<div id="readability-page-1"><div> MARKET WRAPS Stocks: European shares were tentatively higher Thursday as investors parsed hints of progress in U.S.-Iran talks and increased bets on Federal Reserve rate hikes. Trump said Wednesday that negotiations with Iran were in their &#34;final stages&#34; but warned the U.S. will have to get &#34;a little bit nasty&#34; if no deal is reached. Brent crude was ticking higher but remained well below $110. Fed minutes showed most policymakers would support raising rates if inflation stayed persistently above the 2% target. Danske Bank now expects the next policy changes to be 25bp rate increases in December 2026 and March 2027. Previously, it expected the Fed to cut. &#34;Importantly, the shift has not been driven by just the war in Iran and instead we think that demand factors are fuelling more structural inflation.&#34; Shares on the Move ASML slipped at the open as investors gave a lukewarm response to Nvidia earnings overnight. Software and consumer-facing companies dragged on the FTSE 100. Airline stocks in Europe were mixed after easyJet's first-half results pointed to an uncertain demand outlook for the industry. Stocks to Watch Shell will get an earnings boost from stronger commodity prices through 2028, Baader said, raising the company's target price. Baader increased its 2026 EPS expectation by 28% and its 2027 view by 22%. U.S. Markets: Stock futures pointed to a lower open Thursday after the main indexes all posted gains in the previous session. Nasdaq futures were down despite Nvidia posting stellar earnings after the bell Wednesday. Moves suggest that the market has concluded that the chip maker's numbers were good, but not good enough to keep the AI rally going. Blockbuster IPOs are capturing attention with both SpaceX and OpenAI making steps toward going public. Forex: The dollar rose supported by expectations that the Fed could raise interest rates. The euro stayed lower after a weaker-than-expected flash eurozone purchasing managers' survey for May. The composite PMI fell to a 31-month low of 47.5 in May, from 48.8 in April. Bonds: Treasury yields edged higher, as oil prices moved up slightly in Asian trade, but stayed below highs reached earlier this week. Eurozone government bond yields remained lower after the PMI data. &#34;The survey data indicate that the euro-area economy looks set to contract by 0.2% in the second quarter ,&#34; S&amp;P said. MFS Investment Management said Europe was displaying the highest level of bond yield volatility at the moment, closely followed by the U.K. The volatility of two-year German bonds is the highest across major markets. &#34;This may be the result of some significant macro and policy uncertainty in the face of the ongoing geopolitical crisis.&#34; Energy: Oil prices rebounded as traders closely watched developments in U.S.-Iran negotiations. Meanwhile, the latest EIA data pointed to a tightening U.S. market on the back of stronger oil exports. &#34;Markets continue to swing on conflicting headlines,&#34; MUFG said. &#34;Declining U.S. crude inventories and continued uncertainty over Iran's response to the latest US proposal are keeping oil markets volatile .&#34; HSBC Global Investment Research said the oil market appeared to be rebalancing , with prices relatively contained despite the disruption stemming from the Middle East conflict. Julius Baer said oil was likely to trade meaningfully lower later this year , as the current crisis should follow the historical pattern of a short-lived but intense price shock. Metals: Gold prices fell after the Fed minutes. &#34;Gold has traded within a relatively narrow range in recent weeks and remains down around 14% since the war began in late February,&#34; MUFG said. Market watchers said gold would likely need to see a significant easing in oil-driven inflation pressures or fresh evidence that slowing growth risks are beginning to outweigh inflation concerns to regain upward momentum. EMEA HEADLINES easyJet Posts Widened Pretax Loss as Middle East Conflict Heightens Uncertainty U.K. budget carrier easyJet reported a widened pretax loss for its fiscal first half as costs rose, and said its full-year outlook is uncertain due to booking delays and fuel-price volatility amid the Middle East conflict. The company said Thursday that its pretax loss for the half year ended March 31 was 552 million pounds ($741.5 million) compared with a loss of 401 million pounds for the year-earlier period. Ubisoft Shares Plunge After Assassin's Creed Maker Delays Targets Ubisoft Entertainment shares fell sharply after the Assassin's Creed maker said it expected to hit profitability and cash-generation targets a year later than previously planned amid a revamp of its operations. Shares in Ubisoft were down 15% in European morning trading Thursday, taking the stock's year-to-date loss to 37%. Generali Posts Lower Net Profit, Hit by Market Volatility