Financial Wire

Swiss Market Index in Red as Hopes for Middle East War Resolution Fade

-- Swiss stocks began the trading week on a somber note, with the Swiss Market Index down 1.45% on Monday's close, as hopes for a resolution to the war in the Middle East faded amid renewed geopolitical tensions between the US and Iran.

"The Middle East conflict escalated early this morning as the US intercepted an Iranian cargo ship trying to breach its maritime blockade, prompting Iran to vow retaliation. The prospects for a second round of negotiations remain uncertain ahead of the ceasefire's expiration on Tuesday, with Iran refusing to participate unless the blockade is lifted," Danske Bank said. "The market is likely to stay volatile this week as US and Iran will try and negotiate a deal. If oil does not start flowing through the strait soon, oil prices are likely to rise further and above USD 100/bbl again."

Meanwhile, the only agenda on the Swiss economic calendar for the week is the balance of trade data for March. Elsewhere, the April ZEW economic sentiment index for Germany and the euro area, and the UK's March inflation figures are on top of the agenda.

On the corporate front, Eli Lilly (LLY.SW) signed a definitive agreement to acquire biotechnology company Kelonia Therapeutics for up to $7 billion in cash, including an upfront payment of $3.25 billion and subsequent milestone-based payments. The transaction, which is set to complete in the second half, is expected to bolster Lilly's genetic medicine capabilities.

"Autologous CAR-T therapies have meaningfully improved outcomes for patients with various cancers, but significant manufacturing, safety, and access barriers mean that only a fraction of eligible patients actually receive them. Kelonia's in vivo platform has the potential to change that by delivering rapid, durable responses in a far simpler, off-the-shelf format," said Jacob Van Naarden, executive vice president and president of Lilly Oncology and corporate business development head. "The early clinical data for KLN-1010 are highly encouraging, both as a potential step forward for patients with multiple myeloma and as proof of concept for Kelonia's platform."

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Jadestone Secures Gas Sales Agreement for Vietnam Fields, Eyes 2028 Production

Jadestone Energy said Monday that it signed a gas sales deal for its Vietnam fields, targeting output of 80 million standard cubic feet per day with production expected to begin in late 2028.The agreement covers gas supply from the Nam Du and U Minh discoveries offshore southwest Vietnam, the company said.The deal aligns with the development plan approved on March 18, 2026, with first production targeted in late 2028, it added.Under the deal, gas will be sold to PV Gas, a unit of state-owned Petrovietnam, under defined supply and pricing terms, Jadestone said.The contract sets a daily supply level of 80 MMscf/d, with flexibility up to 110% and a take-or-pay clause covering 90% of volumes, the company added.Pricing is linked to historical Vietnam gas import levels, with annual escalation built into the agreement, ensuring predictable revenue over time, Jadestone said.The fields hold about 32 million barrels of oil equivalent in proven and probable reserves, supporting long-term production potential, the company noted.Jadestone also sees upside from nearby prospects, estimating up to 1.5 trillion cubic feet of additional gas that could extend plateau output and enhance project value, the company said.Chief Executive Officer T. Mitch Little said the agreement marks a key milestone for Jadestone, enabling progress toward project execution, with a focus on contract awards, while supporting Vietnam's energy security, economic growth, and long-term emissions goals.

Sectors

Sector Update: Tech

Tech stocks were mixed Monday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) decreasing 0.2% and the State Street SPDR S&P Semiconductor ETF (XSD) rising 1.2%.The Philadelphia Semiconductor index shed 0.2%.In corporate news, Alphabet's (GOOGL) Google has built a strike team of engineers and researchers to enhance its AI coding models, The Information reported. Alphabet shares were down nearly 1%.

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