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Germany's DAX Index Retreats; SAP Surges on Higher Q1 Earnings

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Germany's blue-chip DAX index closed Friday lower by 0.11%, as investors weighed the stalled US-Iran peace talks against the latest round of corporate earnings and trading updates.

As the Strait of Hormuz remains closed, tensions linger between Washington and Tehran, with no signs of further talks on the horizon. US President Donald Trump said he is willing to wait for an "everlasting" peace deal, even as he authorized the US Navy to fire on mine-laying boats in the embattled waterway.

Against this backdrop, the ifo Institute's business climate indicator fell to 84.4 points in April 2026 from the revised 86.3 points earlier, below the consensus estimate of 85.7 points on Investing.com. The latest reading marked the index's lowest level since May 2020, with both the current situation index and expectations indicator falling from a month ago and missing market expectations.

"The war in the Middle East and soaring energy prices have again exposed the fact that Germany is one of Europe's largest net importers of energy. ... With the war in the Middle East now gradually shifting from a pure energy price shock towards an energy supply and broader supply chain shock, the German economy is once again at the centre of an exogenous, global, disruption," ING said. "All of this said, even if sentiment is suffering enormous setbacks right now and fears of another year of stagnation have returned, it should be clear that the planned investments in defence and infrastructure are still on track and should support the economy this year and beyond. The fiscal impulse is real, it just needs time to reach the real economy."

On the corporate front, SAP (SAP.F) gained 4.68%, rising to the top of the blue-chip index, after reporting an increase in first-quarter earnings on robust cloud business performance, with total revenue up 6% year over year to 9.56 billion euros. The German software company maintained its full-year 2026 forecasts, including 23% to 25% cloud revenue growth at constant currencies, while noting the outlook remains contingent on the de-escalation of the Middle East conflict.

Meanwhile, BofA Global Research upgraded its price objective and earnings estimates for Siemens Energy (ENR.F) to account for the company's revised fiscal 2026 outlook. The German energy company now projects revenue growth between 14% and 16%, improving upon its previous 11% to 13% estimate, among others.

"We raise our 2026/27 adj EBITA estimates 8/12% after ENR's guide upgrade yesterday (+10/16% vs consensus) and lift our [free cash flow] estimates 40/11% too (+42/37% vs consensus). As a result, we raise our [price objective] to EUR250 from EUR220. Reiterate Buy," the research firm wrote. Siemens Energy was up 2.64% at the end of the last trading day of the week.

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US Equity Indexes Drop as Growth Sectors Dampen Sentiment, Hormuz Deadlock Continues

US equity indexes fell as technology and consumer discretionary stocks weighed on investor sentiment, which remains frail as the standoff over the Strait of Hormuz, the choke-point for about a fifth of global crude oil flows, persists.The Nasdaq Composite fell 0.9% to 24,438.50, with the Dow Jones Industrial Average down 0.4% to 49,310.32, and the S&P 500 lower by 0.4% to 7,108.40 on Thursday. Utilities and industrials led the gainers.Shares of IBM (IBM) slid 8.3%, among the steepest decliners on the Dow, following Q1 results. Software growth decelerated to 8% in constant currency from 11% in Q4 and 9% in Q3, a "potential red flag for the bears," CFRA said in a note.Tesla (TSLA) slid 3.6% after the firm issued higher-than-expected 2026 capital expenditure guidance. TechCrunch reported the group is planning to spend $25 billion, compared with $8.5 billion in 2025.ServiceNow (NOW) reported strong Q1 results, but softer organic revenue trends and a slightly weaker margin outlook weighed on the overall forecast, Oppenheimer said in a note. Shares of ServiceNow sank 18%, the worst performer on the S&P 500.Texas Instruments (TXN) soared 19%, among the top outperformers on the S&P 500 and the Nasdaq, after the company posted higher Q1 earnings and sales and set out Q2 guidance above consensus.In geopolitical developments, President Donald Trump ordered the US Navy to "shoot and kill" any boat that is laying mines in Hormuz, according to a Truth Social post on Thursday. On the same day, Iran flaunted its tightened grip over Hormuz with a video of commandos storming a cargo ship named MSC Francesca, Reuters reported.The United States and Iran remain at an impasse, with Tehran refusing to negotiate a peace deal as long as the US Navy continues to blockade its ports and Washington refuses to lift the siege. Trump said the pressure is on Iran to reach a deal ending the war, claiming he has "all the time in the world," CNN reported.Iran "had made the lifting of the US blockade a precondition for the resumption of negotiations," Helima Croft, head of global commodity strategy at RBC Capital Markets, said in a note. "President Trump, for his part, has indicated that the ceasefire will remain in place for now, leaving the conflict in a no airstrike, minimal movement of ships, unsustainable equilibrium."West Texas Intermediate crude oil futures jumped 3.6% to $96.51, and Brent crude futures advanced 3.7% to $105.58.In precious metals, gold futures fell 1.1% to $4,703.3, and silver futures dropped 3.5% to $75.27 as higher crude oil prices tend to raise inflation concerns. Most US Treasury yields rose, reflecting a similar dynamic in the fixed-income complex in addition to the macroeconomic data. The 10-year yield jumped 3.1 basis points to 4.33%, and the two-year rate climbed 3.8 basis points to 3.83%.In US economic news, initial jobless claims rose to 214,000 in the week ended April 18 from an upwardly revised 208,000, compared with the 210,000 print expected in a Bloomberg-compiled survey.Meanwhile, the April flash reading of manufacturing conditions from S&P Global improved to a 47-month high of 54.0 from 52.3 in March, compared with the 52.5 anticipated in a Bloomberg-compiled poll.

