The FTSE MIB gained 0.4% to close at 42,725 on Tuesday, defying global caution over a possible US government shutdown that could delay Friday’s jobs report and complicate the Fed outlook. ECB President Lagarde said rates are likely to stay on hold this year as inflation picked up across Germany, France and Spain, while Italian inflation remained stable at 1.6% in September. Italian banks mostly advanced, with Unicredit up 1.5% and Intesa Sanpaolo 1%. Azimut jumped 4% after Mediobanca Research raised its price target to €40 with an outperform rating, ahead of earnings on October 30. In contrast, Banca Monte dei Paschi lost 0.8% and Mediobanca slumped 6.7% as investors await the shortlist of candidates to lead the Milan-based bank.