(Alliance News) - The Mib index-after moving above the parity line for part of the session-closed lower Tuesday, going down to miss the 27,000-point level as trading rooms weighed mixed economic data from the Eurozone along with several quarterly corporate reports.

Heavy was the drop in the barrel price, close to a nearly 5 percent decline on a daily basis, which severely affected stocks in the sector.

Meanwhile, caution is building ahead of key policy decisions by both the U.S. Federal Reserve and the ECB scheduled for this week.

On Tuesday, in the CME Group platform FedWatch Tool, using futures also based on the actual federal funds rate, or EFFR, the main rate hike for the May 3 meeting has a 6 percent probability priced in for confirmation in the 475/500 bps range.

In contrast, the probability of an increase in the 500/525 bps area, an increase equivalent to 25 bps, is at 94 percent, up sharply on an intraday basis. The current target is between 475 and 500 bps.

On the domestic front, industrial activity in Italy contracted sharply in April, after three consecutive months of increases, while Italian inflation rose to 8.3 percent in April, up from a one-year low of 7.6 percent the previous month and market estimates of 8.2 percent.

Thus, the FTSE Mib closed down 1.7 percent at 26,630.09.

The Mid-Cap closed down 1.1 percent to 42,963.40, the Small-Cap down 1.4 percent to 28,709.06, and Italy Growth gave up 0.5.5 percent to 9,213.18.

In Europe, Paris' CAC 40 finished 1.5 percent in the red while London's FTSE 100 gave up 1.2 percent as did Frankfurt's DAX 40.

On the main list of Piazza Affari, dragged down by falling barrel prices, heavy contraction in Saipem, which gave up 7.3 percent to EUR1.2845. On the stock, Capital Fund Management raised its short to 1.20% from 1.10%, while Voleon Capital Management raised it to 0.60% from 0.55%.

For ProiezioniDiBorsa analysts, "Saipem's stock is firmly set to the downside, but over the past three sessions the shares are trying to react by forcing upward. The key level for the coming sessions passes for EUR1.394 area. A daily close above this level, in fact, could favor an upward restart of Saipem towards recent highs in the EUR1.5 area," the analysts' team writes.

For the strategy team, failure to break it, on the other hand, could cause prices to accelerate toward the nearest target in the EUR1.2745 area. The maximum bearish extension, on the other hand, could go to the EUR1.155 area, a level that already in the past had favored the restart of the bullish.

Heavy declines were also seen for Tenaris, which closed down 5.4 percent at EUR12.35 after a 2.8 percent gain on the eve of the day.

Eni, on the other hand, finished down 4.2%, with price at EUR13.17 after eve's 2.0% green. The board of directors announced Friday that it had approved consolidated results for the first quarter, having reported adjusted pre-tax profit of EUR4.98 billion, down 5.0% from the same period last year when it was EUR5.23 billion.

Among the few bullish performers, Campari jumps 2.7% after reporting Tuesday that it closed the first quarter with strong year-over-year numbers, thanks to net sales that rose to EUR667.9 million from EUR534.8 million in the same quarter a year earlier.

Also doing well was STMicroelectronics, which posted plus 1.5 percent, rearing its head again after two bearish sessions.

On the Mid-Cap, boost on Salcef, which moves ahead 1.9% to EUR21.60. Of note, the stock during the session touched its new 52-week high of EUR22.00.

Tamburi Investment Partners - up 1.7 percent - announced Monday that it has reached an agreement to acquire 51 percent of Investindesign Spa, a company that currently holds a majority stake in Italian Design Brands Spa. TIP, for the purchase of 50.7 percent of Investindesign's capital will invest EUR72 million, giving IDB an economic capital value of EUR220 million.

In red, also the prevailing color on this list, GVS gives up 6.1 percent, after last session's green of 2.3 percent.

Reflecting the oil sector's bad day Saras steps back 3.5% to EUR1.1320, after Friday's tentative gain of 0.8%.

On the Small-Cap, Restart finishes ahead 0.8 percent, bringing the price to EUR0.2550.

Bialetti Industrie, on the other hand, rises 4.7% to EUR0.2440, after three bearish sessions.

PLC, on the other hand, closes flat, with price at EUR1.3550. On Friday, the board of directors approved the financial statements for the year to December 31, 2022, reporting revenues down to EUR60.6 million from EUR67.6 million in 2021. It reported a loss of more than EUR15.8 million in 2022 from a profit of nearly EUR3.0 million in 2021.

In the rear is Mondo TV, which marks a minus 8.2 percent tacking down after two bullish sessions.

Finally, among SMEs, Fenix Entertainment tops with more than 14 percent after announcing on Friday that the value of production for the first quarter of 2023 amounts to EUR7.5 million from EUR4.6 million in the first quarter of 2022.

Casta Diva also rises over 14% to EUR1.19, rearing its head again after two bearish sessions.

Convergences gave up 9.1 percent to EUR2.00 per share, placing the stock for the fifth session on the bearish side.

MeglioQuesto, on the other hand, gave up 0.9 percent. The company reported that the board resolved to initiate a EUR7.0 million capital increase reserved for Pierluigi Ghiani and Francesco Simula. The transaction will be developed through the issuance of 4.0 million ordinary shares at a subscription price of EUR1.75 each. Of the amount of the capital increase, EUR400,000 will go to increase the company's share capital while EUR6.6 million will be allocated to share premium reserve.

In New York, the Dow Jones is giving up 0.5 percent, the Nasdaq 1.3 percent, and the S&P 500 is stepping back 1.6 percent.

Among currencies, the euro changes hands at USD1.0959 versus USD1.0942 at Friday's close. By contrast, the pound is worth USD1.2468 from USD1.2577 on Friday evening.

Among commodities, as mentioned, decline for the barrel with Brent crude worth USD75.61 per barrel versus USD80.30 per barrel Friday night. Gold, on the other hand, trades at USD2,012.09 an ounce from USD1,991.95 an ounce at Friday's close.

On Wednesday's macroeconomic calendar, at 1000 CEST, the Italian unemployment rate is expected, followed at 1100 CEST by the Eurozone unemployment rate. At 1300 CEST, it will be the turn of the US 30-year mortgage rate.

From the US, at 1415 CEST, will come the ADP data while, at 1545 CEST, space will be given to the tertiary sector purchasing managers' index. At 1630 CEST, it will be the turn of the EIA refinery count. Finally, at 2000 CEST, the expected FOMC decision on interest rates.

Among Piazza Affari companies, however, the results of Ariston Holding, EdiliziAcrobatica, Enel, Leonardo, Maire Tecnimont, Poste Italiane, Safilo and Stellantis are expected.

By Maurizio Carta, Alliance News reporter

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