FTSE MIB edges higher near 52,700 on Middle East and Italy banking focus

The FTSE MIB edged higher to around 52,700 on Monday, extending gains from the previous session, as investors monitored developments in the Middle East and Italy’s ongoing banking consolidation.

US-Iran tensions intensified after Washington struck Iranian missile launchers on Larak Island, while Tehran retaliated by targeting US military bases in Jordan.

Energy-related stocks advanced alongside crude prices, with oil major Eni gaining 1.5% and Tenaris, a major supplier of steel pipes for the oil and gas industry, rising more than 2%.

Domestically, banking stocks remained in focus as Intesa Sanpaolo prepared for a September 10 shareholder meeting on its MPS bid, while MPS continued to pursue its competing expansion plans involving Banco BPM and Banca Generali.

MPS rose 1%, while Intesa Sanpaolo and Unipol edged up more than 0.2% each.

For the month, the benchmark index is heading for a modest decline.