Natexis, the French investment bank, soared 7.1 per cent to €224.80 after FNCE, the national federation of Caisses d’Epargne savings banks, approved the proposed merger of its Ixis investment banking unit with Natexis. Regional banks own 65 per cent of Caisses d’Epargne so this was seen as significant progress.

If the merger proceeds, Caisse Nationale d’Epargne (CNCE) and the Banque Federale des Banques Populaires, the majority shareholder in Natexis, will each hold 34 per cent in the new entity Natixis, with at least 25 per cent of shares quoted on the Paris bourse.