(Alliance News) - European stocks closed in a bearish trend again on Tuesday, with trading rooms assessing the global economic and monetary policy outlook. Gediminas Simkus of the ECB expressed his belief that a September rate hike would not be surprising, citing the persistent nature of inflation. That statement comes a day after his colleague, Schnabel, said it would be better to "err on the side of doing too much rather than too little."

Meanwhile, in the markets, Fed Chairman Jerome Powell's congressional testimony later this week is expected, along with the release of U.K. inflation data and the Bank of England's policy meeting, also expected to be up 25 bps.

On the data front, German producer price inflation in May slowed more than expected to 1 percent, marking the lowest level since early 2021.

So the FTSE Mib closed down 0.6 percent to 27,576.11, the Mid-Cap gave up 0.6 percent to 42,967.60, the Small-Cap in the red 0.6 percent to 27,247.73 while Italy Growth contracted 0.6 percent to 9,082.97.

In Europe, Paris' CAC 40 closed down 0.4 percent, London's FTSE 100 in the red by 0.3 percent, while Frankfurt's DAX gave up 0.6 percent.

On the main basket of Piazza Affari, among the bullish-minority on the list was BPER Banca, which posted a plus 1.5 percent, in its third bullish session.

Telecom Italia is up 0.6 percent, after it announced that the board of directors met Monday to review, as part of the competitive process related to Netco, the two non-binding bids submitted, respectively, by the consortium formed by CdP Equity Spa and Macquarie Infrastructure and Real Assets (Europe) Limited, acting on behalf of a group of investment funds managed or advised by the Macquarie Group, and Kohlberg Kravis Roberts & Co LP, also known as KKR. TIM's board of directors will complete its review of the bids on June 22.

Terna rises 0.1 percent after announcing Monday that a share buyback program will be launched on June 22, for a maximum outlay of EUR7 million and a total number of ordinary shares not exceeding 1.4 million, representing about 0.1 percent of the company's share capital.

Stellantis, on the other hand, sold 2.3 percent at EUR15.38 per share. As Francesco Bonazzi writes in Alliance News, "the government led by Giorgia Meloni, after receiving a sharp no to the hypothesis of entering the capital of the French carmaker, is looking for other manufacturers to come and produce cars in Italy. "Our incentives go largely to cars produced abroad," said Minister of Enterprise and Made in Italy, Adolfo Urso.

"The automotive situation in Italy is close to collapse, due to the few orders from Stellantis and the fact that we do not have other domestic manufacturers of sufficient size. Yesterday, Minister Adolfo Urso, at the end of the union tables on the situation of the sector, broke an age-old taboo, for Italy, wishing for the descent of other automotive causes in the Peninsula," Bonazzi stressed.

Mediobanca closed 1.1 percent in the red after it announced Monday that Compass, the group's consumer credit company, has signed an agreement to take over 100 percent of HeidiPay Switzerland from HeidiPay, a fast-growing Swiss financial company specializing in Buy Now Pay Later, with more than 400 commercial agreements with major distributors, luxury brands and technology operators, active in the territory.

Tenaris, on the other hand, gave up 2.4 percent, closing for the third session in a row among the bearish.

On the Mid-Cap, good session for Seco, which brought home a green of 1.6 percent after two bearish sessions.

OVS, on the other hand, picked up a plus 1.2 percent, rearing its head after two bearish sessions.

On a negative note, GVS gave up 3.1 percent, following up on the 1.8 percent decline in the eve.

Maire Tecnimont closed down 0.4 percent after announcing Tuesday that its subsidiaries part of the Integrated E&C Solutions and Sustainable Technology Solutions business units won new contracts worth a total of about USD260 million from international clients mainly in Europe, Asia and South America.

Rai Way, on the other hand, gave up 1.6 percent, after a 2.0 percent green on the eve of the event.

Technogym, on the other hand, rallied 0.7 percent after announcing Monday that it unveiled its medium-term profitable and sustainable growth targets. Revenues are expected to grow at an average annual rate of about 10 percent due to the launch of new products, digital and AI solutions, entry into new markets, and growing interest in exercise protocols aimed at health. Adjusted Ebitda margin is expected to grow between 40 and 70 basis points annually due to economies of scale, quality improvement, logistics optimization and supply chain control.

On the Small-Cap, buying on Il Sole 24 Ore, which brought home a plus 4.8 percent after Monday's 1.7 percent decline at the close.

Boost also on Gequity, which moved ahead 3.4 percent after two sessions closed in the red.

algoWatt gives up more than 12 percent. The company announced Monday that it has approved its new business plan to 2025, consistent with the proposed updated financial maneuver announced earlier to the market and to "exit the current state of financial stress, through the modification of the business model and a review of the company's strategic and financial objectives," as specified in a note.

The plan estimates value of production growth of 51 percent, with cumulative revenues of about EUR134 million, with intermediate revenue targets of about EUR18 million in 2023, EUR42 million in 2024 and EUR64 million in 2025.

Also trailing behind was Fidia, which posted a 3.3 percent decline after a 0.4 percent loss on the eve.

Among SMEs, Deodato.Gallery gave up 6.7 percent, in its fifth session on the bearish side of the list.

GO internet's board of directors -- down 6.0 percent -- on Friday approved the new 2023-2027 business plan drafted in line and continuity with the previous plan approved on June 8, 2020. The plan forecast revenues between EUR15.5 and EUR16.5 million, Ebitda between EUR2.5 million and EUR3.0 million, an Ebitda margin between 17 percent and 18 percent, and a negative Net Financial Position between EUR2.8 and EUR2.0 million.

Ecosuntek, on the other hand, rallied 5.0 percent, rearing its head again after two sessions of decline.

Among U.S. exchanges, the Dow Jones is giving up 0.9 percent, the S&P 0.7 percent, and the Nasdaq is contracting 0.6 percent.

Among currencies, the euro changes hands at USD1.0901 versus USD1.0924 in Monday's European stock close. In contrast, the pound is worth USD1.2740 from USD1.2799 last night.

Among commodities, Brent crude is worth USD75.38 per barrel versus USD76.41 per barrel at Monday's close. Gold, meanwhile, trades at USD1,934.87 an ounce from USD1,955.70 an ounce last night.

On Wednesday's macroeconomic calendar, at 0800 CEST from the UK the inflation figure, Italian, German and French car registrations.

At 1300 CEST from the US will come the mortgage market report.

At 1600 is scheduled to speak Fed number one Powell, as well as Governors Cook and Jefferson. At 2200 CEST it will be Mester's turn.

At 2230 CEST, the weekly oil stocks figure.

In the stock market, no special events are scheduled.

By Maurizio Carta, Alliance News reporter

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