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European Stocks Close Mixed Monday Trading; Strait of Hormuz to Reopen Under US, Iran Peace Deal

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The European stock markets closed mixed in Monday trading, despite the announcement of a peace deal between the US and Iran that includes the reopening of the Strait of Hormuz this week.

The Stoxx Europe advanced 0.2%, Germany's DAX climbed 1%, the FTSE 100 fell 0.5%, France's CAC gained 0.5%, and the Swiss Market Index edged 0.1% lower.

And in corporate news, the European Commission said Monday it has approved a joint venture between TotalEnergies and Masdar focused on renewable energy projects in the Asia-Pacific region.

The Commission said the transaction does not raise competition concerns because its impact on the European Economic Area is expected to be limited.

Shares of the French oil and gas company fell close to 5% in Paris.

Shell's Sprng Energy Indian renewable power business could be acquired by Aditya Birla Group, which has emerged as the frontrunner for the unit, Bloomberg reported Monday, citing people familiar with the matter.

An agreement for the unit could be signed in the coming weeks, according to the report. Shell is seeking a valuation of around $1.8 billion for the unit, but terms could change, Bloomberg cited the sources as saying.

Shares of the British oil and gas major lost 4.4% in London.

Equinor said Monday it is advancing a fourth phase of development at the Johan Sverdrup field in the North Sea after new appraisal wells confirmed additional recoverable oil volumes in the area.

The discoveries at Tonjer and Geitungen are estimated at 20-30 million barrels of oil equivalent and will be developed through a subsea tieback to existing infrastructure at Norway's largest oil-producing field, it said.

Shares of the Norwegian petroleum refiner dropped 6.5% in Oslo.

Deutsche Bank and JPMorgan Chase will participate in Singapore's planned gold-clearing system, media outlets reported Monday.

The over-the-counter clearing mechanism, to be established by the Singapore Exchange by the end of 2026, is expected to support interbank gold trading during Asian hours beginning next year, according to the reports. Singapore is also planning to introduce central bank gold vaulting services by October and expand tax exemptions for eligible funds and family offices in physical precious metals, the reports said.

Shares of Deutsche Bank gained 4% in Frankfurt.

HSBC said all of its digital banking services in Hong Kong had resumed normal operations before 2 p.m. local time after some customers encountered issues accessing the bank's mobile app earlier in the day, Reuters reported Monday.

The lender said it resolved the issue and apologized for the disruption after some customers experienced difficulties accessing certain services, according to the report.

Meanwhile, HSBC is also undergoing a potential sale of its Singapore insurance division, with Allianz emerging as the top bidder, Bloomberg News reported Sunday, citing unnamed people familiar with the matter and a HSBC spokesperson.

HSBC did not immediately respond to' requests for comment.

Shares of HSBC increased 0.6% in London.

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Tadawul Shares Start Week Higher on US-Iran Peace Deal Hopes

Saudi Exchange-traded closed Sunday upbeat as the prospects of a US and Iran peace deal pushed the Tadawul All Share Index 0.57% firmly in the green.Investors are patiently waiting for updates regarding the signing of an interim deal that would end the conflict between the US and Iran. US President Donald Trump signaled that the memorandum of understanding would be signed on Sunday.However, Iranian Foreign Ministry spokesperson Esmaeil Baghaei stated that the peace framework will be signed "in the coming days." An undisclosed senior Iranian official said that the final draft of its deal reportedly includes the reopening of the Strait of Hormuz, oil sanction waivers, releasing frozen Iranian assets, as well as other nuclear clauses.Looking ahead to the week, the local economic calendar will mostly be empty except for the release of Saudi Arabia's inflation print for May on Monday. Market watchers will also look out for the Federal Reserve's interest rate decision and economic projections on Wednesday."In terms of Wednesday's FOMC meeting, we expect the Fed to leave monetary policy unchanged, but we do expect a statement that puts greater emphasis on the possibility of an interest rate rise," ING said in a note. "In the press conference, he will likely acknowledge that economic conditions do not justify rate cuts at this time. Nonetheless, he could reiterate his view that, in time, tech investment will boost US productivity, meaning faster growth without generating inflation. That would imply a lower neutral interest rate that justifies lower policy rates over the medium to longer term."Back at home and on the corporate front, Saudi Pharmaceutical Industries and Medical Appliances (SASE:2070), d/b/a Spimaco, shares ticked up 3.58% at closing as it agreed to boost its stake in Arabian Medical Products Manufacturing, or Enayah, to 63% for 45 million Saudi riyals.

