(Alliance News) - European stocks are paerto the upside Tuesday, extending a rebound after last week's sharp decline, as markets assess the extent of risks of slowing growth in Europe and the outlook for the cost of money ahead of key U.S. price data this week.

Fed Governor Michelle Bowman said over the weekend that despite more modest inflation numbers in May and June, inflation remains above the FOMC's 2 percent target. Markets have therefore downgraded their positioning on Federal Reserve rate cuts, seeing a greater likelihood of a 25 basis point cut in September than a larger 50 basis point cut.

Analysts still expect a total Fed cut of more than 100 basis points this year.

The FTSE Mib is marking a 0.2 percent green at 31,994.03.

Among the smaller listings, the Mid-Cap is in the green 0.2 percent to 45,191.33, the Small-Cap is in the green 0.2 percent to 27,918.25, and Italy Growth is in the green 0.2 percent to 7,883.27.

In Europe, London's FTSE 100 is advancing 0.3 percent, Paris's CAC 40 is in the green by 0.2 percent, and Frankfurt's DAX 40 is marking plus 0.4 percent.

On the Mib, Ferrari is advancing 1.4 percent to EUR391.00 per share after a flat session on eve.

Banca Mediolanum, on the other hand, advances 1.1 percent. The company announced Monday that it bought 589,000 of its own ordinary shares between August 5 and 9, for a total value of EUR5.8 million.

Telecom Italia is advancing 1.0 percent. TIM, Impulse I - a consortium led by Ardian - and Daphne 3 have reached an agreement to sell TIM's remaining 10 percent stake in the share capital of the holding company Daphne 3, which holds a 29.9 percent stake in Infrastrutture Wireless Italiane. The agreement is based on a valuation of INWIT shares of EUR10.43 and implies for TIM additional proceeds, compared to the 2024 guidance, of about EUR250 million, taking into account the existing net debt at the level of Daphne 3.

BPER Banca, on the other hand, contracted 1.7 percent to EUR4.69, following up on the eve's 0.3 percent decline that broke three sessions with a bullish candle.

On the MidCap, Mondadori Editore is appreciating 1.2 percent, following a 0.4 percent decline in the previous session.

Cembre, on the other hand, is advancing 1.1 percent, following the 1.1 percent green with which it closed Monday evening.

For Webuild, on the other hand, the rise is 1.0 percent, following up on the eve's gain that closed with a plus 0.6 percent.

OVS, on the other hand, is giving up 1.3 percent. The company on Monday reported that it purchased -- in the period between Aug. 5 and Aug. 9 -- 520,594 of its own ordinary shares. The average unit price was EUR2.4051, for a total value of just under EUR1.3 million.

On the SmallCap, Bastogi is advancing 4.4 percent to EUR0.4030 per share, after 3.0 percent red on eve.

Gabetti, on the other hand, is registering a plus 3.8%, after 3.1% red in the previous session.

Landi Renzo, on the other hand, is advancing 2.5 percent, after a 1.4 percent gain on the eve.

Among SMEs, Defence Holding is up 7.5 percent to EUR3.55, after a 0.3 percent decline in the eve.

Circle - in the green by 0.5 percent - on Tuesday reported that it has signed a major contract with a Mediterranean port to implement advanced Port Community System (PCS) services. The agreement is worth more than EUR150,000.

Gentili Mosconi, on the other hand, gives up 1.2 percent, following a 1.6 percent red note in the previous session.

In New York on the European evening, the Dow gave up 0.4 percent, the Nasdaq picked up 0.2 percent, and the S&P 500 closed at a parity.

Among Asian exchanges, the Shanghai Composite rallied 0.3 percent, the Hang Seng was in the green by 0.3 percent, while the Nikkei closed ahead 3.5 percent.

Among currencies, the euro changed hands at USD1.0929 versus USD1.0933 in Monday's European equities close while the pound was worth USD1.2805 from USD1.2788 on Monday evening.

Among commodities, Brent crude is trading at USD81.82 per barrel versus USD80.54 per barrel at Monday's close. Gold, on the other hand, trades at USD2,464.15 an ounce from USD2,448.24 an ounce on Friday evening.

Tuesday's macroeconomic calendar includes, at 1100 CEST, the release of the ZEW index of German and Eurozone economic conditions, coming at the same time as China's money supply data.

In the afternoon, at 1430 CEST, focus on U.S. producer prices. The day will close with weekly U.S. crude oil inventories.

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

By Maurizio Carta, Alliance News reporter

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