Italian banks notch 2nd straight record close as rally extends

Italy's banking sector closed at a record high for the second consecutive day, with the FTSE Italia All Share Banks Index rising 0.29 percent.

The broader FTSE MIB index gained 0.25 percent, tracking a positive session across European bourses. Germany's DAX rose 0.20 percent to 25,117.05, France's CAC 40 added 0.18 percent and the UK's FTSE 100 edged up 0.01 percent to 10,507.

The bank sub-index's advance marks its second straight record closing high, extending a rally driven by higher net interest income expectations and consolidation optimism in the sector. Italian lenders have benefited from the European Central Bank's higher-for-longer rate stance, which has boosted lending margins.

The record run comes as European banking stocks broadly outperform, with the Stoxx Europe 600 Banks Index also trading near multi-year highs. Investors are watching second-quarter earnings due in the coming weeks for confirmation that margin expansion remains on track.

The rally in Italian financials unfolded against a mixed backdrop in global markets. Brent crude rose 3.5 percent to $78.66 a barrel after the US and Iran traded attacks in the Gulf, while gold slipped nearly 2 percent to $4,037 an ounce. US equities were mixed, with the S&P 500 falling 0.2 percent and the Nasdaq declining 0.8 percent, while the Dow Jones Industrial Average added 0.4 percent. The US 10-year Treasury yield moved higher as traders reassessed rate expectations.

This article is for informational purposes only and does not constitute investment advice.