Stock markets still bullish; Mib targets 28,000 mark

(Alliance News) - European stock markets Tuesday opened higher, with trading rooms assessing key economic data released this morning. Germany's inflation rate in June was confirmed at 6.4 percent, breaking the steady downward trend since the beginning of the year. In addition, U.K. unemployment rate unexpectedly rose to 4 percent in the previous three months through May, while wage growth rates exceeded expectations.

Investors express optimism that signs of further moderation in U.S. price pressures will reinforce expectations for the end of the Federal Reserve's tightening cycle.

In the CME Group platform FedWatch Tool, using futures also based on the actual federal funds rate or EFFR, confirmation of the rate at the July 26 meeting has an 8 percent probability in the 500/525 bps range. In contrast, the 25 bps rise in the 525/550 bps target is priced at 92 percent.

Thus, the FTSE Mib, marks a rise of 0.1 percent to 27,908.75.

In Europe, London's FTSE 100 is giving up 0.1 percent, Paris' CAC 40 is advancing with 0.5 percent, while Frankfurt's DAX 40 marks a green of 0.3 percent.

Among the smaller listings last night, the Mid-Cap is in the green by 0.4% at 42,415.60, the Small-Cap is in the green by 0.2% at 26,758.45 while Italy Growth is in the fractional green at 9,083.79.

On the main index in Piazza Affari, Iveco Group opens well, advancing 1.3 percent after falling 0.8 percent on the eve.

Goldman Sachs raised Ferrari's target price to EUR288 from EUR260 per share, with the stock advancing 0.2%.

UniCredit continues with its buyback plan. Most recently on Tuesday it announced that--from June 30 to July 7--it purchased, as planned, a total of 281,500 treasury shares worth about EUR6.0 million. The shares fluctuate in live declines at EUR21.28 per share.

Boost on Banca Monte dei Paschi, which advances 1.9% to EUR2.37 per share positioning itself for the third session in a row to close on the bullish side.

On the cadet segment, Iren advances 1.6 percent to EUR1.6730, on a positive balance for the third consecutive session.

Good buys also on Brunello Cucinelli, which trades plus 1.2% on its third session among the bullish side.

Salvatore Ferragamo trades in the red by 0.3% at EUR14.67. On the stock it is reported that Citigroup raised the target price to EUR16.20 from EUR18.00 'Neutral' rating.

On the SmallCap, Bialetti Industrie advances well, marking a plus 4.7 percent to EUR0.2890 rearing its head after three bearish sessions.

Pierrel, on the other hand, advances 3.0% bringing the price to EUR1.8748.

On a negative note, Alkemy is giving up 2.1%, with new price at EUR11.16 per share.

Sales are also pushing Softlab to the rear, down 3.4% after eve's green with 4.1%.

Among SMEs, finally, Clabo advances 3.0 percent to EUR2.06 per share taking the top spot on the not-yet-fully-mobile list.

Bellini Nautica, on the other hand, advances 2.0%, heading for the third session to close with a positive balance.

At the back of the pack, Alfonsino closes the list, giving up 3.7 percent to EUR0.72 per share.

In New York on European night, the Dow closed in the green by 0.6%, while the Nasdaq up 0.2% on par with the S&P 500.

Among Asian exchanges, the Nikkei closed just above parity, the Hang Seng is advancing 1.4 percent, and the Shanghai Composite is up 0.4 percent.

Among currencies, the euro changed hands at USD1.1015 versus USD1.0985 in Monday's European stock close, while the pound is worth USD1.2888 from USD1.2827 last night.

Among commodities, Brent crude is worth USD77.92 per barrel versus USD78.35 per barrel at Monday's close. Gold, meanwhile, trades at USD1,930.40 an ounce from USD1,922.55 an ounce on Monday evening.

Tuesday's economic calendar, at 0800 CEST, from the UK the average wage index and unemployment data while from Germany, at the same time, the consumer price index.

At 1000 CEST from Italy comes May industrial production while at 1100 CEST the ZEW index from the Eurozone and Germany.

In the evening, from the U.S., weekly oil stocks, which will come out at 2230 CEST.

Among the companies listed on Piazza Affari, no particular events are expected.

By Maurizio Carta, Alliance News reporter

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