(Alliance News) - On Tuesday, Piazza Affari and major European stock exchanges are expected to be in negative territory from IG futures as they await Eurozone inflation data and construction PMIs, while overseas the JOLTs job openings report is due in the afternoon.

The beginning of 2025 marked the disruption of gas flows from Russia to Europe via Ukraine amid intense cold weather and rapidly depleting European reserves. As a result, European natural gas futures rose as much as 30 percent in the last two weeks of December.

"The big problem with rising energy prices is that it is reflected in inflation data. Yesterday, German inflation rose to 2.9 percent in December from 2.4 percent the previous month, and the Eurozone aggregate CPI index, expected later this morning, is likely to show similar upward pressure. This is not a positive for the European Central Bank, which is expected to support weakened European economies with large rate cuts this year," explains Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

For the analyst, a rise in inflation could limit the ECB's ability to ease financial conditions, supporting the euro but penalizing equities. A higher-than-expected inflation figure could hamper the Stoxx 600's rise and push EUR/USD above 1.04, toward 1.05.

Futures give the FTSE Mib down 177.5 points or 0.5 percent after closing Monday up 1.9 percent at 34,780.81.

In Europe, Paris' CAC 40 is expected to be down 0.5 percent or down 35.5 points, Frankfurt's DAX 40 is expected to be down 0.4 percent or down 81.6 points, and London's FTSE 100 is expected to be down 0.6 percent or down 48.6 points.

In Milan on Monday evening, the Mid-Cap rose 0.9 percent to 48,154.56, the Small-Cap ended up 0.6 percent to 28,631.94, and Italy Growth gained 0.7 percent to 8,000.34.

On the highest-capitalization list in Piazza Affari, STMicroelectronics did best of all, rising 7.9 percent, rebounding after recent declines, buoyed by positive expectations on financing in artificial intelligence.

Also doing well were Amplifon, up 5.5 percent, and Moncler, up 4.6 percent.

Iveco Group--up 3.8 percent--reported that ownership of Magirus GmbH and its firefighting equipment subsidiaries has been transferred to Mutares SE & Co. KGaA under the terms of the agreement described in March last year.

Mediobanca gained 2.2 percent. Mediobanca Premier launched the Amundi Eltif Agritaly Pir III Lux fund, focused on the Italian agribusiness sector, which offers tax benefits such as exemption from capital gains and inheritance taxes if regulations are met.

This fund, operational from 2021 and with assets under management of EUR125 million by mid-2024, has already supported realities such as the Miscusi and Pistacchio chains through direct investments.

Italian agribusiness, valued at EUR335 billion, offers ample opportunities, particularly in private markets, where many companies are not listed. The initiative is strategic for Mediobanca, which aims to strengthen its asset management platform by 2026.

Stocks in the banking sector fared well, with UniCredit finishing up 3.1 percent, Banco BPM gaining 2.3 percent, Intesa Sanpaolo closing up 2.1 percent, Banca Mediolanum advancing 2.1 percent, BPER Banca rising 1.8 percent, and Banca Popolare di Sondrio in the green 1.2 percent.

Banca Monte dei Paschi di Siena closed in the green by 2.4 percent. As Milano Finanza reported Monday, for the year just ended, the estimate is for a pre-tax profit of more than EUR1.3 billion and dividends of more than EUR950 million, with a payout ratio increased from 50 percent to 75 percent.

There were only five bearish stocks on the main list, with Snam retreating 0.1 percent, Terna in the red 0.3 percent, Italgas closing down 0.5 percent, and Hera finishing down 0.8 percent as did A2A.

On the Mid-Cap, Technoprobe was up 7.5 percent and posted the sharpest rise, with nearly 500,000 shares traded.

At the bottom, Juventus FC dropped 6.8% after losing to AC Milan in the Italian Super Cup semifinal, thus forgoing a higher prize from the competition.

Philogen rose 2.7 percent. Just before Christmas, the company announced that it had approved a new share buyback plan that may target a maximum of 250,000 shares and a maximum outlay of EUR5 million.

Tinexta - in the green by 3.8 percent as well as Banco di Desio e della Brianza.

Webuild - in the green by 4.2 percent - announced Monday the opening to the public of the Orange Line - Line 3 - of the Riyadh Metro, part of one of the world's largest urban mobility infrastructure projects.

On the Small-Cap, Netweek gave up 6.1 percent and finished at the bottom of the list.

Eurotech and EPH flew, with rises of 26% and 14%, respectively.

Geox finished 1.4% in the red. Helikon Long Short Equity Fund Master raised its short position on the stock to 0.92 percent from 0.88 percent previously.

On the alternative capital market of Borsa Italiana, good times ended for Edgelab, which closed down 16 percent at EUR7.40 per share.

Double-digit rises for Vantea SMART and La Sia, up 22% and 18%, respectively.

In Asia, the Nikkei closed Tuesday up 2.0 percent to 40,105.30, the Shanghai Composite gained 0.6 percent to 3,226.24, and the Hang Seng gave up 1.5 percent to 19,384.35.

In New York on Monday, the Dow closed fractionally in the red at 42,706.56, the Nasdaq gained 1.2 percent to 19,864.98 while the S&P 500 finished up 0.6 percent to 5,975.38.

Among currencies, the euro changed hands at USD1.0409 against USD1.0394 in Monday's European equities close. The pound is worth USD1.2548 from USD1.2523 on Monday evening.

Among commodities, Brent crude is worth USD73.36 per barrel from USD76.80 per barrel at Monday's close. Gold trades at USD2,651.59 an ounce from USD2,651.06 an ounce on Monday evening.

Tuesday's macroeconomic calendar has France's inflation at 0845 CET.

At 0930 CET the construction PMIs for Italy, Germany, France and the Eurozone will be released while at 1000 CET the unemployment rate in Italy will be published; at 1030 CET the UK construction PMI is scheduled; at 1100 CET inflation data for Italy and the Eurozone will arrive.

In the afternoon, at 1430 CET, the US trade balance will be published followed at 1600 CET by JOLTs new jobs report.

The day closes at 2230 CET with data on US crude oil stocks.

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

By Antonio Di Giorgio, Alliance News reporter

Comments and questions to redazione@alliancenews.com

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