MARKET WRAPS

European indexes began the trading week on a stronger note as banks, tech and energy-hungry industrial names rose and retraced some of Friday's sharp losses.

The recovery comes as market worries about disrupted Saudi oil flows continued to ease, bringing with it falling bond yields on both sides of the Atlantic.

"Bond markets have reached a critical point. The coming days will show whether the market can stabilize again following initial signs of shifting dynamics," Commerzbank said.

The decline in oil prices "reflects a partial unwinding of the geopolitical risk premium," according to Zaye Capital Markets.

Though oil prices were falling, the long-term fallout of recent attacks on Saudi Arabia remained a key concern for investors, according to ANZ Research, which added that the broadened conflict in the Middle East increases the odds that oil supply from the Persian Gulf would remain constrained.

On Saturday, Houthi fighters claimed an attack against Saudi Arabia's capital, which struck Riyadh's airport.

Approaching midday, the FTSE 100, the CAC 40 and the DAX were gaining. The pan-European Stoxx 600 index was in the green, though European energy stocks were in the red. London miners were in positive territory.

Meanwhile, local state election losses suffered by Germany's ruling Christian Democratic Union over the weekend should have a limited effect on the euro, ING said, adding the vote reflected local dynamics rather than a verdict on Chancellor Friedrich Merz's reforms.

"These developments add some clouds to the euro, but are not enough to displace rate differentials and oil as its primary drivers."

Elsewhere, world leaders are meeting this week in New York for the U.N. General Assembly. Trump is expected to meet Persian Gulf leaders on the sidelines of the summit and host China's President Xi on Thursday.

U.S. Markets:

Stock futures pointed to a higher open Monday, with the Dow, S&P and Nasdaq in positive territory premarket as markets appear to be looking beyond geopolitical tensions in the Middle East and European political uncertainty. Forex:

The losses suffered by Germany's ruling Christian Democratic Union in state elections should have a limited impact on the euro, ING's Francesco Pesole said. "These developments add some clouds to the euro, but are not enough to displace rate differentials and oil as its primary drivers," he said.

The dollar rose as it continued to receive support from expectations for further interest rate rises by the Federal Reserve.

Bitcoin remained elevated above $81,000 after reaching a two-and-a-half-week high overnight.

Bonds:

Eurozone government bond yields fell, tracking Treasury yields lower, helped by declining oil prices. "The coming days will show whether the market can stabilize again following initial signs of shifting dynamics," Commerzbank's Rainer Guntermann said.

Treasury yields fell as Brent oil prices slipped toward $100 a barrel on a tentative improvement in the geopolitical outlook.

Yields on U.K. government bonds fell as oil prices declined, calming inflation concerns.

Energy:

Oil fell as concerns eased over disruptions to Saudi pipeline flows and hopes grew for diplomatic talks between Trump and Gulf leaders on the sidelines of the U.N. General Assembly this week.

Metals:

Gold slipped as investors weighed inflation risks and the Federal Reserve's monetary policy outlook following last week's rate hike. "Gold remains caught between geopolitical and safe-haven support on one side and restrictive US monetary policy on the other, with the outlook for inflation and the pace of additional Fed hikes likely to remain the key drivers," said Soojin Kim from MUFG.

Copper rose on signs of stronger demand from China and broader supply-side concerns.

Iron ore prices were higher in early trading. Overall iron-ore shipments are continuing a seasonal upward trend, remaining at relatively high levels, according to Nanhua Futures.

EMEA HEADLINES

Kuehne+Nagel Strikes Deal With Amazon For Supply Chain, Cloud Capabilities

Logistics company Kuehne+Nagel struck a deal with Amazon to bolster its role in data center infrastructure and strengthen the American tech giant's customer service capabilities.

The Swiss company said Monday that the long-term partnership with Amazon builds on an existing relationship and is designed to support future business opportunities.

Volkswagen Warns on Profit After Big Porsche Write-Down

Volkswagen slashed its full-year profit forecast after flagging roughly $11.5 billion of impairment charges linked to its stake in Porsche, tough trading conditions in China and its restructuring efforts.

The German carmaker said Friday that it now expected an operating return on sales of up to 1% this year, down from its prior estimate of between 4% and 5.5%. The new forecast, announced just before the market closed in Germany, sent Volkswagen shares down more than 5%.

