(Alliance News) - European stock markets are trending higher on Wednesday, buoyed by the trade agreement between the US and Japan. The deal has fueled expectations of further agreements and tariff reductions, sending the Japanese stock index up 3.5% to its highest level in over a year.

US President Trump announced that Japan has agreed to a 15% tariff on its exports to the US, as well as committing to invest USD 550 billion in the US and open its markets to key American products. Trump also added that EU representatives will meet today for new trade negotiations.

The FTSE Mib is therefore up 2.0% at 40,978.74 points.

Among the smaller indices, the Mid-Cap is up 1.1% at 55,455.78, the Small-Cap is up 0.9% at 32,597.44, while the Italy Growth is up 0.2% at 8,333.25.

On other markets, the CAC 40 is up 0.9%, as is the DAX 40 in Frankfurt, while the FTSE 100 in London is up 0.6%.

On the Mib, among the few losers is STMicroelectronics, down 3.1% to EUR27.33 per share, after losing 0.7% the previous day.

Stellantis is up 7.2% to EUR8.45 per share, after losing 1.9% in the previous session.

Iveco advanced 7.1%, bringing the price to EUR19.70 per share, a new 52-week high.

UniCredit's board of directors, up 4.5%, announced on Wednesday that it had approved the group's consolidated results as of June 30, closing with a net profit of EUR 3.3 billion. This represents a significant increase of 21% compared to the previous quarter and a jump of almost 25% on an annual basis.

This increase is reflected positively in RoTE, which reached a solid 24.1%, up 2.2% quarter-on-quarter and 4.3% year-on-year. EPS (earnings per share) also rose significantly to EUR2.16, up almost 34% on the previous year.

Poste Italiane, on the other hand, rose 1.7% to EUR18.65 per share. It should be noted that Beremberg, following the good results, raised its target price to EUR20.10 from EUR19.70 per share.

Amplifon, up 0.9%, announced on Tuesday that it had purchased 279,516 ordinary treasury shares between July 14 and 18. The average unit price was EUR19.484 per share, for a total value of approximately EUR5.4 million.

Azimut Holding - up 1.1% - announced on Tuesday that it is decisively consolidating its presence in the US. The group has signed a binding agreement to acquire 100% of North Square Investments, a multi-boutique management and distribution platform with $16 billion in assets under management.

As the company explained in a statement, the transaction marks a fundamental step in Azimut's global expansion strategy, elevating the US to its second key market after Italy.

In the mid-cap segment, Anima Holding is performing well, pushing its price up 4.1% after two sessions of decline.

Ariston Holding gained 5.1% to EUR4.65 per share, after falling 2.3% the previous day.

Piaggio also saw buying, pushing the stock up 4.0% after the previous session's 2.3% decline.

Among the few losers was ERG, which interrupted a mini-bullish trend that lasted three sessions. The stock fell 0.8%.

Avio, on the other hand, fell 1.0%, closing at EUR24.80 and reversing course after four sessions of gains.

On the Small-Cap index, Eurogroup Laminations led the way with a 6.0% gain after two sessions of declines.

Aedes advanced 3.8% to EUR0.2060 per share, after falling 2.7% in the previous session.

FNM, up 1.2%, announced on Tuesday that it had signed a EUR 1 billion loan agreement with the aim of strengthening the group's financial structure.

Digital Bros, on the other hand, is down 2.0%, after two sessions that closed with a bullish candle and a price of EUR15.62 per share.

Among SMEs, Destination Italia took the top spot on the index, advancing 3.7% after an 8.1% decline the previous day.

Circle, up 1.9% to EUR 7.38, announced on Wednesday that eXyond, a subsidiary of the company, has signed a contract with a Campania-based company, which has been a customer for several years, to expand its telematics and geolocation services. The contract is worth a total of almost EUR 100,000.

Racing Force - flat at EUR4.70 - announced on Wednesday that it had recorded consolidated sales of EUR39.3 million in the first half of the year, up 4.6% compared to the same period last year. Consolidated revenues for the second quarter amounted to EUR 18.7 million, up 9.7% from EUR 17.0 million in the second quarter of 2024.

Innovatec, on the other hand, is down 1.2%, subject to profit taking after two sessions in which it gained a total of over 10%.

In New York last night, the Dow Jones gained 0.4%, the Nasdaq lost 0.4%, while the S&P 500 gained 0.1%.

Among Asian markets, the Hang Seng closed up 1.6%, the Shanghai Composite ended just above par, while the Nikkei closed up 3.5%.

Among currencies, the euro traded at USD 1.1736 from USD 1.1739 at Tuesday's close, while the pound traded at USD 1.3543 from USD 1.3515 last night.

Among commodities, Brent crude traded at USD 68.19 per barrel, down from USD 68.41 at the previous close, while gold was worth USD 3,430.95 per ounce, up from USD 3,424.66 last night.

Wednesday's macroeconomic calendar - in a morning poor in macro data on the European front - includes the release of the US mortgage report at 1300 CEST. At 1630 CEST, the EIA report will be released, while at 1900 CEST a 20-year Treasury bond auction is scheduled.

By Maurizio Carta, Alliance News Reporter

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