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Swiss Stocks Slump as New Development in US-Iran War Overshadows GDP Print

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The Swiss Market Index started the week in the red, tumbling 1.75% on Monday's close, as reports of a new source of tensions between the US and Iran overshadowed the releases of the country's gross domestic product and retail sales.

Iranian negotiators will suspend talks and the exchange of documents with their US counterparts in protest of Israeli aggression in Lebanon, Bloomberg News reported, citing a statement carried by the semi-official Tasnim news agency. The suspension follows a fresh exchange of fire between Tehran and Washington over the weekend, even as the two sides had been indirectly negotiating terms of a draft deal that would extend their ceasefire agreement by 60 days.

Back home and in economic news, Switzerland's final gross domestic product, adjusted for sporting events, rose 0.4% in the first quarter, compared with the flash estimate of a 0.5% increase and the prior quarter's 0.2% rise. The State Secretariat for Economic Affairs attributed the growth to the industrial sector.

Meanwhile, Swiss retail sales inched up 0.1% month over month in April, following a revised 0.3% gain in March, data from the Federal Statistical Office showed. In other economic news, the procure.ch-UBS manufacturing PMI climbed to 57.3 in May from 54.5 in April, surpassing the consensus estimate of 54.

On the corporate front, Landis+Gyr Group (LAND.SW) confirmed its mid-term estimates through 2028, including a mid-single-digit revenue compound annual growth rate and adjusted EPS CAGR more than 5x the rate of revenue. The Swiss energy technology company was down 1.48%.

"With the introduction of our new business segments, we are well positioned to capitalize on significant growth opportunities across the evolving energy landscape. Supported by the strongest pipeline in our history and accelerating customer adoption of our technologies, we have built approximately $4 billion in backlog, providing exceptional revenue visibility and underpinning a durable, predictable growth model during this period of generational industry transformation," Chief Executive Officer Peter Mainz said in the company's Capital Markets Day 2026 release.

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Asia Markets

UK Shares Start Week Deep in Red as US-Iran Tensions Escalate

London's FTSE 100 closed 0.68% lower on Monday after the US and Iran exchanged fresh strikes over the weekend, while Britain's manufacturing activity accelerated to a four-year high on conflict-driven stockpiling.The US Central Command said it "conducted self-defense strikes" on Iranian radar and command and control sites in response to "aggressive Iranian actions," while Iran's Islamic Revolutionary Guard Corps said it launched a retaliatory attack against an air base used by US forces. Iranian negotiators also plan to suspend talks with their US counterparts in protest of Israeli aggression in Lebanon, Bloomberg News reported, citing a statement carried by the semi-official Tasnim news agency.Back home and on the economic front, the final S&P Global UK Manufacturing PMI stood at 53.9 in May, against the prior month's 53.7. The seventh consecutive growth came as production volumes expanded at the fastest rate in three months despite persistent headwinds, including rising prices and supply chain pressures."The sustainability of the upturn remains in doubt, however. The recent upturn in new order intakes that is driving the expansion in output is heavily reliant on both manufacturers and their clients front-loading purchases to mitigate expected war-related price increases and supply chain disruption. This bounce will fade once customers have built up sufficient safety stocks," S&P Global Market Intelligence director Rob Dobson said.Meanwhile, the annual growth rate of house prices in the UK slowed to 1.7% in May from 3% earlier, according to data from the Nationwide Building Society. The average price of houses was 278,024 pounds sterling, down from 278,880 pounds a month ago."Given the uncertainty caused by developments in the Middle East and the subsequent rise in energy prices and market interest rates, some loss of momentum was to be expected. Indeed, consumer confidence has weakened noticeably since the start of the conflict, with GfK's headline index falling to its lowest level since late‑2023 in April, with only a marginal increase in May," Nationwide Chief Economist Robert Gardner said."The housing market has not fallen off a cliff, but it is clearly looking over the edge," RBC Capital Markets said. "The good news, and there is some, is that the UK entered this shock in reasonable shape: household debt is at a two-decade low relative to income, the economy grew a healthy 0.6% in Q1, and mortgage rates, while rising, are still well below the 2023 peaks. We would not yet call this the beginning of a sustained downturn. UK house prices may have hit the brakes in May, but the engine has not yet stalled."In corporate news, easyJet (EZJ.L) signaled that its board will gauge a takeover offer from US-based Castlelake after the alternative investment firm disclosed that it is in the early stages of evaluating a potential bid for the British budget airline. The company, which is yet to receive a buyout proposal from or hold any discussions with Castlelake, traded 10.03% higher at close.

