2025.09.0916:37:01UTC+00Italian Stocks Jump on Banking Consolidation

The FTSE MIB index climbed by 0.7% to reach 42,008 on Tuesday, leading the way among European indices, thanks primarily to strong performances from major banks. Investors are reevaluating the future of lending activities in light of a more consolidated banking sector. Notably, Banca Monte dei Paschi di Siena experienced a significant surge of 6.3% following its acquisition of 62.3% of Mediobanca's capital, marking a €16 billion takeover that was previously resisted by Mediobanca. This move establishes the third-largest lender in Italy. Simultaneously, BPER Banca saw a rise of 2.4%, and Banco BPM increased by 2.1%, as market analysts considered Credit Agricole's interest in acquiring a portion of the bank. Regarding monetary policy, Italian government bonds (BTPs) remained stable in anticipation of the European Central Bank's (ECB) expected decision to maintain current rates this week. This stability provided additional support for lenders, as bond-market pressures were largely concentrated in France due to ongoing political unrest.