FTSE MIB closes higher as defense stocks lead gains

The FTSE MIB rose 0.3% to 52,883 on Wednesday, lifted by prospects for higher defense spending and consolidation talks which continue to overshadow the banking sector.

Banco BPM rose 0.6% after its its board signaled that Banca MPS's (-0.3%) offer did not provide a premium for its shareholders, although no final has been announced.

Generali (1%) is due to convene its board on Thursday to consider MPS’s takeover bid for Banca Generali.

UniCredit gained 2.2% as Germany’s finance minister and CEO Andrea Orcel are set to meet next month to discuss Berlin’s position on the lender’s takeover bid for Commerzbank.

Utilities traded mixed, while defense stocks advanced, led by Fincantieri (2.2%), after the Italian government requested €8 billion from the EU’s SAFE defense funding program.

However, the government has faced pressure to use its fiscal room to soften the impact from rising energy costs linked to the Middle East conflict.