The FTSE MIB edged up 0.3% to 52,720 on Tuesday, as banking mergers remained in focus while sentiment toward AI overspending improved. Prysmian (2.9%) and STMicroelectronics (0.8%) rebounded amid renewed optimism and ahead of Nvidia’s earnings. Stellantis added 1.4% as Canada imposed retaliatory tariffs on several US goods. Banking consolidation remained in focus, with Banco BPM’s (-0.5%) board reaching a unanimous decision regarding the aquisition offer from Banca MPS (0.5%), although a formal statement was still awaited. Intesa Sanpaolo (0.3%) will decide on approval for a capital increase to finance its takeover bid for MPS in September, while the Italian state said it would not sell its 4.8% stake on MPS. The Generali (0.5%) board is also expected to meet on Thursday. Luxury stocks underperformed amid profit-taking across the sector, with Moncler falling 2.2%. Eni (-1.2%) remained under pressure as Italy considers a tax on windfall energy profits.