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Asia Markets

European Stocks Lower in Monday Trading as Middle East Fighting Reignites; EU, Euro Area Unemployment Unchanged in April

The European stock markets were lower in Monday trading while oil prices soared as fighting in the Middle East reignited after the US and Iran failed to agree on a peace treaty over the weekend.The Stoxx Europe dropped 1%, Germany's DAX fell 0.5%, the FTSE 100 lost 0.9%, France's CAC declined 0.8%, and the Swiss Market Index shed 1.7%.The euro area and European Union seasonally adjusted unemployment rate was 6.3% and 6.0% respectively in April, which was unchanged for both from March, according to Eurostat, the statistical office of the EU.And in corporate news, Ferrari is facing a backlash in Italy over the design of its new Luce, a fully electric vehicle which breaks away from the sports car's traditional look, the Financial Times reported Saturday.The report cited Transport Minister Matteo Salvini, former company executives, and online influencers critical of the 550,000 euro ($641,000) car, which was designed in collaboration with a former Apple design chief over five years. Criticism has been directed at Ferrari Chair John Elkann, the report said.Ferrari did not immediately reply to' request for comment.Shares of the Italian luxury sportscar maker gained 0.8% in Milan.BP is selling a 5% stake in the Browse liquefied natural gas project in Western Australia to GS Energy, leaving it with a 39.33% interest in the project, news outlets reported Monday. Financial details of the transaction were not disclosed.The sale is part of BP's portfolio management strategy of onboarding a partner to advance the project, the reports said, citing an emailed statement from BP. The project is expected to cost 48.7 billion Australian dollars ($34.97 billion) according to the reports.BP and GS Energy did not immediately respond to' requests for comments.Shares of BP rose 3.2% in London.Astrazeneca said Monday that Imfinzi, in combination with Imjudo, lenvatinib, and transarterial chemoembolization, or TACE, demonstrated meaningful improvement in progression-free survival versus TACE alone for patients with embolization-eligible unresectable liver cancer.The Emerald-3 phase 3 trial results showed that the Single Tremelimumab-actl Regular Interval Durvalumab or STRIDE regimen combined with lenvatinib and TACE demonstrated a 30% reduction in the risk of disease progression or death versus TACE alone, the company said.Shares of the British pharmaceutical company dropped nearly 3% in London.

Asia Markets

European Equities Traded in the US as American Depositary Receipts Decline in Monday Trading

European equities traded in the US as American depositary receipts started the trading week lower late Monday morning, declining 0.2% to 1,867.7 on the S&P Europe Select ADR Index.From continental Europe, the gainers were led by software firm SAP (SAP) and petroleum refiner Equinor (EQNR), which advanced 7.2% and 5.6% respectively. They were followed by accommodations booking site trivago (TRVG) and telecommunications company Nokia (NOK), which increased 5.2% and 4.8% respectively.The decliners from continental Europe were led by semiconductor company Sequans Communications (SQNS) and biotech firm Evaxion (EVAX), which dropped 7.2% and 4.8% respectively. They were followed by biotech firm BioNTech (BNTX) and lender Banco Bilbao Vizcaya Argentaria (BBVA), which fell 4.3% and 2.5% respectively.The gainers from the UK were led by software company Endava (DAVA) and oil and gas company BP (BP), which rose 5.9% and 3.6% respectively. They were followed by oil and gas company Shell (SHEL) and communications company WPP (WPP), which were up 2.2% and 0.9% respectively.The decliners from the UK and Ireland were led by biopharmaceutical companies Akari Therapeutics (AKTX) and Mereo BioPharma Group (MREO), which lost 13.4% and 9.5% respectively. They were followed by biopharmaceutical company NuCana (NCNA) and pharmaceutical company Silence Therapeutics (SLN), which were down 7.7% and 4.4% respectively.

$AKTX$BBVA$BNTX$BP$DAVA$EQNR$EVAX$MREO$NCNA$NOK$SAP$SHEL$SLN$SQNS$TRVG$WPP