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DAX Index Blinks Red as German Economic Sentiment Falls

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German equities fell on Tuesday, with the blue-chip DAX index ending the trading session 0.60% in the red, as the market digested the latest economic sentiment survey for the eurozone's biggest economy and updates regarding potential US-Iran truce talks.

The ZEW economic sentiment indicator for Germany tumbled to -17.2 points in April from March's -0.5 point, missing the consensus estimate of -6.7 points. The current situation index also fell by -10.8 points to -73.7 points, slightly behind the expected -70 points.

"Economic expectations are slipping into negative territory. The economic consequences of the Iran war for the German economy go far beyond price increases: Businesses are concerned about long-term shortages of energy supply, and this discourages investment and weakens the effect of government stimuli," ZEW President Achim Wambach said.

Speaking of the Middle East conflict, Reuters reported, citing a Pakistani source, that momentum is building for talks to resume on Wednesday between the US and Iran, with US Vice President JD Vance expected in Islamabad. The news outlet noted comments from Tehran stating it was "positively reviewing" participation while continuing to demand the recognition of its right to enrich uranium and an end to the naval blockade of its ports, among other conditions.

In corporate news, Beiersdorf (BEI.F) was one of the blue-chip index's top losers, falling 2.97%, after posting lower-than-expected first-quarter sales amid headwinds across its core brand and luxury portfolio. The German personal care products manufacturer's sales for the three months ended March 31 decreased by 4.6% on an organic basis to 2.48 billion euros, compared with FactSet-compiled consensus of 2.56 billion euros.

Meanwhile, Berenberg forecasts a "surprisingly good, if volatile, 2026" for BASF (BAS.F), though it cautions that this "overdue good fortune" is already baked into the share price. Consequently, the research firm maintained its hold rating while nudging its price target up to 51 euros from 48 euros.

"This report is the first time in years where we have substantially raised earnings forecasts for BASF. After a decade of struggling to adapt to oversupply in the chemicals sector, the most substantive pieces of news over the last six months have all been positive. Against the backdrop of domestic German stimulus, shares have responded well to: i) potential political relief on carbon taxation and select anti-dumping investigations; and ii) increases in chemicals prices caused by Iran-conflict-induced feedstock shortages at Asian peers. We are unsure of the longevity of ii, but the self-help measures, including the sale of coatings for EUR8.7bn (13x EV/EBITDA), have left the company quite well-placed to enjoy the upswing," Berenberg said. The German chemicals company gained 1.12% at the end of the trading day.

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US Equity Indexes Mixed Amid Reports Iran Peace Talks to Enter Second Round

US equity indexes closed mixed on Monday, with the Dow Jones Industrial Average clawing back almost all of its intraday declines, amid speculation that a second round of Iran negotiations will go ahead in Pakistan.The Nasdaq Composite fell 0.3% to 24,404.39, with the S&P 500 down 0.2% to 7,109.14, after breaking records late last week when President Donald Trump talked up the likelihood of an Iran peace deal before the end of the current, two-week ceasefire on Tuesday. The Dow Jones Industrial Average was little changed at 49,442.56.Technology also turned the corner after trading lower earlier in the session. Communication services and healthcare led the decliners, while the materials sector was among the gainers.The US and Iran plan to hold peace talks in Islamabad this week, The Wall Street Journal reported Monday. While Iran hasn't publicly confirmed that it would send representatives to the meetings in Pakistan, it has told regional mediators that it would send a team to negotiate, people familiar with the matter told the WSJ.Pakistan is confident it can get Iran to attend talks with the US, Reuters reported Monday, citing a senior Pakistani government official. "We have received a positive signal from Iran," the source told Reuters, speaking on condition of anonymity. "Things are fluid, but we are trying [to make sure] that they should be here when we start the talks tomorrow or a day after."Iran is considering attending the peace talks, a senior Iranian official told Reuters on Monday, following moves by Islamabad to engineer an end to the US blockade of Iran's ports, a major hurdle for Tehran in rejoining peace efforts.Vice President JD Vance and top US officials are expected to depart Tuesday for Islamabad, Pakistan, CNN reported Monday. President Trump said he's not likely to extend the two-week ceasefire with Iran, increasing the urgency for negotiators to conclude a deal to end the war, Bloomberg reported Monday.Meanwhile, US home sellers outnumbered buyers by a near-record percentage in March, according to a Redfin survey. Home sellers exceeded buyers by an estimated 43% last month, compared with the largest gap on record of just above 45% in December. The March tally increased from 28% a year earlier.In US company news, Norwegian Cruise Line (NCLH) dropped 3.5%, among the worst performers on the S&P 500, amid the geopolitical developments in the Middle East.Meta Platforms (META) plans to initiate its planned layoffs for this year on May 20, and more cuts are expected later, Reuters reported, citing people familiar with the matter. The Facebook-owner's shares dropped 2.6%, among the worst performers on the Nasdaq.Alphabet's (GOOG, GOOGL) Google is negotiating with Marvell Technology (MRVL) to develop two new processors optimized for artificial intelligence inference tasks, The Information reported, citing two people with knowledge of the discussions. Shares of Marvell jumped 5.8%, the top gainer on the Nasdaq.

