(Alliance News) - Major European stock markets are expected to open lower on Tuesday, except for Milan, where the Mib is expected to be in the green.

"European markets struggled for direction yesterday after German fourth-quarter GDP showed a surprise contraction of 0.2 percent and core CPI in Spain rose to an all-time high of 7.5 percent, pushing yields across the bloc sharply higher. With the ECB meeting scheduled for later this week and the expected 50 basis point rate hike, yesterday's weakness appears to have been driven by concerns that the EU economy may not be as strong as previously thought and inflation much more sticky," commented Michael Hewson, Chief Market Analyst at CMC Markets UK.

Thus, the FTSE Mib is expected to rise 65 points or 0.3 percent after closing down 0.4 percent at 26,335.98,

In Europe, London's FTSE 100 is expected to be in the red by 26.8 points or 0.3 percent, Paris' CAC 40 is expected to open down 27.8 points or 0.4 percent, and Frankfurt's DAX 40 is expected to be down 55.5 points or 0.4 percent.

On the macro front, Germany's Federal Statistical Office reported Tuesday that retail sales in Germany unexpectedly fell 5.3 percent month-on-month in December 2022, reversing the upwardly revised 1.9 percent increase in November and compared to market forecasts of a 0.2 percent increase. It is the largest decline since July 2021.

Monday night, the Mid-Cap closed down 0.5 percent to 43,089.33, the Small-Cap gave up 0.3 percent to 29,593.71, and Italy Growth lost 0.6 percent to 9,590.87.

On the main list of Piazza Affari, Eni -- down 0.9 percent -- and TotalEnergies completed the transfer to QatarEnergy of a 30 percent stake in exploration blocks 4 and 9, off the Lebanese coast. The transfer agreement was signed on Sunday in Beirut, in the presence of Lebanon's Prime Minister Najib Mikati, Lebanon's Minister of Energy and Water Walid Fayad, QatarEnergy's chairman and CEO and Minister of State for Energy Affairs of Qatar Saad Sherida Al-Kaabi, Eni CEO Claudio Descalzi, and TotalEnergies CEO Patrick Pouyanné.

Eni disclosed that Italy and Libya signed a USD8 billion gas deal Saturday, during Italian Prime Minister Giorgia Meloni's visit to the North African country, to develop two offshore fields.

The agreement aims to increase gas production to supply the Libyan market and for exports to Europe, Eni said.

A2A - in the red by 1.3 percent - reported that it has placed a new EUR500 million "Green Bond" with an 11-year term. The issue attracted great interest, receiving orders for about EUR2.2 billion, about 4 times the amount offered.

TIM, up 4.6 percent, did best of all. "The buoyant tone of the stock in Piazza Affari comes after Saturday's rumors that Cassa Depositi e Prestiti was ready, along with Macquarie and KKR, to put EUR24 billion for the TIM network in the pot. Vivendi, the leading shareholder with 24 percent, has informally responded that the valuation would be far from what it considers correct," commented Alliance News columnist Francesco Bonazzi.

"Certainly, in the past months there had been talk of a CDP proposal in a range between EUR17 and EUR19 billion, and so we would be looking at a robust increase. However, the distances are still important and now it only remains to be seen whether in fact, by mid-month, this new offer from the group controlled by the Treasury and foundations, which also has 10% of Telecom, will arrive. Certainly, the rumors confirm the government's great attention to this game that was hoped, if not to close, to set up in a concrete way already at the end of last year."

On the Mid-Cap, Enav - in the red by 0.4 percent - started a share buyback program for up to 1.3 million shares.

Brunello Cucinelli closed 0.8 percent in the red. The company announced on Friday that it had purchased 15,883 of its own ordinary shares between January 23 and 26, 2023. The shares were purchased at an average price of EUR73.4120 for a total value of about EUR1.2 million.

Red also for another luxury sector stock, Salvatore Ferragamo, which fell 3.0 percent. UBS raised its target price on the stock to EUR14.50 from EUR14.00.

On the Small-Cap, Civitanavi Systems - down 1.7 percent - and PV-Labs, a Canada-based company engaged in the design and manufacture of gyro-stabilized gimbals and advanced ISR&T imaging systems, announced the signing of a binding agreement for CNS to purchase a 30 percent minority stake in PV-Labs for USD2.5 million.

Caleffi - in the green by 3.3 percent - announced on Friday that its board of directors had resolved to purchase from Giuliana Caleffi the remaining 30 percent of the share capital of its subsidiary Mirabello Carrara, a company specializing in the production, purchase and sale of home textiles under its own brands and under license from authoritative fashion brands, and to sign the related purchase and sale agreement.

Among SMEs, Tecma Solutions - in the green by 4.9% - announced that it has signed a loan agreement with Intesa Sanpaolo in the amount of EUR2.5 million, with a term of 6 years and an initial grace period of 18 months.

The loan agreement, in line with the best market conditions, does not include covenants or guarantees other than the benefit of the guarantee from the InvestEU Fund.

Casta Diva Group -- up 1.7 percent -- on Monday reported that its board of directors reviewed the preliminary consolidated revenue figure for fiscal year 2022, not yet audited, which closed at EUR82 million, up 175 percent from EUR29.7 million in 2021.

The board of directors of expert.ai - in the green by 2.8 percent - resolved to partially exercise the proxy given to it by the shareholders' meeting, increasing the share capital for cash and in divisible form, for a total amount, including share premium, of EUR239,974.00, one tranche of which was assigned to Walt Mayo - the company's ceo - by issuing 393,400 new ordinary shares with regular dividend entitlement, with no indication of the par value expressed at a price of EUR0.61 per share.

In New York overnight Europe, the Dow closed 0.8 percent in the red at 33,717.09, the Nasdaq gave up 2.0 percent to 11,393.81 and the S&P 500 fell 1.3 percent to 4,017.77.

In Asia, the Nikkei 225 closed down 0.4 percent at 27,327.11, the Hang Seng was down 1.6 percent at 21,707.96, and the Shanghai Composite finished 0.4 percent in the red at 3,255.67.

Among currencies, the euro changed hands at USD1.0846 versus USD1.0867 at Friday's close. In contrast, the pound is worth USD1.2351 from USD1.2374 on Monday evening.

Among commodities, Brent crude is worth USD84.79 per barrel from USD85.24 per barrel on Monday evening. Gold, meanwhile, trades at USD1,913.51 an ounce from USD1,923.90 an ounce last session.

Tuesday's calendar includes, in Italy at 0900 CET, the release of GDP data.

At 0955 is the turn of the German unemployment rate, which in Italy is published five minutes later.

At 1000 comes the Spanish current account, while at 1030 CET there are UK data on BoE consumer credit, M4 money supply and mortgage approvals.

At 1100 CET comes Eurozone GDP.

In the afternoon, at 1400 CET, it is the turn of German inflation, while from Canada comes GDP data.

Among the companies listed in Piazza Affari are Convergenze, Esautomotion and NVP.

By Chiara Bruschi, Alliance News reporter

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