Italy: Stocks Extend Rebound.

The FTSE MIB index closed 1.1% higher at 44,310 on Tuesday, extending the rebound from the previous session and tracking the positive momentum for European stocks amid the lack of upside surprises to key inflation data. The Eurozone's inflation rate was under expectations for both headline and core gauges. Domestic consumer prices were also relatively contained in the period, raising hopes that the impact of the ongoing energy shock will be muted compared to that experienced by Italy in 2022. The developments eased concerns that energy bills will erode household spending and force the government to support businesses, supporting debt-ridden Italian bonds and lifting banks' equities. UniCredit, Intesa Sanpaolo, BPER, and BPM gained over 1.5%. In the meantime, Leonardo and Prysmian jumped over 4% as markets took advantage of their lower valuations following the selloff this month.