<div id="readability-page-1"><div> MARKET WRAPS European stocks traded higher , rebounding from Tuesday's lower close, as investors look ahead to President Trump's visit with Chinese leader Xi Jinping. The two leaders are expected to discuss trade, Iran and Taiwan and the meeting comes as the U.S. has targeted some of China's other partners like Venezuela. China is expected to pressure Iran to open the Strait of Hormuz in exchange for de-escalation from the U.S., Natixis IM said, which doesn't anticipate the talks to be market moving. &#34;Should there be some progress on easing technology restrictions, this could provide a catalyst for a further move higher in the semiconductor complex.&#34; Jefferies contends that if there is no breakthrough during the talks on the Iran war, there could be a few more weeks of the Strait of Hormuz being closed. Approaching midday the FTSE 100, the CAC 40 and the DAX were in positive territory. The pan-European Stoxx 600 was up. The moves come as unemployment in France in the first quarter rose compared with the last three months of last year. Eurozone industrial production data for March is expected soon. Economic Insight Federal Reserve easing appears to be off the table, given the latest U.S. inflation readings, but rate hikes are also unlikely, Lazard said. U.S. headline inflation rose to 3.8% in April from 3.3% in March. &#34;Unfortunately, May CPI inflation is likely to be high as well.&#34; Market Insight The International Energy Agency expects global oil demand to contract by 420,000 barrels a day this year, compared with its previous forecast of an 80,000-barrel-a-day decline. It added that the near-closure of the Strait of Hormuz has led to an unprecedented supply shock that could keep oil supplies constrained for months. U.S. Markets: Stock futures pointed to a mostly higher open Wednesday after Tuesday's session saw the Dow achieve a meager gain while the Nasdaq and S&amp;P 500 both fell. Forex: The dollar rose as the stalemate between the U.S. and Iran and Tuesday's higher-than-expected U.S. inflation data weighed on risk sentiment and reduced the prospect of the Federal Reserve cutting interest rates. Sterling rose against the euro, recovering from recent losses, after U.K. Prime Minister Keir Starmer reaffirmed he wouldn't stand down and as Labour Party lawmakers signed a statement against a leadership challenge. The pound, however, fell against the dollar. Bonds: Eurozone government bond yields edged down, moving in line with Treasury yields, as oil prices turned lower. Oil price moves remain a key driver for eurozone government bonds, given Europe's net importer position and the continued blockade of the Strait of Hormuz. Yields on U.K. government bonds were lower but they could climb further as political uncertainty persists and inflation concerns rise, Pepperstone said. U.K. 30-year gilt yields hit a 28-year high on Tuesday amidst calls for Starmer to step down. Government bond issuance in the eurozone will be significant Wednesday, with auctions from Italy, Germany and Portugal to be accompanied by an Irish syndicated bond tap. Treasury yields edged lower, reversing from Tuesday's rise, as oil prices eased slightly despite continued tensions between the U.S. and Iran. The 4.5% level for 10-year Treasurys remains in sight, ING said, and &#34;once there, it will meet buyers, as that's a level that flags a structural buy for many players.&#34; HSBC confirmed a neutral conviction on Treasurys, but sees risks for further &#34;bear flattening.&#34; It raised its end-2026 forecasts for two- and five-year Treasury yields to 3.85% and 4.00%, respectively, from 3.50% and 3.75%. &#34;While we think the bar for pricing in substantial near-term rate hikes remains high, the persistence of uncertainty around the Middle East conflict and a continued closure of the Strait of Hormuz could present risks of further cheapening.&#34; Energy: Oil prices fell after a three-day rally as investors await developments in U.S.-Iran negotiations and brace for a summit between Washington and Beijing. Meanwhile, the EIA assumes the Strait of Hormuz will remain closed until late May. But even if shipping begins to pick up in June, shipments likely won't reach prewar levels until later in the year, the U.S. agency says. Metals: Gold prices rebounded after this week's pullback attracted fresh buying interest. &#34;Markets now price in more than a 40% probability of a Fed rate hike by year-end, driving U.S. bond yields higher and weighing on non-yielding gold. Despite the pressure from rising rates and elevated energy-driven inflation, gold has remained relatively resilient due to strong demand from central banks,&#34; MUFG said. EMEA HEADLINES Siemens Launches New $7 Billion Share Buyback Program Siemens launched a new 6 billion euros ($7.04 billion) share buyback program over a period of up to five years, as it posted higher second-quarter revenue in its industrial businesses. The German industrial giant on Wednesday said that for the quarter ended March, net profit fell to 2.03 billion euros from 2.25 billion euros, on group revenue that was flat at 19.76 billion euros. Germany's Merck KGaA Raises Guidance Germany's Merck KGaA raised its full-year guidance, saying it expects the