. institutional and governance strength relative to other AAA-rated sovereign bonds," Moody's wrote.

"In addition, a prolonged shutdown would be disruptive to the U.S. economy and financial markets, with potential negative consequences for sovereign debt sustainability," the U.S. rating agency added.

Thus, the FTSE Mib is trading 1.1 percent red at 28,078.53.

In Europe, London's FTSE 100 is giving up 0.1 percent, Paris's CAC 40 is retreating 1.1 percent, and Frankfurt's DAX 40 is down 0.7 percent.

Among the smaller lists, the Mid-Cap is giving up 1.0 percent to 39,134.43, the Small-Cap is in the red 0.7 percent to 25,600.42, and Italy Growth is in the red with 0.4 percent to 8,413.67.

On the main list in Piazza Affari, a good start for Banca Generali, which is up 0.5 percent to EUR33.64 after three bearish sessions.

UniCredit -- down 1.4 percent -- announced Tuesday that it bought back 4.3 million of its own shares between Sept. 18 and 22. The shares were taken over at an average price of EUR22.6367 for a total value of EUR98.2 million.

Morgan Stanley cut Moncler's target price to EUR64.00 from the previous EUR69.00. The stock opened trading down 2.7 percent.

Nexi also cut its target price, with Goldman Sachs raising it to EUR9.00 from the previous EUR10.00. The shares currently mark minus 2.7 percent.

In the cadet list, among the few bullish performers is MFE, with class B shares moving ahead 0.3% to EUR0.59 rearing their heads after three bearish sessions.

Piaggio & C. - down 1.8 percent - signaled Tuesday that ratings agency Standard & Poor's Global Ratings had revised its outlook on the Piaggio group, raising it to "positive" from "stable."

Fincantieri - down 0.8 percent - signed a EUR800 million medium-long term loan on Monday, with a five-year term of which three years are pre-amortization, 70 percent backed by a SACE guarantee.

Webuild - down 1.9 percent - informed on Tuesday that it had purchased - in the week of Sept. 18-22 - 275,000 of its own ordinary shares, as per its business plan. The countervalue was about EUR474,000.

Alerion Clean Power - down 0.4 percent - informed that it purchased 4,250 of its own shares for a total consideration of EUR116,000 approximately.

On the Small-Cap, Somec is marking minus 4.6 percent at EUR29.30 per share after two sessions closed in the green.

Eurotech, on the other hand, is giving up 2.7 percent to EUR2.33 per share, continuing the downward trend of recent sessions.

PLC System Srl, a subsidiary of PLC, on Monday finalized the sale of its entire stake in Idroelettrica 2014 Srl Unipersonale -- owner of a hydroelectric power plant located in Località Brotano in the municipality of Pergola and San Lorenzo in Campo in the province of Pesaro-Urbino -- to an operator already present in the market for hydroelectric power plants. The consideration for the sale of Hydro 2014, net of the costs of its restoration, is EUR400,000.00. The stock is marking a green of 0.7 percent.

Among SMEs, Agatos trades well, which goes into the volatility auction over 18% with new price at EUR0.2160.

Sia--which still does not trade--reported Tuesday that the board of directors approved the half-year report as of June 30 reporting a profit of EUR241,000 up 77% from a net profit of EUR136,000 recorded in the first half of 2022. In addition, the backlog as of June 30 was EUR36.9 million, up 36 percent from EUR27.1 million in the same period last year.

In New York overnight Europe, the Dow rallied 0.1 percent, the Nasdaq closed in the green by 0.5 percent, and the S&P 500 closed in the green by 0.4 percent.

Among Asian exchanges, the Hang Seng is giving up 1.5 percent, the Shanghai Composite lost 0.4 percent, while the Nikkei posted minus 1.1 percent.

Among currencies, the euro changed hands at USD1.0586 versus USD1.0666 in Friday's European equities close while the pound is instead worth USD1.2209 from USD1.2279 on Friday evening.

Among commodities, Brent crude is worth USD92.55 per barrel versus USD92.88 per barrel at Monday's close. Gold, meanwhile, trades at USD1,913.28 an ounce from USD1,918.19 an ounce on Monday evening.

Tuesday's calendar from the US at 1400 CEST features building permits issued, while at 1600 CEST it will be the turn of the new home sales data. At 1900 CEST, FOMC member Bowman is scheduled to speak, while at 2230 CEST comes weekly oil inventories.

On the corporate calendar, ABP Nocivelli Company of the Caribbean, Danieli & C, Doxee, ErreDue, eVISO, Frendy Energy and Gambero Rosso and iVision Tech are among the many half-year results coming in.

By Maurizio Carta, Alliance News reporter

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