(Alliance News) - Europe's major stock markets open higher meeting forecasts Tuesday as markets take a breather after Monday morning's upbeat start as they await the Fed's decisions on its benchmark rates to be announced tomorrow.

"The Federal Reserve begins its two-day policy meeting today in the midst of a storm. After the European Central Bank's decision, the Fed may hike 25 basis points and claim it has the tools to inject liquidity into the system to contain the crisis," comments Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

"Investors are also focused on what the Fed will do with Quantitative Tightening. I don't think the Fed will reverse its balance sheet liquidation strategy, or pause it, because crisis intervention is a tactical and short-term move, while the Fed's huge USD8.6 trillion balance sheet needs to be liquidated as soon as possible."

In the CME Group platform's FedWatch Tool -- using futures also based on the actual federal funds rate, or EFFR -- the main rate hike for the March 22 meeting has a 17 percent probability priced in for confirmation in the 450/475 bps range.

In contrast, the probability of an increase in the 475/500 bps area, an increase equivalent to 25 bps, is at 83%. The current target is between 450 and 475 bps.

Thus, the FTSE Mib opens up 2.0 percent to 26,410.97.

Among the smaller listings, the Mid-Cap rises 1.7 percent to 43,148.65, the Small-Cap advances 1.1 percent to 29,912.56 while Italy Growth is in the green 0.5 percent to 9,242.57.

In Europe, London's FTSE 100 is up 1.2 percent, Paris' CAC 40 picks up 1.4 percent, and Frankfurt's DAX 40 is in the green by 1.3 percent.

The main list in Piazza Affari is led by Saipem, up 5.4 percent followed by major banking stocks. UniCredit rises 3.8 percent, BPER Bank 2.4 percent, FinecoBank recovers with 2.8 percent.

The other two oil stocks also do well, with Tenaris up 2.5% and Eni advancing with 1.5%.

Intesa Sanpaolo--up 2.5 percent--reported Monday that it purchased 128.2 million of its own ordinary shares between March 13 and March 17.

The shares were taken over at an average price per share of EUR2.2989, for a total value of EUR294.8 million.

Terna -- in the green by 0.3 percent -- reported on Monday that electricity demand in Italy in February totaled 25.1 billion kWh, a figure down 2.2 percent from the same month in 2022.

Only two bearers, Italgas and Inwit, down 0.2 percent and 0.1 percent.

Stellantis sales-with the stock opening up 1.7 percent-in February were up slightly compared to the performance of the European market, where registrations were up about 12 percent.

As shown Tuesday by data from ACEA, the European Automobile Manufacturers' Association, the giant reported a 1.6 percent increase in sales in February having registered 153,684 cars compared to 151,260 in February 2022, with market share down to 37 percent from 41 percent in 2022.

On the Mid, CIR opens up 0.9 percent after announcing Monday the purchase over 1.8 million of its own ordinary shares between March 13 and March 17.

The shares were taken over at an average unit price of EUR0.4000, for a total value of EUR728,453.85.

Zignago Vetro gives up 0.1 percent. The company reported that Biagio Costantini - the company's commercial area director - sold 40,000 shares in the company.

The unit price was EUR17.26 for a total of EUR690,000.

Fincantieri advances 0.4 percent after announcing Friday that it has initiated a new share buyback program to service the existing incentive plans approved by the company and in particular the 2021 incentive plan.

The plan will target a maximum number of 10 million shares, corresponding to 0.6 percent of the company's share capital, and will last until April 6, 2023.

Antares Vision rises 1.4 percent. On Monday it announced that it had acquired a 15 percent stake in the share capital of Brescia-based technology start-up Isinnova Srl, for a total of EUR1.5 million.

At the top is Tamburi Investment Partners, which moves ahead 5.2 percent followed by Seco, in the green by 2.5 percent.

On the Small-Cap, Piquadro is at the top, rising with 7.2 percent. It announced Monday that it purchased 16,127 of its own shares during the period from March 13 to March 17, 2023.

The shares were purchased at an average price of EUR1.6964 for a total value of EUR27,357.38.

Also doing well were Caleffi, up 5.7 percent, Brioschi up 3.9 percent, and Exprivia, advancing 2.8 percent.

Aeffe opens up 0.7 percent after announcing Monday that as part of the new direction of subsidiary Moschino, Jeremy Scott is leaving the role of creative director, which he had held since October 2013.

"In view of the expiration of Jeremy Scott's collaboration contract, Moschino has agreed with the designer on a new development path for the brand, which has significantly increased its distinctiveness and visibility internationally over the past 10 years," the company explained in a note.

Esprinet, on the other hand, ceded 0.3 percent. On Monday, it announced that it had entered into a binding agreement to purchase, through its Spanish subsidiary V-Valley Advanced Solutions España SL, 100 percent of the capital of Lidera Network SL.

Among SMEs, Portobello opens down 4.8 percent after reporting Monday that it ended 2022 with a consolidated net income of EUR7.7 million, down 13 percent from the same period in 2021 that closed at EUR8.8 million.

"Net of the extraordinary component and the related tax effect it would amount to EUR14 million with a growth of 60 percent over the year 2021," the company note read.

Mondo TV Suisse is not yet trading. The company announced Monday that it reported sales and service revenues of about CHF1.3 million in the year ending Dec. 31, 2022 from CHF1.1 million in 2021. The figures are EUR1.3 million from EUR1.1 million in 2021, an increase of 18 percent from the previous year.

Ebitda amounts to CHF300,000 to EUR300,000 compared to an Ebitda of CHF300,000 in 2021, basically in line. Ebit was also in line with the same period last year and amounted to EUR100,000.

In New York, the Dow closed in the green 1.2 percent to 32,244.58, the Nasdaq rallied 0.4 percent to 11,675.54 while the S&P 500 closed in the green 0.9 percent to 3,951.57.

In Asia, the Nikkei closed down 1.4 percent to 26,945.67, the Hang Seng closed in the green 1.4 percent to 19,254.20, while the Shanghai Composite rallied 0.6 percent to 3,255.65.

Among currencies, the euro changed hands at USD1.0732 versus USD1.0722 at Monday's close. In contrast, the pound is worth USD1.2249 from USD1.2265 on Monday evening.

Among commodities, Brent crude is worth USD73.63 per barrel versus USD72.09 per barrel on Monday evening. Gold, on the other hand, trades at USD1,967.27 an ounce from USD1,977.22 an ounce at Monday's close.

"Gold has been trading above the USD2,000 psychological threshold but the price of an ounce is back below USD1,980 this morning, thanks to calmed nerves regarding price action on the banking front. Further improvement in sentiment could quickly bring the price of an ounce to USD1,900," commented Ipek Ozkardeskaya.

On Tuesday's economic calendar, at 1100 CET, comes of the ZEW index of economic conditions in Germany and the Eurozone. For the latter, the data on construction output will also be released.

At 1330 CET, there is also a speech by ECB President Lagarde, while at 1500 CET from the US, the figure on existing home sales is expected.

At 2130 CET, there will be the data on weekly oil inventories.

On the corporate calendar, results from B&C Speakers, Gambero Rosso, HERA, Piovan, Primsi, and Telesia are among the many scheduled.

By Chiara Bruschi, Alliance News reporter

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