The FTSE MIB dropped 1.6% to close at 41,728 on Tuesday, dragged down by banks in a broad European market selloff. Investors weighed new economic data and upcoming central bank meetings, with markets pricing in a Fed rate cut while the ECB holds a cautious stance. In Italy, industrial producer prices rose 0.5% month-on-month and 1.6% year-on-year in July, down from 2.4% in June. Eurozone inflation ticked up to 2.1% in August from 2.0% in July, matching expectations and staying near the ECB’s target. In corporate news, MPS (-3%) sweetened its takeover bid for Mediobanca (-2.7%) with an added €0.90 cash component per share, offering a 0.6% premium to Monday’s price and 11.4% to January levels. Unicredit (-2.2%) and Intesa Sanpaolo (-1.7%) also declined.