FRANKFURT: Europe’s STOXX 600 share index closed subdued but above session lows on Monday, as oil prices pared earlier gains following signs of a pause in attacks between Iran and Israel, while Italian lender Monte dei Paschi di Siena jumped after a takeover bid from rival Intesa Sanpaolo.
The pan-European STOXX 600 index ended 0.2 percent lower at 621.73 points, after hitting a two-week low earlier in the session.
Crude prices had climbed as much as 5 percent after renewed Israeli strikes on Iran and attacks on Lebanon dampened hopes for a quick end to the conflict. But gains later narrowed to about 1 percent after US President Donald Trump urged the two sides to “stop shooting”, and the announcement of a halt in attacks by Iran’s military helped steady sentiment.
Italy’s banking sector was the main corporate focus.
Monte dei Paschi di Siena (MPS) gained 13 percent after Intesa Sanpaolo, Italy’s biggest banking group, announced a €30.6 billion (USD35 billion) unsolicited cash-and-share bid to buy the lender, in what could be one of Italy’s biggest banking deals. Intesa slipped 1.4 percent.
“We would see the deal as positive for Intesa Sanpaolo in the longer term but see substantial uncertainty regarding execution,” said Suvi Platerink Kosonen, senior sector strategist at ING Bank.
Banco BPM has already proposed a merger with MPS, aimed at creating Italy’s second-largest domestic operator. Banco BPM shares were marginally higher. Kosonen said a BPM–MPS merger would leave Italy with three larger domestic banks, which would appeal to policymakers, while Intesa’s alternative could create a more diverse landscape with smaller players.
Technology stocks also supported the broader market as US tech names rebounded from a sharp selloff late last week.
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