The FTSE MIB rose 2% to close at a record 51,497 on Friday, as banks and insurers extended their rally amid speculation over a potential bidding war for Banca Monte dei Paschi di Siena. Hopes that a deal for Monte Paschi could reignite broader mergers and acquisitions activity and accelerate sector consolidation boosted sentiment across Italy’s financial sector. Among the top performers, Mediobanca gained 4.6% and Monte Paschi added 3.9%, while peers UniCredit (+4.1%) and Intesa Sanpaolo (+4.3%) also advanced. STMicroelectronics climbed 4.5%, extending gains after BofA upgraded the stock from “neutral” to “buy” on Wednesday. Sentiment was further supported by reports that US President Donald Trump said a US-Iran deal is nearing completion and that planned strikes against Iran had been canceled. Oil prices declined on expectations of renewed supply flows, weighing on Eni, which fell 2.2%.