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German DAX Index Blinks Green; Commerzbank Down After Rejecting Takeover Offer

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German equities rose on Monday, with the blue-chip DAX index closing 1.49% higher, as investors assessed the possibilities of renewed escalation in the Middle East alongside Commerzbank's (CBK.F) formal rejection of UniCredit's takeover bid.

On Sunday, US President Donald Trump urged Iran to fast-track a peace deal in a post on his social media platform Truth Social. Axios reported, citing two unnamed US officials, that Trump is planning to meet his top national security team on Tuesday to discuss potential military options.

Sentiment was further dampened by reports of a drone-induced fire at a nuclear site in the United Arab Emirates on Sunday and the interception of three drones by Saudi Arabian forces.

"For markets, the ongoing closure of the Strait of Hormuz and the prospect of a fresh escalation [have] pushed oil prices higher this morning. Brent crude is up +1.77% to a two-week high of $111.19 [per barrel]. And it's clear that investors are pricing in a more protracted conflict, as the 6-month Brent future is also up to $92.14/bbl this morning, which would be its highest closing level since the conflict began," Deutsche Bank Research wrote.

On the economic front, key updates coming later in the week include Germany's April producer price index data due on Wednesday, euro area preliminary S&P Global PMIs for May coming on Thursday, and Friday's GfK consumer confidence and ifo business climate survey results for the eurozone's largest economy.

In corporate news, Commerzbank (CBK.F) urged shareholders to reject Italian lender UniCredit's unsolicited exchange offer. It added that the implied value of the bid, offering 0.485 UniCredit shares per Commerzbank share, remains uncertain, with settlement not expected until 2027 and dependent on UniCredit's share performance. The German bank lost 1.48% at the end of the session.

Meanwhile, BofA Global said it is "more bullish" on Siemens Energy (ENR.F) following the publication of the company's fiscal second-quarter performance.

"We view last week's results as incrementally bullish, vs mixed investor feedback, reinforcing ENR as one of our top picks: (1) ENR's slot strategy implies mgmt are more bullish on Gas [original equipment] demand, (2) this is supported by datapoints incl. new backlog guidance, (3) extra EUR1bn buyback confirms proactive capital allocation. Stepping back, we think caution based on a possible 'peak' in Gas OE GW orders ignores backlog duration is still rising, and group orders will keep growing. Our EUR250 PO implies >45% upside potential. Maintain Buy," the research firm wrote. The German energy technology company was up 0.21%.

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UK Shares Start Week in Green as IMF Lifts UK Growth Outlook, Politics in Focus

London's FTSE 100 closed 1.26% higher on Monday as the International ​Monetary Fund increased its 2026 growth forecast for the UK to 1% from 0.8%, while investors also monitored political developments surrounding Prime Minister Keir Starmer."In the UK, Labour's decision to let [Mayor of Greater Manchester] Andy Burnham seek a return to parliament sharpens the leadership crisis facing Prime Minister Keir Starmer after heavy local election losses, which have already prompted intensified calls for him to resign," Danske Bank said."The risk is that a new, further left, prime minister pursues policies that further add to business costs, eroding profit margins and putting upward pressure on inflation," according to Berenberg. "Were a new prime minister to water down or abandon fiscal tightening at the same time, the [Bank of England] would have to set higher interest rates to prevent excess demand and inflation. The resulting combination of higher interest rates and lower profits would result in an inadequate rate of return for companies to invest and hurt the UK's long-term growth prospects."Meanwhile, the UK government and the Gulf Cooperation Council are reportedly nearing a free trade agreement after years of talks, according to London's Financial Times. In an emailed statement to, a UK government spokesperson said negotiations are continuing and remain a priority for the government.In corporate news, mining major Anglo American (AAL.L) dropped 1.36% after agreeing to sell its Australian steelmaking coal mines to Dhilmar for up to $3.88 billion in cash.Pharmaceutical giant GSK (GSK.L) gained 0.75% as Japan's health regulator expanded the eligible age range for its respiratory syncytial virus vaccine, Arexvy, to include at-risk patients aged 18 to 49.Investors will also look ahead this week to UK unemployment data for March on Tuesday, April inflation figures on Wednesday, S&P Global PMI data for May on Thursday, and retail sales numbers on Friday.

