(Alliance News) - European stock markets on Wednesday confirmed the trend of futures in pre-opening trading, marking an upward path. The banking sector--primarily in Milan--marked a preponderance of buying after the Italian government eased its stance on the extra-profits levy and clarified that it will be limited to 0.1 percent of total banking assets.

In China, consumer prices fell 0.3 percent year-on-year in July, the first decline since February 2021, compared with a flat figure in June and market estimates for a 0.4 percent drop. The data were released Wednesday by the National Statistics buerau of China. Among the various segments, it is reported that the cost of food decreased by 1.7 percent, after rising in the previous 15 months due to a collapse in pork prices.

On the monetary policy front, a top U.S. Federal Reserve official believes interest rates may have peaked, but warned that they will have to remain at a high level for a while.

The FTSE Mib is advancing 1.8 percent to 28,430.26.

Paris' CAC 40 is advancing 1.3 percent, Frankfurt's DAX 40 is up 1.0 percent, and London's FTSE 100 is advancing 0.8 percent.

Among the smaller lists, the Mid-Cap is up 0.9% to 41,861.59, the Small-Cap is in the green 0.6% to 26,821.29, and Italy Growth is up 0.2% to 8,871.98.

Leading the list on the Mib are banks, which were the protagonists of significant selling volumes yesterday after the government decree on the taxation of the infamous "extra-profits."

FinecoBank leads the pack, advancing 3.3 percent, UniCredit marks a plus 2.2 percent, while Intesa Sanpaolo advances with 2.1 percent.

Among nonbanks, high quarters also for Eni, which advances 1.5 percent after two sessions closed with a negative balance.

The only bearish at the moment is Leonardo, which marks a red 0.2% with price at EUR13.32.

On the cadet segment, equally starring are banks, with BFF and Credito Emiliano advancing 2.7 percent and 2.4 percent, respectively.

The board of Banca Popolare di Sondrio -- up 1.8 percent -- reviewed and approved the consolidated half-year financial report as of June 30 with a record net profit of EUR207.1 million from EUR105.0 million in the same period last year.

At the tail end, Eurogroup Lamination retreats 0.6 percent, after 1.4 percent green on eve.

On the SmallCap, Autostrade Meridionali is advancing, which is picking up 4.0% after a 1.4% loss on eve.

Civitanavi System, on the other hand, advances with 2.4%, recovering from the 1.1% loss on eve.

High quarters also for Alkemy, which moves ahead 2.2% with price at EUR10.36.

Pininfarina closes the list, posting a minus 4.2% following a smaller red of 0.2% last night.

Among SMEs, Askoll Eva is advancing 4.3%, attempting to recover from a weekly red still above 9%.

Good buying also on Eles, which is up 4.2% following last night's 1.7% gain.

Digital360 - still flat at EUR5.30 - announced Tuesday that it has issued a bond for a total principal amount of EUR8 million.

In New York overnight Europe, the Dow Jones closed down 0.5 percent, the S&P gave up 0.4 percent, and the Nasdaq finished 0.8 percent in the red.

In Asia on Wednesday, the Nikkei 225 index in Tokyo fell 0.5 percent. In China, the Shanghai Composite closed 0.5 percent in the red, while Hong Kong's Hang Seng Index trades slightly down.

Among currencies, the euro changed hands at USD1.0972 versus USD1.0970 in Tuesday's European stock close while the pound was worth USD1.2764 from USD1.2731 Tuesday evening.

Among commodities, Brent crude is worth USD85.97 per barrel versus USD85.20 per barrel at last night's close. Gold, on the other hand, trades at USD1,929.25 an ounce from USD1,925.83 an ounce Tuesday night.

On Wednesday's economic calendar, there are Gilt auctions in the UK at 1100 CEST and Bund auctions in Germany at 1130.

In the afternoon, from the U.S., mortgage data are scheduled at 1300 CEST while crude oil stocks will come out at 1630 CEST.

On the Piazza Affari calendar, the results of Assicurazioni Generali, Emak and Laboratorio Farmaceutico Erfo will come out.

By Maurizio Carta, Alliance News reporter

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