Volvo Recruits a Top VW Executive to Steer Its Turnaround

Volvo Cars named Klaus Zellmer as its next chief executive, poaching one of Volkswagen Group's top-performing brand chiefs to launch a raft of new vehicles and revive growth in a ferociously competitive market.

Zellmer, the current CEO of VW's Škoda, will succeed Håkan Samuelsson, a 75-year-old veteran of Volvo, no later than October 2027.

Nvidia-Backed Cloud Startup Nscale Files for IPO

Nvidia-backed cloud computing company Nscale filed for an initial public offering.

The U.K.-based company didn't say how many shares it would offer, or at what price, according to a Friday filing with the Securities and Exchange Commission.

Trump's Greenland Deal Eases Way for U.S. Business on Arctic Island

The security deal over Greenland, announced by President Trump on Friday, relieves the pressure from months of American maneuvering to control the semiautonomous Danish territory and smooths the way for more U.S. investments on the cash-starved but resource-rich Arctic island.

American and Greenlandic businesspeople say they hope the agreement, which is expected to be signed this week, will ease geopolitical tension, drive investment and remove some of the stigma many Greenlanders attach to cooperating with the Americans.

GLOBAL NEWS

AI Is the Real Drama of the Trump-Xi Talks

President Donald Trump and Chinese leader Xi Jinping will likely have little choice but to discuss artificial intelligence and its dizzying advancement when they meet this week. Their countries, after all, are engaged in a race to be the world's pre-eminent AI power.

Seemingly everyone is talking about artificial intelligence: Industry leaders are calling for slowing the pace of development; researchers are warning about catastrophic risks; and concerns about AI going rogue are mounting. But few expect Trump and Xi to get very far on the contentious topic when they meet Thursday in Washington, D.C.

Refineries Are Now the Main Chokepoint for Global Energy Supplies

Persian Gulf states and Russia have invested tens of billions of dollars in refineries over the past decade to grab a bigger share of the global diesel market. Now, war in both regions has sent exports plunging, squeezing supplies of a fuel that powers much of the global economy.

Diesel prices are soaring-they eclipsed $6 a gallon in the U.S. for the first time this month and have kept climbing, hitting $6.45 on Friday. The surge has rattled governments and markets around the world that rely on diesel as the workhorse of their industry, transportation and agriculture. Shortages have appeared at gas stations in rural Brazil, in Libya and some African nations that can't afford to import the fuel.

A Shortage of Oil Tankers Is Threatening to Keep Gas Prices High

The Iran war has created a new shortage on the oil market. This time the scarce commodity isn't just crude-it is the ships that carry it.

Drone attacks that shut Saudi Arabia's bypass pipeline earlier this month have forced more crude back through the Strait of Hormuz and onto a tanker fleet already stretched thin. The impact has spread worldwide, as longer voyages and shuttle runs around Hormuz tie up ships and push the daily rate of hiring oil tankers to records.

The Silver Lining in Soaring Interest Rates: The Economy Can Handle Them

Some economists see a silver lining to the global surge in borrowing costs: the economy is strong enough to handle them.

Economies around the world are showing surprising resilience to higher central bank-interest rates and government bond yields that have jumped to multidecade highs across the developed world. The Federal Reserve, Bank of Japan and European Central Bank are among central banks that have lifted interest rates to contain inflation driven by the war with Iran.

Trump Ramps Up Bid to Dismantle International Criminal Court

The Trump administration is preparing to impose sweeping sanctions on the International Criminal Court, according to officials, a sharp escalation in Washington's efforts to dismantle the institution after it issued an arrest warrant for Israeli Prime Minister Benjamin Netanyahu.

The sanctions would forbid most transactions with the ICC after a grace period of six to seven months, according to documents viewed by The Wall Street Journal and U.S. officials. That could potentially cripple the court by prohibiting it from conducting transactions in U.S. dollars, cutting it off from much of the global financial system.

Wave of Setbacks Leaves Trump Frustrated and Looking for Credit

WASHINGTON-President Trump wants a little gratitude.

At a recent closed-door meeting in the Oval Office, the president expressed deep frustration to advisers that prominent figures in Washington hadn't publicly thanked him for trying to overhaul the Kennedy Center, according to a senior administration official.