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Asia Markets

US Stocks Gain This Week on Iran Deal Progress, Softer Rate Expectations

US equity indexes rose this week as Iran signaled that peace-deal terms with the US are in their final review, inflation data eased rate-increase expectations, and SpaceX (SPCX) shares jumped in their market debut.* The S&P 500 closed at 7,431.46 on Friday, up from 7,383.74 a week earlier. The Nasdaq Composite rose to 25,888.84, from 25,709.53, and the Dow Jones Industrial Average advanced to 51,202.26 from 50,866.78.* Iran is in the final stages of internal deliberations on a peace agreement with the US, Iranian Foreign Ministry spokesperson Esmaeil Baghaei said Friday, according to CNN. "Understanding has been reached on the majority of issues," he said.* US core producer prices rose less than expected in May from both April and a year earlier. Core consumer prices also came in softer than forecast on a monthly basis, while the annual reading matched expectations.* FedWatch data late Friday showed a 43% probability of a 25-basis-point rate increase in December, little changed from a week earlier. Odds for a September increase fell to 26% from 34%, and October odds dropped to 33% from 40%, indicating reduced expectations for additional increases in H2.* Markets see a near-certain chance the Fed will hold rates steady in June and a 92% probability of no change in July.* Space Exploration Technologies shares opened at $150 on Friday, topping the initial public offering price of $135. The stock closed up 19%.

Dow JonesNasdaq CompositeS&P 500$SPCX
Asia Markets

Exchange-Traded Funds Rise, US Equities Mixed After Midday

Broad Market IndicatorsBroad-market exchange-traded funds IWM and IVV were higher. Actively traded Invesco QQQ Trust (QQQ) added 0.7%.US equity indexes traded mixed amid conflicting reports on the terms of a draft deal between Iran and Washington to end the war in the Middle East and Space Exploration Technologies (SPCX) making history with its stock market debut.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each rose 1.1%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) climbed up 1.1%; iShares US Technology ETF (IYW) rose 0.9%, and iShares Expanded Tech Sector ETF (IGM) was up 1%.The State Street SPDR S&P Semiconductor (XSD) advanced 2.1%, and iShares Semiconductor (SOXX) was 2.3% higher.FinancialThe State Street Financial Select Sector SPDR (XLF) added 1.1%. Direxion Daily Financial Bull 3X Shares (FAS) climbed up 3.4%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), declined 3.3%.CommoditiesCrude oil shed 3.6%, and the United States Oil Fund (USO) fell 2%. Natural gas rose 1.3%, and the United States Natural Gas Fund (UNG) was up 1.5%.Gold on Comex gained 2.9%, and the State Street SPDR Gold Shares (GLD) rose 0.3%. Silver advanced 6.1%, and iShares Silver Trust (SLV) was up 0.7%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) rose 0.2%. The Vanguard Consumer Staples ETF (VDC) added less than 0.1%, and iShares Dow Jones US Consumer Goods (IYK) was up 0.3%.The State Street Consumer Discretionary Select Sector SPDR (XLY) was fractionally lower. VanEck Retail ETF (RTH) was 0.3% lower, and the State Street SPDR S&P Retail (XRT) rose 0.4%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) dipped 0.1%, iShares US Healthcare (IYH) fell 0.1%, and Vanguard Health Care ETF (VHT) rose fractionally. IShares Biotechnology ETF (IBB) climbed up 0.5%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) added 0.8%. Vanguard Industrials Index Fund (VIS) gained 0.7%, while iShares US Industrials (IYJ) rose 0.8%.CryptocurrencyIn midday activity, bitcoin (BTC-USD) was up 0.8%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) rose 0.8%, ProShares Ether ETF (EETH) fell 0.1%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was 0.3% higher.

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