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German Stocks Fall as Interim US-Iran Ceasefire Deal Expires

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Germany's blue-chip DAX index retreated, closing Monday 0.27% lower, as the temporary US-Iran ceasefire agreement expired amid stalled negotiations.

Danske Bank noted that Brent crude traded above $88 per barrel by Monday morning as markets assessed weekend Israeli strikes on Lebanon and potential new US sanctions against Iran, alongside the expired interim deal. "Talks to reopen the Strait of Hormuz show little progress, though reported crude shipments by producers in the Middle East continued through the waterway and Iran-Oman talks appear to be progressing without US participation," the research firm wrote.

Amid a quiet day for major economic updates, investors are expected to focus on key data for the week, including the August ZEW survey due on Tuesday, the euro area's final July inflation print on Wednesday, Germany's July producer price index update on Thursday, and flash August PMIs on Friday.

On the corporate side, RWE (RWE.F) gained 0.71% as Deutsche Bank Research raised its price target to 65 euros from 63 euros, with a buy rating, following the German energy group's first-half earnings.

"RWE held a very positive results call last week, having pre-released results last month. The short term has upside from data centre deals and the commodity complex. The long term has many avenues to upside not currently considered in the guide," Deutsche Bank Research said. "The 2026 guidance now looks conservative and could be upgraded ahead of Q3 results. RWE is on a roll, with data centre deals expected over the next month."

Meanwhile, Deutsche Telekom (DTE.F) agreed to purchase Polish open-access fixed-network operator Fiberhost and retail broadband and TV provider Inea for an enterprise value of 1 billion euros. The German telecommunications company is buying the companies from Macquarie Asset Management-managed Macquarie European Infrastructure Fund 5 and other minor shareholders. The stock closed 0.87% in the red.

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Tadawul Shares End Sunday Higher; Multi Business Group Ticks Up

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US Equity Indexes Mixed This Week After Soft Inflation Prints, Slumping Retail Sales Set to Restrain Fed Policy Hawks

US equity indexes were mixed this week as easing inflation and a drop in retail sales boosted the odds for a monetary policy pause in September, while the Trump administration signaled a pivot toward maximum economic pain on Iran.* The S&P 500 closed at 7,785.76 on Friday versus 7,709.08 a week ago. The Nasdaq Composite stood at about 26,729.16, compared with 26,348.02 a week earlier, and the Dow Jones Industrial Average ended lower at 53,732.41, versus 53,885.02 at the end of last week.* Among firms with market capitalizations exceeding $200 billion each, three of the 10 worst performers were in the equal-weighted Dow, according to data compiled by Finviz. The leader among the Dow laggards was Cisco (CSCO), down 8% this week, as fiscal Q4 services revenue missed expectations and adjusted product margin declined.* Sandisk (SNDK) said it expects sales to grow in the mid-to-high teens from fiscal 2028 through fiscal 2030. Wells Fargo and RBC Capital Markets lifted price targets for the company. Shares soared 35% this week.* Across the three indexes, consumer cyclicals, basic materials, and communication services led underperformers while energy and technology topped the gainers.* Both headline and core consumer and wholesale price inflation rates declined from a year ago in July.* Retail sales slid unexpectedly in July, the most since May 2025, after rising in the previous month.* Following the inflation and retail sales data, the probability of the Federal Reserve extending its policy pause in September stood at 67% Friday, up from 55% a week ago, according to the CME FedWatch tool. The remaining 33% likelihood was for a 25-basis-point increase, down from 44% a week earlier.* Treasury Secretary Scott Bessent said the US plans to unveil measures on Iran next week that have "never been seen," CNN reported. US Secretary of Defense Pete Hegseth said the US can sustain its blockade against Iran "indefinitely," Al Jazeera, a Middle Eastern broadcaster, reported.

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Update: US Equity Indexes Fall After Retail Sales Drop Most in 14 Months, Crude Oil Rises as Iran Warned Against Economic Pain

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