(Alliance News) - Financial markets extended losses in afternoon trading on Tuesday, with trading rooms expressing caution on the eve of the release of the U.S. inflation report -- specifically the CPI -- that could influence the trajectory of the Federal Reserve's monetary policy.

Tuesday in the CME Group platform's FedWatch Tool, using futures also based on the actual federal funds rate or EFFR, the confirmation of the rate at the June 14 meeting has a 88 percent probability priced in for confirmation in the 500/525 bps range. In contrast, the 25 bps hike in the 525/550 bps target is priced at 12 percent.

Still on the subject of central banks, with the ECB seemingly on a trajectory for another rate hike after last week's, the Bank of England is expected to tighten its monetary policies further this week, with the UK also struggling with persistent inflation.

Thus, the FTSE Mib closed 0.2 percent in the red at 27,383.53, the Mid-Cap was down 0.6 percent at 43,337.78, the Small-Cap gave up 0.6 percent to 28,599.20, and Italy Growth gave up 0.1 percent to 9,133.13.

In Europe, Paris' CAC 40 closed down 0.7 percent, London's FTSE 100 in the red 0.3 percent, and Frankfurt's DAX 40 contracted 0.1 percent.

In Milan, on the main Piazza Affari list, on the highs was Banco BPM, which closed ahead 7.5 percent. The bank reported Monday that it closed the first quarter with a net profit of EUR265.3 million, up from EUR177.8 million in the same period of 2022 and EUR209.9 million in the fourth quarter of last year.

BPER Banca also rose well, taking home 3.9 percent, ending for the third session in a row on the bullish side.

On a negative note-despite excellent first quarter numbers-FinecoBank, which gave up 5.7 percent. The board of directors approved the results as of March 31, closing with net income setting a new record for the quarter at EUR147.3 million, 19% higher year-on-year and 17% higher than the previous quarter, the bank disclosed Tuesday.

Revenues for the first quarter of 2023 amounted to EUR293.7 million, up 15 percent from EUR255.7 million in the first quarter of 2022 and 11 percent from EUR263.9 million in the fourth quarter of 2022.

Banca Monte dei Paschi di Siena, on the other hand, gave up 2.2 percent, following the announcement of results as of March 31, in which revenues of EUR878.9 million, up 12 percent from EUR786.2 million in the first quarter of the previous year, is in the red by 0.3 percent. Net income is EUR236 million, up 51 percent from EUR156 million in the same period last year.

A2A is in the red by 0.1 percent. The company announced Monday that it has requested an extension from Egea of the previously agreed exclusivity period expiring on May 15, 2023, in order to continue due diligence activities. Egea, a statement said, confirmed to A2A that it agrees to the continuation of due diligence activities and negotiations until June 12, but on the condition that A2A waives the exclusivity with regard to the ongoing negotiations before the May 15, 2023 deadline. Due diligence will then continue in the context of a competitive process, in which other parties may participate.

On the Mid-Cap, PharmaNutra rises 5.9 percent after Monday's approval of its interim report as of March 31, which closed with net income for the period amounting to EUR5.4 million compared to EUR3.5 million as of March 31, 2022. Consolidated net revenues as of March 31, 2023 amounted to EUR23.6 million, up EUR4.8 million from the same period last year.

Also among the best was Banca Popolare di Sondrio, boosted by good accounts released Tuesday, which closed up 2.2 percent. Consolidated net income as of March 31, 2023, was EUR94.4 million compared to EUR40.3 million in the same period last year.

Anima Holding, in the red by 1.1 percent, reported Friday that it closed the first quarter with net income essentially unchanged year-on-year, at EUR30.2 million from EUR30.3 million in the same period a year earlier.

SOL, on the other hand, gave up 4.7 percent on the eve of the release of its quarterly report.

On the Small-Cap, Ratti advances 5.7 percent bringing the price to EUR2.99 per share and closing for the fourth session in a row in a bullish trend.

Gas Plus also did well, taking home 2.9 percent after a 0.6 percent decline on the eve.

Valsoia, which gave up 0.2 percent, reported Monday that first-quarter revenues rose 9.5 percent year-on-year to EUR24.5 million from EUR22.4 million in the same period a year earlier.

Esprinet, on the other hand, gave up 3.3 percent to EUR7.69, pending its quarterly report due for release on Thursday.

Among SMEs, H-Farm gave up 7.5 percent, after two sessions closed with a positive balance.

Go Internet, on the other hand, gave up 4.8 percent to EUR0.10. The stock touched its new one-year low at EUR0.098 during the day.

Spindox rises 8.5 percent. The company announced Tuesday that it has been awarded a tender by Poste Italiane to establish a framework agreement for the provision of specialized support services for territorial transformation. The contract, which will run for 36 months, has an economic value of EUR2.2 million.

In contrast, Alfio Bardolla rises 5.5 percent, in his third session on the bullish side.

In New York, the Dow Jones gives up 0.1 percent, the Nasdaq contracts 0.5 percent, and the S&P 500 is marking a 0.4 percent loss.

Among currencies, the euro changes hands at USD1.0951 against USD1.1017 at Monday's close. In contrast, the pound is worth USD1.2612 from USD1.2631 on Monday evening.

Among commodities, Brent crude is worth USD75.42 per barrel versus USD76.83 per barrel on Monday evening. Gold, on the other hand, trades at USD2,024.83 an ounce from USD2,027.15 an ounce at Monday's close.

On Wednesday's macroeconomic calendar, Germany's inflation is due at 0800 CEST while at 1000 CEST it will be the vote on Italian industrial production.

From the US, at 1300 CEST, space is given to the US mortgage market report while at 1430 CEST it will be the turn of the inflation figure. At 1630 CEST, eyes on the crude oil stocks data and the Cushing inventory. At 1900 CEST, on the other hand, a 10-year Treasury bond sta is scheduled.

On the corporate calendar, among the many upcoming quarterly reports are those of Aeffe, Arnoldo Mondadori Editore, Hera, Il Sole 24 Ore, Immsi, Nexi, Piovan, Telecom Italia, Tinexta, and Tod's.

By Maurizio Carta, Alliance News reporter

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