The MIB index started the week yesterday with a gain of 1.2%. Today’s open gets bullish sentiment from quarterly earnings for Unicredit and MPS.

Unicredit saw quarterly profits rise to €2.6 billion and Monte Paschi’s profits increased to 333 million. The rise in profits for Unicredit represents a 24% increase over the same period from 2023.

First quarter EPS for Italy’s second largest bank also showed a jump higher, gaining 41.8% over the same period from last year. While revenue rose by 7% to €6.3 billion, meaning the extra profits come from greater efficiency in operations.

The bank has also maintained its commitment to distribute approximately 40% of excess capital in dividends. Stating that dividends for FY 2025 and 2026 will exceed distributions for FY 2024.

For MPS the first quarter results show an increase in profits of 41.2% over the same period in 2023. The number is higher by €281 million than the consensus forecast by analysts. Gross revenue was also up for Q1 by 15.2% for a total of €1.013 billion.

The FTSE MIB is up 1.06% on the day, as traders also see a greater likelihood of lower rates sooner from the ECB. This sentiment is a spillover from the US, where the stock market is also expecting the FED to act sooner than later.

EU Construction PMI was released at 41.9, lower than the forecast of 43.8, and lower still than last month’s figure at 42.4. Later on, we have EU Retail Sales, where expectations are for an increase of 0.6% MoM, and a smaller decline YoY of -0.3% from last month’s data at -0.7%