European banks are the big winners this morning, led by the dodgy Italians. Intesa San Paolo led the Italian indices with a gain of more than 5%. The overall European bank index rose by nearly 3%. Spreads between German Bunds and Italian and French government bonds also narrowed in a sign of increasingly risk-friendliness. There’s no decisive news motivating the move, but the Trump State of the Union address, stronger economic data, and somewhat better readings for Angela Merkel’s CDU in German opinion polls all contributed.