(Alliance News) - European stock markets opened in a bullish direction Tuesday, following Wall Street's trend and extending the previous session's gains as concerns about the possible victory of right-wing parties in the upcoming French parliamentary elections faded.

As we approach the vote - to be held between June 30 and July 7 - European financial markets are likely to face a period of uncertainty. The main concerns relate to voter turnout and the possibility that the major players will form coalitions.

The most likely scenario is that Marine Le Pen's National Rally becomes the leading party in France. Since 2017, Le Pen's party has softened its anti-EU stance and no longer calls for a "Frexit."

However, her election could worsen France's deficit, which reached 5.5 percent of GDP last year and prompted S&P Global to recently downgrade France's sovereign credit rating to AA-.

Markets also await the Bank of England's policy decision on Thursday, which is expected to hold rates steady at 5.25 percent before cutting them in August, according to analysts.

Thus, the FTSE Mib is marking a 1.2 percent rise to 33,297.12 points.

In Europe, London's FTSE 100 is advancing 0.5 percent, Paris' CAC 40 is up 0.3 percent, and Frankfurt's DAX 40 is marking a 0.5 percent gain.

Among the smaller lists, the Mid-Cap is advancing 0.4 percent to 46,822.74, the Small-Cap is up 0.5 percent to 28,685.49, while Italy Growth is advancing 0.3 percent to 8,085.39.

On the blue chip list, good start for UniCredit, which appreciates 2.5 percent with new price at EUR34.00, following eve's green with 1.9 percent.

High quarters also for Leonardo, with the defense company moving ahead 3.2%, on the heels of last night's green of 2.8%. Of note, Marshall Wace on Monday limned its short position on the stock to 1.21 percent from 1.18 percent previously.

STMicroelectronics trades in the green by 1.4 percent at EUR40.29 per share. On the stock it is mentioned that Goldman Sachs revised the target price to ER45.50 from the previous EUR33.00.

DBRS Morningstar on Monday revised the trend of BPER Banca's long-term and short-term issuer ratings and Senior Debt ratings from Stable to Positive. "This positive rating action rewards the increasing ability to generate profitability, improved operational efficiency and a lower cost of credit," as the company explained in a note.

Nexi -- up 1.7 percent -- announced Monday that between June 10 and June 14 it took over 4.8 million of its own ordinary shares at an average price of EUR6.5.9439 and a total value of EUR28.5 million. Thus, the company holds 14.2 million treasury shares equal to 1.1 percent of the share capital.

On the MidCap, Maire Tecnimont advances 2.6 percent to EUR7.12 per share, rearing its head after three sessions in bearish balance.

Webuild - in the green by 0.7 percent - reported that between June 10 and June 14 it bought back 755,000 of its own shares for a total value of EUR1.5 million.

OVS's buyback program continues, rising 1.7% to EUR2.69 per share. The company bought back its own ordinary shares last week for a total value of EUR2.3 million.

On the Small-Cap, purchases on Fidia, which goes up 5.1% repricing to EUR0.70 per share.

Sogefi - in the green by 2.8% - reported that the board of directors has resolved to propose to the July 18 shareholders' meeting to distribute an extraordinary unit dividend of EUR0.923, gross of withholding taxes, for each of the outstanding shares with the exclusion of treasury shares held at the record date, for a total estimated amount of EUR110 million.

Zucchi - flat at EUR2.00 - announced Monday that it reported first-quarter profit of EUR1.2 million from EUR1.9 million in the same period of 2023. As of March 31, consolidated sales stood at EUR29.3 million from EUR33.3 million in 2023.

Among the negative notes, EPH is giving up 4.4 percent, following up on the double-digit decline in the eve.

Among SMEs, boost on Elsa Solutions, which advances 8.7 percent on rebound after eight sessions closed among the bearish.

ErreDue - flat at EUR9.85 - announced Tuesday that it has signed a new agreement with a Dutch company - active in the development of hydrogen and electric solutions for vehicles to build a 1.5 MW plant. The value of the supply is about EUR2 million.

Caribbean Company - in the green by 8.4 percent - reported a loss for 2023, reporting a negative EUR2.9 million from adjusted net income of EUR2.0 million in 2022. Revenues for the period stood at EUR52.8 million from EUR49.7 million as of Dec. 31, 2022.

In New York overnight Europe, the Dow rallied 0.4 percent, the Nasdaq closed ahead 1.0 percent, and the S&P 500 rallied 0.8 percent.

Among Asian exchanges, the Nikkei advanced 1.0 percent, the Shanghai Composite closed plus 0.5 percent, while the Hang Seng trades just above parity.

Among currencies, the euro changed hands at USD1.0725 from USD1.0718 in Monday's European stock close while the pound was worth USD1.2679 from USD1.2684 on Monday evening.

Among commodities, Brent crude is trading at USD84.22 per barrel from USD83.50 per barrel at Monday's close. Gold, on the other hand, trades at USD2,315.76 an ounce from USD2,312.84 on Monday evening.

Tuesday's macroeconomic calendar includes, at 1100 CEST the ZEW index of sentiment on the German economy and that on the Eurozone, along with the general consumer price index for the euro area.

At 1430 CEST, from the US, retail sales are expected followed at 1515 CEST by industrial and manufacturing production.

No special events are expected in the Piazza Affari.

By Maurizio Carta, Alliance News reporter

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