performance of its life-science and healthcare businesses to be better than previously anticipated. The chemical-and-pharmaceutical group on Wednesday forecast net sales to range from 20.4 billion to 21.4 billion euros ($23.95 billion to $25.13 billion) this year, up from its previous expectations of 20 billion to 21.1 billion euros. Merck expects organic sales growth of up to 3%. Hapag-Lloyd Cautions on Higher Costs From Middle East Fallout German shipping company Hapag-Lloyd maintained its guidance for the year ahead, but warned that the situation in the Middle East is increasing costs through disruption to its regional liner network and higher fuel prices. These costs are expected to be partly offset by higher average freight rates, it said. Deutsche Telekom Lifts Full-Year Guidance Deutsche Telekom reported lower net profit in the first-quarter but raised its full-year expectations, following an outlook increase from its U.S. subsidiary. The German telecommunications company now expects adjusted earnings before interest, taxes, depreciation and amortization after leases of around 47.5 billion euros ($55.77 billion), up from a previous guidance of around 47.4 billion euros. It projects free cash flow after leases of more than 19.8 billion euros compared to around 19.8 billion euros previously. GLOBAL NEWS Wall Street Is Getting More Anxious About Long-Term Inflation Tuesday's hot readout on consumer prices is intensifying Wall Street's anxiety about inflation. Even before the latest release of the consumer-price index, inflation expectations had been climbing, a potential trouble spot in a market where stocks have largely shrugged off the U.S.-Iran conflict and the resulting energy shock. India Raises Gold, Silver Tariffs to Curb Imports India has hiked tariffs on gold and silver imports, days after Prime Minister Narendra Modi warned that the Middle East crisis was pressuring the country's foreign-exchange reserves. A finance ministry notification published Wednesday showed that levies on several precious metals and related products were raised in a move the government said was in the public's interest. Iran Expands Strait Definition Iran said it has significantly expanded its definition of the Strait of Hormuz, signaling its intent to widen its grip on the crucial waterway that was effectively closed to global shipping by Iranian attacks at the start of the conflict. Mohammad Akbarzadeh, an official with the Islamic Revolutionary Guard Corps naval forces, said Tehran now considers the Strait of Hormuz to encompass a much larger area than before the war. Akbarzadeh said Iran would &#34;not allow any kind of encroachment upon its waters and interests.&#34; Copper prices are now at their highest level on record. AI is only part of the story. A pound of copper now costs more than ever before - and there's more to the story than just the artificial-intelligence race. Sulfuric acid, a critical component in copper refining, has been in shorter supply lately because of the Iran war and shipping disruptions in the Strait of Hormuz. China also has placed restrictions on exports of the chemical - and both of those factors are likely increasing copper's production costs. Trump Can Keep Collecting Global 10% Tariffs After Appeals Court Stays Decision A federal appeals court has granted the Trump administration's request to pause last week's ruling by the Court of International Trade declaring Trump's latest global tariffs unlawful. The decision last week affected tariffs paid by two small businesses and Washington state. The Trump administration appealed the trade court's ruling, and today the appeals court granted the administration a temporary but immediate stay &#34;until further notice&#34; while it considers the administration's appeal of that ruling. FDA Commissioner Marty Makary, Under Pressure From Trump, Resigns WASHINGTON-Food and Drug Administration Commissioner Marty Makary resigned Tuesday after months of policy fights with top officials in the Department of Health and Human Services and the White House. His departure became official after President Trump signed off last week on a plan to fire Makary, The Wall Street Journal previously reported. Makary offered his resignation, effective Tuesday. The New Route Around Hormuz Involves a Massive Convoy of Trucks Convoys of heavy-duty trucks barreling across the Arabian desert have become an escape valve for the global economy. (MORE TO FOLLOW) Dow Jones Newswires May 13, 2026 05:06 ET (09:06 GMT)Copyright (c) 2026 Dow Jones &amp; Company, Inc.</div></div>

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European stocks are recovering as investors anticipate President Trump's meeting with Chinese leader Xi Jinping, focusing on trade and geopolitical issues. The FTSE 100, CAC 40, and DAX are all in positive territory. Meanwhile, U.S. inflation data suggests no imminent rate cuts from the Federal Reserve. Oil demand is expected to contract significantly due to geopolitical tensions, particularly around the Strait of Hormuz. Gold prices have rebounded amid strong central bank demand, despite rising U.S. bond yields. Siemens has announced a new $7 billion share buyback program.

European Midday Briefing: Stocks Recover; Focus Turns to Trump-Xi Meeting