UBS raises its 2026 year-end PT for the STOXX Europe 600 to 690 from 630.

UK gilt yields across maturities fell about 4-6 bps in early trade.

Al Jazeera cited Iran analyst Mortazavi saying that after the end of direct exchanges the US and Iran have entered a phase where diplomatic talks coexist with military pressure. The current understanding, she said, merely pauses hostilities and does not resolve core disputes; both sides are testing red lines and seeking leverage for future negotiations. Mortazavi said Iran remains willing to talk but is maintaining military pressure to strengthen its bargaining position amid limited trust in the US, with some officials treating the deal as a temporary ceasefire rather than a move toward lasting peace. She warned the coming months could see repeated episodes of tension and localized escalations rather than sustained peace or full-scale war.