The FTSE MIB gained 0.1% to close at 42,060 on Wednesday, driven by banking sector merger news and ahead of the European Central Bank meeting. Banca Monte dei Paschi di Siena rose over 1% an reports that its takeover of Mediobanca would reach 80% owner of the latter, consolidating expectations that the acquisition will go through and create a third pole in the Italian banking sector, among Europe's most fragmented. Attention now turns to the ECB’s monetary policy decision on Thursday, with expectations pointing to no change in rates. Leonardo gained nearly 2.5% after Israeli attacks in Qatar and the takedown of Russian drones by Poland, a NATO member, lifted global defense stocks. Meanwwhile, Nexi plunged 9.4% after Barclays cut its price target from €4.50 to €4.10, confirming an underweight recommendation with roughly 20% further downside expected.