Dow JonesNasdaq CompositeS&P 500$IBM$NOW$TSLA$TXN
Asia Markets

US Equity Indexes Decline as Corporate Earnings Weigh, Hormuz Standstill Continues

US equity indexes fell in midday trading on Thursday as investors evaluated quarterly earnings, and after Washington and Tehran remained deadlocked over a reopening of the Strait of Hormuz, the chokepoint for about a fifth of global crude oil flows.The Nasdaq Composite fell 0.9% to 24,443.5, with the Dow Jones Industrial Average down by 0.6% to 49,181.9. The S&P 500 was 0.5% lower at 7,098.8.Financials and technology led the decliners, while utilities and industrials were among the top gainers.Tesla (TSLA) shares dropped 3.8% after the electric vehicle manufacturer issued higher-than-expected 2026 capital expenditure guidance. TechCrunch reported the electric vehicle manufacturer is planning to spend $25 billion this year, compared with $8.5 billion in 2025.ServiceNow (NOW) reported strong Q1 results, but softer organic revenue trends and a slightly weaker margin outlook weighed on its overall forecast, Oppenheimer said in a note. Shares of ServiceNow sank 18.6%, the worst performer on the S&P 500.International Business Machines (IBM) fell 10%, the steepest decline on the Dow, following its quarterly results. Software growth decelerated to 8% in constant currency from 11% in Q4 and 9% in Q3, a "potential red flag for the bears," CFRA said in a note.Texas Instruments (TXN) shares were up nearly 19%, among the biggest outperformers on the S&P 500 and the Nasdaq, after the company posted higher Q1 earnings and revenue and set out Q2 guidance above consensus.United Rentals (URI) traded 22% higher, the top gainer on the S&P 500, after the company reported overnight higher Q1 adjusted earnings and revenue and lifted its 2026 sales guidance.President Donald Trump has ordered the US Navy to "shoot and kill" any boat that is laying mines in Hormuz, according to his Truth Social post on Thursday. On the same day, Iran flaunted its tightened grip over Hormuz with a video of commandos storming a cargo ship named MSC Francesca, Reuters reported.The United States and Iran remain at an impasse, with Tehran refusing to negotiate a peace deal as long as the US Navy continues to blockade its ports and Washington refuses to lift the siege. Mediators are trying to get the diplomatic process back on track, including arranging a possible meeting between warring parties as soon as Friday, The Wall Street Journal reported.West Texas Intermediate crude oil futures rose 2.8% to $92.13, and Brent crude futures advanced 1.7% to $103.63.In precious metals, gold futures were steady at $4,751.5, and silver futures dropped 2% to $76.44.In economic news, US initial jobless claims rose to 214,000 in the week ended April 18 from an upwardly revised 208,000, compared with the 210,000 print expected in a Bloomberg-compiled survey.Meanwhile, the April flash reading of manufacturing conditions from S&P Global improved to a 47-month high of 54.0 from 52.3 in March, compared with the 52.5 anticipated in a Bloomberg-compiled poll.US Treasury yields were mixed, with the 10-year increasing 4.3 basis points at 4.34% and the two-year adding 3.5 basis points at 3.83%.

Dow JonesNasdaq CompositeS&P 500$IBM$NOW$TSLA$TXN$URI
Asia Markets

Exchange-Traded Funds Lower as US Equities Fall After Midday

Broad Market IndicatorsBroad-market exchange-traded fund IWM and IVV were lower. Actively traded Invesco QQQ Trust (QQQ) eased 0.2%.US equity indexes fell in midday trading Thursday, as geopolitical risk ratcheted up in the Middle East and Tesla's (TSLA) capital expenditure guidance for this year tripled from a year ago.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each gained about 0.3%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) was down 0.7%; iShares US Technology ETF (IYW) and iShares Expanded Tech Sector ETF (IGM) each lost about 0.6%.The State Street SPDR S&P Semiconductor (XSD) rose 3%, and iShares Semiconductor (SOXX) was up 2.7%.FinancialThe State Street Financial Select Sector SPDR (XLF) shed 0.7%. Direxion Daily Financial Bull 3X Shares (FAS) declined 2.8%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), climbed up 2.8%.CommoditiesCrude oil rose 1.1%, and the United States Oil Fund (USO) gained 1.5%. Natural gas was up 1.0%, and the United States Natural Gas Fund (UNG) dropped 4.5%.Gold on Comex slipped 0.2%, and the State Street SPDR Gold Shares (GLD) fell 0.2%. Silver declined 2.2%, and iShares Silver Trust (SLV) was down 1.7%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) rose 1.6%. The Vanguard Consumer Staples ETF (VDC) gained 1.4%, and iShares Dow Jones US Consumer Goods (IYK) was 1.7% higher.The State Street Consumer Discretionary Select Sector SPDR (XLY) dipped 0.2%. VanEck Retail ETF (RTH) rose 0.3%, while the State Street SPDR S&P Retail (XRT) fell 0.9%.Health CareThe State Street Health Care Select Sector SPDR (XLV) fell 0.3%, iShares US Healthcare (IYH) shed 0.5%, and Vanguard Health Care ETF (VHT) was 0.5% lower. IShares Biotechnology ETF (IBB) dipped 1.1%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) rose 2.1%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) also advanced.CryptocurrencyIn midday activity, bitcoin (BTC-USD) fell 0.9%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) dipped 0.7%, ProShares Ether ETF (EETH) lost 2.8%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was down 1.1%.

Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH