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Germany's DAX Index Ends Week Higher; Deutsche Börse Gains

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German equities finished the week on an upbeat note, with the blue-chip DAX index 2.27% higher at Friday's close, as markets digested signals of potential diplomatic progress in the Middle East.

Geopolitical tensions showed signs of cooling as a 10-day ceasefire between Lebanon and Israel took hold Thursday. Investors also responded positively to US President Donald Trump saying they are "very close" to reaching an agreement with Iran, adding that talks may resume over the weekend.

On this side of the Atlantic, the euro area recorded a trade surplus of 11.5 billion euros in February, following a revised trade deficit of 1 billion euros a month ago. Eurostat reported that exports of goods to the rest of the world declined by 6.7% year-over-year to 232.4 billion euros, while imports saw a 2.2% reduction, settling at 220.9 billion euros.

On the corporate side, Deutsche Börse (DB1.F) added 0.62%, as BofA Global Research upgraded its rating and price objective, citing the German exchange operator's solid market positioning amid current uncertainties.

"We upgrade Deutsche Borse (DB1) to Buy from Neutral with a new [price objective] of EUR300 (ADR $35.39) as we think it is best positioned among European exchanges in the current environment for greater volumes and NII on higher rates and cash balances. Q126 volumes are up double-digit % YoY in cash equities, fixed income derivatives and particularly commodities given energy disruption caused by the Middle East conflict, which has potential to persist. Accordingly, we raise cash EPS 6-7% and are 2-6% above Visible Alpha consensus. Our 2026 and 2028 forecasts now assume DB1's targets are met despite IMS headwinds. We see further EPS upside from the Allfunds (ALLFG) deal if approved (not in our estimates)," the research firm wrote.

Meanwhile, German technology group Siemens (SIE.F) plans to seek investor approval for the spinoff of medical technology company Siemens Healthineers (SHL.F) at its annual general meeting in February 2027. As part of the deconsolidation strategy, Siemens Healthineers shares will be distributed directly to existing Siemens shareholders. Siemens gained 3.36%, while Siemens Healthineers was up 1.46% at closing.

"The slower pace of the SHL spin-off will be disappointing to some investors, though was always a risk given the tight EGM timeframe. We note the longer-term business simplification story is clearly unchanged (and we would expect continued incremental SHL sell-downs on the market over time, in line with prior company comments)," analysts at RBC Capital Markets said in a quick-take note.

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Asia Markets

US Equity Indexes Rise After Israel-Lebanon Ceasefire Deal Injects Optimism in Middle East Diplomacy

US equity indexes rose on Thursday after an agreement for a 10-day ceasefire between Israel and Lebanon removed a major obstacle to Middle East diplomacy in finding a lasting Iran peace deal.Crude oil futures, however, remained higher as the US warned Iran of military action should it fail to reach a deal in a potential second round of peace talks in Pakistan.The Nasdaq Composite rose 0.4% to 24,102.70, with the S&P 500 up 0.3% to 7,041.28, and the Dow Jones Industrial Average higher by 0.2% to 48,58.2. Energy, real estate, and technology led the gainers. Health care was the worst performer.President Trump said the US might hold discussions with Iran this weekend, The Wall Street Journal reported. "We're very close to making a deal," the president told reporters outside the White House, according to the WSJ. Trump said he wasn't sure the current two-week ceasefire in the war would need to be extended, according to the report.Earlier on Thursday, Trump said on Truth Social that Lebanon and Israel have agreed to a 10-day ceasefire starting 5 pm ET. Lebanese Prime Minister Nawaf Salam said he welcomed the decision. In a follow-up social media post on Thursday, Trump said he plans to invite the Lebanese President, Joseph Aoun, and Israel's Prime Minister Benjamin Netanyahu to the White House for talks.Meanwhile, US Defense Secretary Pete Hegseth said Thursday that the naval blockade of Iran is an example of "polite" behavior during the ongoing ceasefire, and US forces are ready to strike power plants and the energy industry in the country, if ordered, according to a report from Reuters.Iranian officials and Pakistan's army chief, Asim Munir, are said to have met in Tehran on Thursday to discuss messages between Tehran and Washington, according to a CNN report. The White House expressed optimism about reaching a deal, saying the second round of talks would likely be held in Pakistan.The CBOE Volatility Index fell 1.5% to 17.91, after trading as high as 19.09 earlier in the session.West Texas Intermediate crude oil futures rose 2.3% to $93.56, and Brent crude futures jumped 3.3% to $98.20.US Treasury yields traded mixed, with the 10-year up 3.8 basis points to 4.32%.In precious metals, gold futures fell 0.2%% to $4,811.9 and silver futures declined 1.2% to $78.66.In economic news, US initial jobless claims fell to 207,000 in the week ended April 11 from a downwardly revised 218,000 in the previous week, compared with expectations for a smaller decrease to 213,000 in a survey of analysts compiled by Bloomberg."The conflict in Iran is unlikely to cause significant disruptions in the US labor market," Thomas Simons, Chief Economist at Jefferies, said in a note. "There are many vulnerable points in the global economy that are at risk in the near-term due to potential shortages of all sorts of commodities, but for better or worse, the US economy is likely going to be the most insulated in the world."US industrial production fell by 0.5% in March, compared with expectations for a 0.1% increase in a Bloomberg-compiled survey, and following an upwardly revised 0.7% increase in February.In company news, Charles Schwab (SCHW) shares dropped 7.6% intraday, the steepest decline on the SP 500, after the company reported Q1 net revenue below analysts' expectations.Boeing (BA) is ramping up its hiring, reaching about 100 to 140 factory workers a week, in a bid to replace retiring workers and support increasing production rates, Reuters reported Thursday, citing an interview with a union leader. Shares of the aircraft manufacturer dropped 2.3% intraday, the Dow's worst performer.

