The FTSE MIB fell 0.8% to 52,618 on Wednesday, amid losses for banks and AI companies. STMicroelectronics dropped 2.8%, extending the previous session’s selling pressure, while Prysmian fell 0.8%. Financials also underperformed as Italian BTPs refrained from rebounding to the extent of US Treasuries after the US doubled its bond and note buyback. MPS fell 2% amid reports that it is considering potential takeover-defence options against Intesa’s(-1.4%) earlier bid, under which MPS’ insurance operations would be sold to Unipol (-2.6%), BPER Banca’s (-1.5%) largest shareholder. MPS CEO said the bank is also working on two potential share-swap offers for rival Banco BPM (-0.5%) and Generali-controlled (-1.4%) wealth manager Banca Generali. On the upside, Stellantis surged 5.9%, tracking gains across the European auto sector after the US president announced a three-day suspension of import tariffs on Canadian imports that were due to take effect today.