FX.co ★ Italian Shares Hit Over 3-Week High as Banks Rally

The FTSE MIB index rose by 1%, surpassing the 37,700 mark in early trading on Monday, marking its peak in over three weeks, thanks to impressive performances in banking stocks. Mediobanca announced a €6.3 billion bid for competitor Banca Generali, aiming to enhance its wealth management operations. Shares of Mediobanca increased by 1.5%, while Banca Generali surged by 8%. Major players UniCredit and Intesa Sanpaolo also experienced gains of 1.7% and 1.4%, respectively. The broader market sentiment was bolstered by indications of easing trade tensions between the U.S. and China. Although it remains uncertain whether formal trade negotiations between the two countries have started, President Donald Trump last week adopted a conciliatory tone towards China, and Beijing exempted some U.S. imports from its 125% tariffs. In the meantime, investors are looking forward to significant economic data later this week, particularly inflation reports from both the eurozone and the U.S.