Assicurazioni Generali reported a decline in first-quarter net profit after market volatility hit the value of its investments, but posted top-line growth. Net profit for the quarter was 1.17 billion euros ($1.36 billion) compared with 1.195 billion euros in the year-earlier period, the Italian insurer said Thursday. Analysts had expected net profit at 1.095 billion euros, according to consensus estimates compiled by the company. BT Group Pretax Profit Rises, But Revenue Falls on Lower International Performance BT Group reported higher pretax profit for fiscal 2026, despite logging lower revenue partly due to a decline in its international business. The U.K. telecommunications company said Thursday that pretax profit for the year ended March 31 rose to 1.44 billion pounds ($1.93 billion) from 1.33 billion pounds the year prior. Equinor, Aker BP Partner to Increase Production on Norwegian Continental Shelf Equinor and Aker BP entered into a partnership that aims to increase oil and gas production on the Norwegian Continental Shelf. The energy companies said Thursday that the deal includes a series of transactions across several discoveries to better align ownership interests, speed development of resources and enhance production. The Fashion Scion Facing Suspicion Over His Father's Fatal Fall BARCELONA-Jonathan Andic had it all. A thriving fashion empire, a beautiful young family and the means to frequent exclusive enclaves in sun-kissed Ibiza and snowy St. Moritz. On Tuesday, he was arrested at his home by Spanish police and taken away in handcuffs to be questioned on suspicion of playing a role in the mysterious death of his billionaire father. GLOBAL NEWS U.S. Stock Futures Fall as Equities Rally Loses Steam U.S. stock futures pointed lower after oil prices nudged higher and investors' lukewarm reaction to Nvidia's earnings took steam out of the previous session's stock-market rally. Brent crude oil rebounded above $106 a barrel after falling sharply in the prior session on positive signals from the U.S. and Iran on the progress of peace negotiations. Global Economy Slowing as Middle East Conflict Bites, Surveys Show Business activity in Europe and Asia has slowed in May as energy costs have risen and new orders cooled, an indication that the global economy has been weakened by the fallout from the conflict in the Middle East. The war has led to a sharp decline in shipments through the Strait of Hormuz, through which a fifth of the world's oil and natural gas supplies usually transit. As a result of reduced supplies, energy prices have jumped around the world. The Longest Internet Blackout in History Is Crippling Iran's Economy Iranians are enduring the longest and most intense internet blackout in history, compounding an economic crisis that sparked nationwide protests in December. For nearly three months, businesses have been disconnected from clients and suppliers. Merchants have struggled to work with longstanding international business partners. Many businesses have closed, hurling more Iranians into unemployment. Trump's Revenge Campaign Sparks Backlash From GOP Senators WASHINGTON-President Trump's retribution campaign is fracturing support for his priorities in the Senate, where anger is mounting among Republicans over his latest moves to punish GOP critics and reward allies headed into what is expected to be a difficult midterm election for their party. The growing frustration with Trump could endanger Republicans' legislative agenda, which relies on their ability to stick together on party-line votes, from immigration-enforcement funding to a gas-tax holiday to tens of billions of dollars for the U.S. war in Iran. It could also weigh on their chances for holding on to their majorities in the House and Senate. Write to gareth.mcpherson@wsj.com Write to us at newsletters@dowjones.com We offer an enhanced version of this briefing that is optimized for viewing on mobile devices and sent directly to your email inbox. If you would like to sign up, please go to https://newsplus.wsj.com/subscriptions. This article is a text version of a Wall Street Journal newsletter published earlier today. <pre></pre> (END) Dow Jones Newswires May 21, 2026 05:16 ET (09:16 GMT)Copyright (c) 2026 Dow Jones &amp; Company, Inc.</div></div>

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European shares showed tentative gains as investors considered U.S.-Iran negotiations and potential Federal Reserve rate hikes. Fed minutes indicated support for rate increases if inflation persists above 2%. EasyJet reported a widened pretax loss amid rising costs and uncertainty in demand. Oil prices rebounded due to U.S.-Iran talks, while gold prices fell following Fed discussions. Ubisoft shares dropped after delaying profitability targets. The eurozone PMI fell to a 31-month low, suggesting economic contraction.

European Midday Briefing: Investors Weigh Peace Progress, Fed Hike Prospects