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Asia Markets

Exchange-Traded Funds Mixed as US Equities Fall After Midday

Broad Market IndicatorsBroad-market exchange-traded funds IWM and IVV were mixed, with the latter down 0.3%. Actively traded Invesco QQQ Trust (QQQ) shed 0.5%.US equity indexes slipped, while crude oil futures rose amid high-stakes Middle East diplomacy to bring Iran back to the negotiating table in Pakistan for a second round of peace talks.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each gained about 0.8%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) was down 0.3%; iShares US Technology ETF (IYW) fell 0.3%, and iShares Expanded Tech Sector ETF (IGM) declined 0.5%.The State Street SPDR S&P Semiconductor (XSD) added 1.1%, and iShares Semiconductor (SOXX) was down 0.2%.FinancialThe State Street Financial Select Sector SPDR (XLF) gained 0.2%. Direxion Daily Financial Bull 3X Shares (FAS) climbed up 0.3%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), declined 0.5%.CommoditiesCrude oil gained 6%, and the United States Oil Fund (USO) rose 5.2%. Natural gas rose 1.4%, and the United States Natural Gas Fund (UNG) added 0.6%.Gold on Comex slipped 1.3%, and the State Street SPDR Gold Shares (GLD) fell 1.2%. Silver declined 2.4%, and iShares Silver Trust (SLV) was down 2%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) was 0.1% lower. The Vanguard Consumer Staples ETF (VDC) was fractionally lower, and iShares Dow Jones US Consumer Goods (IYK) was down 0.3%.The State Street Consumer Discretionary Select Sector SPDR (XLY) was down 0.9%. VanEck Retail ETF (RTH) fell 0.4%, while the State Street SPDR S&P Retail (XRT) added 0.2%.Health CareThe State Street Health Care Select Sector SPDR (XLV) fell 0.5%, iShares US Healthcare (IYH) shed 0.5%, and Vanguard Health Care ETF (VHT) was 0.4% lower. IShares Biotechnology ETF (IBB) declined 0.4%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) was flat. Vanguard Industrials Index Fund (VIS) was up 0.1%, and iShares US Industrials (IYJ) was down 0.1%CryptocurrencyBitcoin (BTC-USD) gained 0.7%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) shed 2.7%, ProShares Ether ETF (EETH) dropped 5.2%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was down 3.1%.

Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH
Asia Markets

US Equity Indexes Decline as Fate of Iran Peace Talks Hangs in Balance

US equity indexes fell, while crude oil futures jumped amid high-stakes diplomacy aimed at bringing Iran back for a second round of talks in Pakistan.The Nasdaq Composite fell 0.5% to 24,344.1, with the S&P 500 down 0.3% to 7,101.5, after breaking records late last week when President Donald Trump talked up the likelihood of an Iran peace deal before the end of the current, two-week ceasefire on Tuesday. The Dow Jones Industrial Average fell 0.1% to 49,378.5.Consumer discretionary, communication services, and technology led decliners intraday. Energy and materials were among the biggest gainers.Risk appetite is "on the run" to start the fresh trading week, Derek Holt, head of capital markets economics at Scotiabank, said in a note on Monday. Trump, on Friday, appears to have "grossly overstated" progress toward an agreement with Iran, Holt added.Trump said the ceasefire with Iran ends "Wednesday evening Washington time," adding it's "highly unlikely" he would extend it if a deal is not reached before then, CNN reported Monday.Vice President JD Vance and top US officials are expected to depart Tuesday for Islamabad, Pakistan, ahead of a potential second round of talks with Iran, CNN reported. Iran is considering attending peace talks, a senior official from the Middle East nation told Reuters on Monday, following moves by Islamabad to end a US blockade of Tehran's ports, a major hurdle for the country under threat of widespread attack to rejoin peace efforts.The US president said in a Monday phone interview that the second round of talks with Iran is set to begin Tuesday, Bloomberg reported.West Texas Intermediate crude oil futures jumped 5% to $88.80, and Brent crude futures advanced 4.8% to $95.21.Most US Treasury yields rose, with the 10-year up 1.8 basis points to 4.26% and the two-year climbed 2.5 basis points to 3.73% as rising crude oil prices fueled inflation worries. Reflecting the potential upside risk to price pressures, gold futures declined 1.2% to $4,822.1 and silver futures dropped 2.5% to $79.78.In company news, Norwegian Cruise Line (NCLH) dropped 4.2% intraday, among the worst performers on the S&P 500, amid worsening geopolitical risk in the Middle East.Meta Platforms (META) plans to initiate its planned layoffs for this year on May 20, and more cuts are expected later, Reuters reported, citing people familiar with the matter. The Facebook-owner's shares dropped 2.3% intraday, among the worst performers on the Nasdaq.Alphabet's (GOOG, GOOGL) Google is negotiating with Marvell Technology (MRVL) to develop two new processors optimized for artificial intelligence inference tasks, The Information reported, citing two people with knowledge of the discussions. Shares of Marvell jumped 4% intraday, the top gainer on the Nasdaq.

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