(Alliance News) - On Tuesday, major European stock markets are expected to rise after two days of losses caused by uncertainty over the banking sector due to the collapse of the U.S.-based Silicon Valley Bank.

"Now, in theory, the worst of the crisis should be behind us, as the U.S. government has guaranteed all depositors of the failed banks last week. But the crisis will definitely make the Fed think twice about what to do at next week's meeting," comments Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

For now, the price of Fed funds futures suggests that there is just over a 70 percent chance of a 25 basis point increase next month and just under a 30 percent chance of no rate hike.

"There is now a massive lack of consensus in the market about what the Fed should do and what the Fed will do. Some people think that if today's inflation data are not weak enough, the Fed should continue to hike 50 basis points. Some others think the Fed should simply raise another 25 basis points this month and signal a pause starting at the next meeting, which would be the smoothest solution of all for the market."

"A growing number of investors and banking analysts, including Goldman Sachs, believe the Fed will skip the March rate hike. Others further extend the 'no rate' idea and think that we will finally get the pause in U.S. rate increases that many hoped for as early as this month, meaning that rate increases will be over for this cycle for the United States. And there are some extreme views, such as Nomura, who think the Fed may cut 25 bp at next week's meeting to contain the crisis in the banking sector," the analyst concluded.

Thus, the FTSE Mib is given up 65.0 points or 0.3 percent after closing down 4.0 percent at 26,183.54 with day's low at 25,994.81.

In Europe, Paris' CAC 40 is expected to open up 19.0 points or 0.3%, London's FTSE 100 is expected up 0.7 points Frankfurt's DAX 40 is given up 29.0 points or 0.2%.

Among the smaller listings, the Mid-Cap closed down 3.4 percent last night at 42,266.05, the Small-Cap gave up 1.6 percent to 29,686.98, and Italy Growth finished 1.8 percent in the red at 9,268.68.

On the Mib, among the few bullish performers was Italgas, in the green by 1.1 percent to EUR5.2950, on the heels of Friday's 1.6 percent gain.

Leonardo closed in the green by 0.1 percent at EUR11.03. Kepler Chevreux raised its target price on the stock to EUR13.00 from EUR11.60.

Bankers ended at the bottom with BPER Banca in the red by 9.5 percent, Banco BPM down 8.1 percent and Intesa Sanpaolo down 6.1 percent. FinecoBank is also down 6.3%. UniCredit gave up 9.0%, while Mediobanca lost 4.9% instead.

Poste Italiane--which is back 4.0%--announced Friday a strategic partnership with Deutsche Post DHL Group for the Italian and international parcel market.

Significant selling also on Saipem, which contracted 7.3% pending results due Tuesday.

On the Mid-Cap, major declines, also in this segment, for bankers. Banca Popolare di Sondrio gave up more than 10 percent, Banca Monte dei Paschi di Siena closed 7.3 percent in the red, while Credito Emiliano finished down 7.5 percent. On Friday it announced that it and Credemholding had signed the new EUR5 billion EMTN program.

De' Longhi--down 3.0%--reported Monday that it ended 2022 with a net profit nearly halved from the previous year, to EUR177.4 million from EUR311.1 million. Revenues fell 2.0 percent year-on-year to EUR3.16 billion from EUR3.22 billion, with the net industrial margin falling to EUR1.49 billion from EUR1.60 billion.

Datalogic's consolidated revenues - in the red by more than 10 percent - rose 9.5 percent in 2022, the company disclosed Thursday, hitting EUR654.6 million compared to EUR597.8 million realized as of Dec. 31, 2021; at constant exchange rates, revenues are up 4.4 percent.

Good session, among the few, for Cembre, which advanced 2.1 percent after the 2.3 percent red with which it closed the previous session.

On the Small, LVenture Group closed in the green by 6.6 percent after announcing, together with Digital Magics--in the green by 0.3 percent on Italy Growth--that it has mandated LVG CEO Luigi Capello and DM executive chairman Marco Gay to sign a non-binding term-sheet dealing with the integration of the two companies, which is expected to be achieved through a merger by incorporation of DM into LVG.

Also doing well was Ratti, which, after ending the previous two sessions in the red, rallied 3.4 percent.

At the bottom, Trevi Finanziaria Industriale gave up 6.5 percent after Friday night's timid 0.3 percent gain.

Tesmec, on the other hand, left 7.7 percent on the parterre, with price at EUR0.1634 after the previous session's timid 0.1 percent gain.

Among PMIs, Energy gave up 8.7%, ending for the third session in a row on the bearish side.

Cyberoo gave up 6.4 percent, following up Friday's red with 2.9 percent.

Masi Agricola gives up 1.4 percent after reporting Friday that it saw double-digit growth in 2022 revenues but that net income fell year-over-year, leading the board to reduce the dividend from the one it paid last year. The company's net income dropped to EUR4.5 million in 2022 from EUR5.4 million in 2021, and the board proposed to shareholders to distribute a dividend of EUR0.06 per share compared to EUR0.08 per share in the previous year.

Technoprobe gave up 2.7 percent after reporting, with reference to the events surrounding Silicon Valley Bank Financial Group, that its exposure to SVB Financial Group represents about 2.5 percent of the company's cash and cash equivalents as of Dec. 31, 2022. Technoprobe has no other current accounts or lines of credit with SVB Financial Group and therefore considers the exposure immaterial.

Sciuker Frames--in the red by 2.5 percent--reported that it has entered into a partnership with Deutsche Bank Easy that allows it to replace invoice discounting with no impact on customers. Under a new Decree-Law, customers are not allowed to request the invoice discount as a payment method for 50 percent of the invoice; therefore, for all new orders, the customer would be left with the only option of paying the entire invoice and then using the related credit generated over 10 years, deducting it from their annual fee amount paid.

Among Asian exchanges, the Nikkei closed down 2.2 percent, the Shanghai Composite down 0.7 percent while the Hang Seng was down 2.2 percent.

In New York on European night, the Dow closed down 0.3 percent, the Nasdaq up 0.5 percent while the S&P 500 contracted 0.2 percent.

Among currencies, the euro changed hands at USD1.06989 versus USD1.073 at Monday's close. In contrast, the pound is worth USD1.2174 from USD1.2155 on Monday evening.

Among commodities, Brent crude is worth USD80.05 per barrel versus USD81.06 per barrel on Monday evening. Gold, on the other hand, trades at USD1,910.54 an ounce from USD1,906.38 an ounce at Monday's close.

On Tuesday's economic calendar, at 1000 CET it is the turn of Italian industrial production, and, also from Italy, at 1110 CET is the auction of BTPs with three- and seven-year maturities.

At 1330 CET from the US comes the CPI, at 2130 CET weekly oil stocks, and, at 2220 CET, FOMC member Bowman's speech.

In the rich corporate calendar, coming up, among many, are the results of Biesse, Cembre, Culti, MARR, Orsero, Saipem, Sanlorenzo, Servizi Italia, and Unidata.

By Chiara Bruschi, Alliance News reporter

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