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By Jeffrey Heller JERUSALEM (Reuters) - Benjamin Netanyahu, locked in down-to-the-wire coalition talks, faces a midnight deadline to form a government or risk being denied a fourth term as Israel's prime minister. Nearly two months after a convincing election victory, Netanyahu is struggling to build a solid parliamentary majority, with a former ally abandoning him this week. The key to his political future now lies with the ultranationalist Jewish Home party, which advocates annexation of parts of occupied territory Palestinians seek for a state. Shortly after the March 17 vote, Netanyahu and his Likud party appeared to be coasting toward a right-leaning government with control of 67 of parliament's 120 seats.
European equities struggled to stop the rot after a rout on Tuesday, as soaring bond yields dampened any relief from a growing consensus that the damaging threat of deflation across the continent may be disappearing. A broad bounce in commodities saw oil and copper prices rise to their highest levels so far this year.