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Asia Markets

European Stocks Trend Higher in Monday Trading Despite Specter of Middle East War Reigniting

The European stock markets were tracking higher in Monday trading as oil prices and interest rates track higher, while hostilities in the Middle East appear close to reigniting after President Trump warned Iran that the "clock is ticking" on a peace deal.The Stoxx Europe was rising 0.4%, Germany's DAX was up 1.3%, the FTSE 100 was gaining 1.3%, France's CAC was increasing 0.3%, and the Swiss Market Index was edging 0.1% higher.And in corporate news, Novartis said Sunday its Pluvicto prostate cancer medication combined with standard care lowered the risk of disease progression by 58% compared to standard care alone in a clinical trial.The combination therapy achieved deeper reductions in prostate-specific antigen levels at 12, 24, and 48 weeks, while severe adverse events occurred in 50.7% of patients receiving the regimen compared to 43% in the control group, the company said.Shares of the Swiss pharmaceutical company were up close 1% in Zurich.AstraZeneca and Roche Diagnostics Asia Pacific have signed a three-year agreement to improve digital pathology capabilities in nine Asian markets, the companies said Monday.The collaboration will provide educational programs to expand the use of artificial intelligence in computational pathology and enhance biomarker testing for breast and lung tumors.Shares of the British pharmaceutical company were edging 0.3% higher in London.UBS has lost several senior Middle East wealth bankers less than two years after hiring them, Bloomberg News reported Monday, citing people familiar with the matter.The departures include Rana Al Emam and Ali Khunji, both of whom were hired from HSBC in 2024. Al Emam has joined Banco Santander, while Khunji moved to J. Safra Sarasin earlier this year, according to the report.UBS didn't immediately respond to' request for comment.Shares of the Swiss bank were climbing 1% in Zurich.Ryanair said it has contingency plans for an "armageddon" jet fuel scenario and warned weaker European carriers may not survive if high fuel prices persist, CNBC reported Monday.Chief Financial Officer Neil Sorahan said Ryanair has hedged 80% of its summer fuel needs and does not expect flight cancellations despite volatility tied to Middle East tensions and the Strait of Hormuz, according to the report.The Irish airline also reported fiscal 2026 earnings Monday that missed analyst forecasts, while revenue topped expectations.Shares of Ryanair were gaining close to 5% in Dublin.GSK's Arexvy respiratory syncytial virus vaccine has received an expanded approval in Japan to include adults as young as 18 years of age who are at increased risk of infection, the company said Monday.The vaccine was previously approved in that market for adults aged 60 and above and for at-risk adults aged 50 to 59.Shares of GSK were up 0.5% in London.

Asia Markets

European Equities Traded in the US as American Depositary Receipts Open Week Tracking Higher in Monday Trading

European equities traded in the US as American depositary receipts were heading higher late Monday morning, rising 0.88% to 1,825.10 on the S&P Europe Select ADR Index.From continental Europe, the gainers were led by biotech firm Evaxion (EVAX) and healthcare tech company Royal Philips (PHG), which rose 4.6% and 2.9% respectively. They were followed by internet advertising firm Criteo (CRTO) and biopharmaceutical company Grifols (GRFS), which were up 2.8% each.The decliners from continental Europe were led by biopharmaceutical company DBV Technologies (DBVT) and biotech firm BioNTech (BNTX), which dropped 3.2% and 2% respectively. They were followed by telecommunications company Nokia (NOK) and pharmaceutical company Ascendis Pharma (ASND), which were down 1.9% and 0.9% respectively.The gainers from the UK were led by biotech companies Autolus Therapeutics (AUTL) and Trinity Biotech (TRIB), which climbed 16% and 6.2% respectively. They were followed by communications company WPP (WPP) and educational publisher Pearson (PSO), which advanced 4.8% and 4.7% respectively.The decliners from the UK and Ireland were led by biopharmaceutical companies NuCana (NCNA) and Biodexa Pharmaceuticals (BDRX), which fell 8.3% and 3% respectively. They were followed by biopharmaceutical companies Amarin (AMRN) and Mereo BioPharma Group (MREO), which were off 2.1% and 1% respectively.

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