Mib up; Knot does not guarantee on monetary tightening

(Alliance News) - European stock markets, with Milan matching the common sentiment, closed higher on Tuesday, supported by a series of U.S. corporate reports and awaiting inflation data from both the U.K. and Eurozone, which are due on Wednesday.

In addition, comments by ECB members Nagel and Knot raised doubts about the implementation of an interest rate hike in September.

Klaas Knot specifically-a member of the European Central Bank's Governing Council-said that monetary tightening after next week's meeting is far from guaranteed, suggesting that Eurotower officials may soon suspend their campaign of interest rate hikes. "For July I think it is a necessity, for anything beyond July it would be at most a possibility but not a certainty," the head of the Dutch central bank, traditionally categorized among the "hawks," told Bloomberg TV.

"From July onward I think we have to watch carefully what the data tell us about the distribution of risks around our base case."

The comments signal that market and analyst expectations for two more quarter-point increases in the deposit rate, to 4 percent, may thus be overstated.

The FTSE Mib closed up 0.3 percent to 28,706.76, the Mid-Cap up 0.2 percent to 42,298.40, the Small-Cap is in the green 0.5 percent to 26,670.28, and Italy Growth is up 0.3 percent to 9,077.28.

In Europe, London's FTSE 100 finished up 0.6 percent, Paris' CAC 40 up 0.4 percent, as did Frankfurt's DAX 40.

On the main list in Piazza Affari, Banca Mediolanum advanced, posting a plus 2.2 percent to EUR8.54 per share on the heels of eve's green with 0.3 percent.

Leonardo, on the other hand, advanced 2.2 percent on the heels of the previous session's 2.5 percent.

Terna, on the other hand, closed up 0.2%. The company launched a EUR650 million green bond issue. The bond is part of the soceity's EUR9.00 billion Euro Medium Term Notes program, rated 'BBB+' by S&P and '(P)Baa2' by Moody's. It has a term of 10 years, maturing in July 2033, with a coupon of 3.875% and an issue price of 99.1%, with a spread of 90 basis points over midswap. Terna expects that the net proceeds of the issue will be used to finance the company's "eligible green projects," identified or to be identified based on Terna's green bond framework.

On a negative note, Moncler instead retreated 1.4 percent, with new price at EUR63.08, for the third session on the bearish side.

Amplifon closed down 0.3 percent. The Milan-based company on Tuesday reported that the European Investment Bank has granted a EUR300 million loan to further accelerate the innovation and digitalization path of the world's leading hearing services and solutions company.

On the Mid-Cap, Seco gave up 1.8 percent after a 3.4 percent gain in the previous session.

LU-VE, on the other hand, closed down 2.5 percent after two sessions closed among the bullish.

Sesa - in the red by 1.8 percent - reported Tuesday that it had reported revenues of EUR2.90 billion as of April 30 from EUR2.38 billion in the same period a year earlier and up 21 percent.

Brunello Cucinelli, on the other hand, left 0.7 percent on the parterre, bringing to four the number of sessions closed negative.

Among the bullish performers, Ascopiave marks a plus 2.7% at EUR2.3250, after contracting with 1.5% on the eve.

Also doing well was Eurogroup Laminations, which advanced with 0.8%. Of note, earlier in the week, JPMorgan Asset Management initiated a short position on the stock at 0.5%.

On the Small-Cap, Neodecortech closed advancing double digits over 10%. There was high trading volume on the stock, which exceeded 252,000 pieces changed hands compared to a three-month daily average of about 6,800.

Pierrel, on the other hand, brought home a positive balance of 6.1 percent, in its fourth session on the bullish side.

Mondo TV, on the other hand, moved ahead 6.5 percent to EUR0.4440, after a 0.7 percent loss on the eve of the session.

Among the bearish side, the rear-enders included Itway, which closed down 0.9 percent and marked its third bearish session

Among the SMEs listed in Piazza Affari, DHH advanced 3.2 percent after two bearish sessions.

Bellini Nautica, on the other hand, closed ahead 4.7 percent, repeating eve's green with 4.7 percent.

Arterra gave up 4.3% to EUR2.22 per share, in its third bearish session. Of note, the company reported Monday that it closed the first half of the year with revenues of EUR1.6 million, down 25 percent from EUR2.1 million in the same period last year.

In the red, Datrix gave up 3.3 percent, on whose stock volume was more than 29,000 compared with the three-month daily average of about 11,200.

In New York, the Dow Jones is giving up 1.0 percent, the Nasdaq is up 0.1 percent, and the S&P 500 is advancing with 0.4 percent.

Among currencies, the euro is changing hands at USD1.1225 against USD1.1236 in Monday's European stock close while the pound is instead worth USD1.3064 from USD1.3082 last night.

Among commodities, in a bearish trend, Brent crude is worth USD79.28 per barrel versus USD78.90 per barrel at Monday's close. Gold, meanwhile, trades at USD1,980.81 an ounce from USD1,954.17 an ounce on Monday evening.

On Wednesday's macroeconomic calendar, at 0800 CEST from the UK comes inflation, retail prices and car registrations, which will also come from Italy, France and Germany. At 1100 CEST, it is the turn of the consumer price index from the Eurozone.

At 1300 CEST, the mortgage market report is released from the US, while at 1430 CEST it will be the turn of building permits. At 1630 CEST, the EIA data on refineries and the Cushing inventory is released. At 1900 CEST, a 20-year Treasury bond auction is scheduled instead.

Among Italian companies, Energy and Talea Group results are expected.

By Maurizio Carta, Alliance News senior reporter

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