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German Blue-chip DAX Up; Henkel Gains on Q1 Beat

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German equities retreated on Thursday, as the market assessed developments related to a potential US-Iran peace deal alongside a fresh batch of corporate earnings and trading updates.

At closing, the blue-chip DAX was 1.02% in the red.

Reuters reported that Washington and Tehran are moving toward a temporary arrangement to halt the current conflict, with sources indicating the proposed framework provides a path to end the fighting but leaves core points of contention for future negotiation. However, research firm Rystad Energy cautioned that a deal's impact on the physical oil markets will be "slower and more conditional than futures prices are currently pricing in."

Meanwhile, back home, the German construction sector experienced its steepest contraction in over a year in April, with the decline primarily concentrated in housing amid war-related delivery delays, growing input price pressures, and weaker demand. The S&P Global Germany Construction PMI Total Activity Index plunged to a 13-month low of 42.1 from 48 in March.

In corporate updates, shares of Henkel (HEN.F) climbed to the top spot of the index at 4.20%, after its first-quarter organic sales beat and a reiterated full-year 2026 outlook. The German chemical and consumer goods company's group sales reached 4.95 billion euros, up 1.7% on an organic basis versus 1.1% market forecast. Management still expects organic sales to rise 1% to 3% for the year, while adjusted EPS is forecasted to grow in the low to high single-digit percentage range at constant currency.

"A solid Q1 growth, with both Consumer Brands and Adhesives Technologies growth coming in ahead of expectations. FY26 revenue growth and adj. operating profit margin guidance is reiterated, in line with consensus. Meanwhile, acquisitions/divestment are now guided to have a low-single-digit positive impact (from neutral to slightly positive previously), with three deals already successfully closed," RBC Capital Markets said in a quick-take report.

On the other hand, Siemens Healthineers (SHL.F) lost 4.72% and was one of the trading day's worst performers, after the German medical technology company lowered its fiscal 2026 guidance after a fiscal second-quarter earnings miss. The company now expects full-year revenue growth of 4.5% to 5%, down from its previous forecast of 5% to 6%. It also revised its adjusted basic EPS outlook to 2.20 euros to 2.30 euros, compared with earlier guidance of 2.20 euros to 2.40 euros.

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Exchange-Traded Funds Rise as US Equities Climb After Midday

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Swiss Market Index Rallies; Alcon, Logitech Shares Fall

The Swiss Market Index remained in the green on Wednesday, closing 1.77% higher, amid renewed hopes that the war in the Middle East will soon end.The US and Iran are said to be close to reaching an agreement on a one-page, 14-point memorandum of understanding to end the war, multiple media outlets including Axios and Reuters reported, citing sources. Meanwhile, in a post on the Truth Social platform, US President Donald Trump said if Iran "agrees to give what has been agreed to," the war and blockade will end, warning that the bombing would start "at a much higher level and intensity than it was before" if an agreement is not reached.Back home, Switzerland's private sector saw an improvement in April, with the KOF Business Situation Indicator rising to 18.3 from 16.6 in the previous month."The Business Situation Indicator for the manufacturing sector has fully recovered from its decline in March. The indicator is rising even more sharply in the project engineering sector and, more moderately, in the wholesale trade. Other services and the retail trade are also showing modest upturns," the KOF Swiss Economic Institute said. "However, the business outlook for the next six months is generally becoming more subdued - particularly in the hospitality sector, the wholesale trade and manufacturing."Over to corporates, Logitech International (LOGN.SW) fiscal 2026 net income rose on a yearly basis to $711.2 million, compared with $631.5 million, while net sales grew to $4.84 billion from $4.55 billion. The Swiss computer peripherals and software company's shares were down 0.40% at the end of the trading session.Swiss eye care products group Alcon (ALC.SW) also saw its shares fall 10.96% at closing as first-quarter net income plunged year over year to $189 million from $350 million. Operating income dropped 38% to $292 million, dented by costs associated with efficiency initiatives, impairment charges related to an intangible asset, and incremental tariffs. Net sales, on the other hand, increased over the period."Despite having a dominant position in its target markets, Alcon's investment case hinges on margin expansion, which entails execution risks. The ophthalmology market growth, though sticky to a material extent, remains capped at around a mid-single digit percentage. As a result, we expect Alcon to chase inorganic growth in the quarters/years ahead, especially considering the termination of proposed acquisition of STAAR Surgical in January 2026," analysts at AlphaValue/Baader Europe said in a note. "While we currently have a 12% upside on Alcon, one may want to wait for more of a correction in the share price for lucrative returns."

^SSMI$ALC.SW$LOGN.SW
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UK Shares Rally on Potential End to War; Smith & Nephew Shares Fall

London's FTSE 100 closed 2.15% higher on Wednesday on signs of a potential US-Iran deal to end the war, while expansion across the UK's private sector accelerated."Trump announced a temporary pause to 'Project Freedom,' a naval operation in the Strait of Hormuz, indicating a potential de-escalation. Oil prices declined following the announcement and continued to fall overnight, driven by expectations of progress toward a peace deal with Iran, as hinted by Trump. Trump's upcoming visit to China adds further complexity, given Beijing's close ties with Tehran and its economic reliance on oil transit through the strait," Danske Bank said.Back home, Britain's private sector output growth accelerated in April, indicating a moderate rise in manufacturing production and in services sector activity, data from S&P Global showed. The seasonally adjusted S&P Global UK PMI Composite Output Index rose to 52.6 from 50.3 in March. The flash estimate stood at 52."[This] improvement could easily prove short-lived as new business intakes remained subdued in comparison to the start of 2026," S&P Global Market Intelligence Economics Director Tim Moore said. "Survey respondents widely noted that the Middle East conflict and subsequent global supply chain disruptions had weighed heavily on business and consumer confidence."In corporate news, alcoholic beverage company Diageo (DGE.L) climbed 6.34% after affirming its fiscal 2026 guidance and logging a 2.3% yearly increase in net sales for the fiscal third quarter ended March 31 to $4.48 billion."While the spirits environment remains challenging, particularly in the US, Diageo's refreshed strategy and increased reinvestment should support a medium-term growth acceleration, we believe," BofA Global Research said. "The US remains a key headwind, with limited visibility on the timing and pace of a recovery, but performance elsewhere in the group is solid. We see further upside from accelerated deleveraging."On the downside, medical device manufacturer Smith & Nephew (SN.L) dropped 3.58% after launching a $500 million share repurchase program, maintaining its outlook for full-year 2026, and posting growth in first-quarter revenue to $1.50 billion from $1.41 billion."We expect investors to be incrementally reassured by the in-line revenue delivery in Q1 and the $500m share buyback programme. However, we do not see these results as materially de-risking 2026 guidance at this stage, and we continue to see potential downside to guidance in future periods," RBC Capital Markets said.

FTSE 100$DGE.L$SN.L