FTSE MIB Holds Near Record Highs Amid Banking Consolidation Hopes

The FTSE MIB index in Milan has continued its resilience, holding near record highs around 53,800 points. The banking sector's consolidation narrative and luxury stocks' strength are driving investor interest.

Thursday's trading session saw the FTSE MIB open with positive momentum, gaining approximately 0.57% to trade at 53,750 points. This mirrors broader European strength, with Paris's CAC 40 advancing 0.65% and London's FTSE 100 rising 0.28%, while Frankfurt's DAX remained largely flat.

The Italian benchmark has posted a year-to-date gain of approximately 11.3%. The current trading range near 53,800 represents a significant recovery from the geopolitical shocks that weighed on markets earlier in the year.

The banking sector has emerged as the primary driver of the FTSE MIB's outperformance, with increasing focus on the domestic consolidation process. Banco BPM led the charge on Thursday, surging over 4% following the announcement of record half-year results and a revision upward of its 2026 profit targets.

Reports that the Italian government would maintain a neutral stance on banking consolidation have fuelled expectations Rome could sell its MPS stake before Intesa Sanpaolo's bid takes effect. The money market continues to price in a hawkish stance from the European Central Bank, with expectations still anchored to further rate hikes and a high probability of an initial move as early as the upcoming ECB meeting.