The FTSE MIB fell 1.3% to close at 42,504 on Tuesday amid sharp losses for heavyweight banks. On the corporate front, Banca Monte dei Paschi di Siena (-2.9%) completed its share swap, acquiring 62.3% of Mediobanca (-2.3%) and becoming the top shareholder in Assicurazioni Generali (-2.2%) with a 13.2% stake. Markets anticipate US monetary policy easing after fresh signs of labor market weakness. In Italy, Istat reported revised CPI data, inflation slowed to 1.6% in August, led by a sharper drop in energy prices (-4.8% vs -3.4% in July), while food inflation edged up to 3.8% from 3.7%. Eurozone industrial production rose 0.3% in July, beating forecasts of 0.2% after a 0.6% fall in June.