Dow JonesNasdaq CompositeS&P 500$BA$SCHW
Asia Markets

US Equity Indexes Mixed Following Israel-Lebanon Ceasefire Agreement

US equity indexes were mixed in midday trading on Thursday after Israel and Lebanon agreed to a 10-day ceasefire, removing an obstacle to diplomacy in the Middle East for extending the Iran truce deal.The Nasdaq Composite rose 0.1% to 24,046.2, with the S&P 500 up less than 0.1% to 7,024.3, and the Dow Jones Industrial Average steady at 48,454.77. All three gauges traded higher earlier in the session. Energy and technology led the gainers. Health care was the worst performer.President Donald Trump said Thursday on Truth Social that Lebanon and Israel have agreed to a 10-day ceasefire starting 5 pm ET. Lebanese Prime Minister Nawaf Salam said he welcomed the announcement. Following the announcement of a two-week truce between Iran and the US on April 7, Israel continued bombing Iranian proxy groups in Lebanon - a move that Tehran saw as a violation of the ceasefire agreement with the US.Meanwhile, Iranian officials and Pakistan's army chief Asim Munir are meeting in Tehran on Thursday to discuss messages between Tehran and Washington, according to a report from CNN. The White House has expressed optimism about reaching a deal, saying the second round of talks would likely be held in Pakistan.US Defense Secretary Pete Hegseth said Thursday that the naval blockade of Iran is an example of "polite" behavior during the ongoing ceasefire, and US forces are ready to strike power plants and the energy industry in the country, if ordered, according to a report from Reuters.West Texas Intermediate crude oil futures rose 3.6% to $94.61, and Brent crude futures jumped 4.8% to $99.52.In precious metals, gold futures fell 0.2%% to $4,812.20 and silver futures declined 1.2% to $78.71.US Treasury yields traded mixed, with the 10-year up 3.4 basis points to 4.31%.In company news, Charles Schwab (SCHW) shares dropped 5.8% intraday, among the steepest decliners in the SP 500, after the company reported Q1 net revenue below analysts' expectations.Boeing (BA) is ramping up its hiring, reaching about 100 to 140 factory workers a week, in a bid to replace retiring workers and support increasing production rates, Reuters reported Thursday, citing an interview with a union leader. Shares of the aircraft manufacturer dropped 3% intraday, the Dow's worst performer.In economic news, US initial jobless claims fell to a level of 207,000 in the week ended April 11 from a downwardly revised 218,000 level in the previous week, compared with expectations for a smaller decrease to 213,000 in a survey of analysts compiled by Bloomberg.US industrial production fell by 0.5% in March, compared with expectations for a 0.1% increase in a Bloomberg-compiled survey, and following an upwardly revised 0.7% increase in February.The Philadelphia Federal Reserve's monthly manufacturing index rose further to 26.7 in April after increasing to 18.1 in March, compared with expectations for a decline to a reading of 10 in a survey compiled by Bloomberg.The New York Federal Reserve's services index improved to minus 14.0 in April from minus 22.6 in March, compared with a smaller expected increase to a reading of minus 20.0 in a survey compiled by Bloomberg. The index is the first services sector reading for April and suggests a slower pace of contraction.

Dow JonesNasdaq CompositeS&P 500$BA$SCHW
Asia Markets

Exchange-Traded Funds Mixed, US Equities Rise After Midday

Broad Market IndicatorsBroad-market exchange-traded funds IWM was softer while IVV gained. Actively traded Invesco QQQ Trust (QQQ) added 0.5%.US equity indexes were higher after midday Thursday after Israel and Lebanon agreed to a 10-day ceasefire, removing an obstacle to diplomacy in works to extend the Iran truce deal.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each gained about 1.6%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) was up 0.9%; iShares US Technology ETF (IYW) rose 0.7%, and iShares Expanded Tech Sector ETF (IGM) added 0.8%.The State Street SPDR S&P Semiconductor (XSD) climbed 2%, and iShares Semiconductor (SOXX) was up 0.9%.FinancialThe State Street Financial Select Sector SPDR (XLF) slipped 0.1%. Direxion Daily Financial Bull 3X Shares (FAS) declined 0.4%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), climbed 0.3%.CommoditiesCrude oil fell 0.8%, and the United States Oil Fund (USO) advanced 3.8%. Natural gas rose 1.3%, and the United States Natural Gas Fund (UNG) added 1.2%.Gold on Comex eased 0.2%, and the State Street SPDR Gold Shares (GLD) fell 0.1%. Silver shed 1.2%, and iShares Silver Trust (SLV) dipped 1%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) gained 0.2%. The Vanguard Consumer Staples ETF (VDC) added 0.1%, and iShares Dow Jones US Consumer Goods (IYK) was 0.2% higher.The State Street Consumer Discretionary Select Sector SPDR (XLY) eased 0.4%. VanEck Retail ETF (RTH) was flat, while the State Street SPDR S&P Retail (XRT) added 0.8%.Health CareThe State Street Health Care Select Sector SPDR (XLV) fell 0.7%, iShares US Healthcare (IYH) declined 0.8%, and Vanguard Health Care ETF (VHT) was 0.7% lower. IShares Biotechnology ETF (IBB) shed 0.9%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) lost 0.5%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) also declined.CryptocurrencyIn midday activity, bitcoin (BTC-USD) fell 0.9%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) slipped 1%, ProShares Ether ETF (EETH) eased 1.7%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was down 0.9%.

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