The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
1115 GMT - Societe Generale has shown a proactive approach in addressing market concerns, Citi says in a research note. Managerial changes and a quarterly beat should assuage worries over the turnaround in French retail, the company's capital and communication issues, analyst Azzurra Guelfi writes. The French bank's third-quarter results showed a turning point in profitability in its domestic market after a disappointing previous set of results. "This should increase market confidence in the company's ability to deliver on 2026 targets," analyst Azzurra Guelfi writes, adding that shares look attractive. Citi raises its rating to buy from neutral. Shares edge down 0.2% at 27.2 euros, but have gained 13% year to date. (elena.vardon@wsj.com)
1057 GMT - Novo Nordisk's positive headline result in the study of weight-loss drug Wegovy in liver disease metabolic dysfunction-associated steatohepatitis--known as MASH--isn't a game changer but it doesn't hurt either, Deutsche Bank's Emmanuel Papadakis writes. Whilst hardly central to the investment thesis, MASH could be a blockbuster tailwind for medium-term Wegovy revenues, i.e over $1 billion, he says. "We view this as a minor positive." Deutsche Bank rates Novo Nordisk at buy with a 1,100 Danish kroner target price. Shares fall 1.6% to 756.80. (dominic.chopping@wsj.com)
1056 GMT - Anglo American's $1.1-billion sale of stakes in Australian coal mines is done at a higher price than estimated, RBC Capital Markets analyst Marina Calero writes in a research note. This should serve to reassure the market on management's commitment to execute on the restructuring plan, Calero says. RBC continues to see potential for a material rerating in the medium term as the London-listed miner delivers on its restructuring plan. Shares are up 0.9% at 24.17 pounds. (christian.moess@wsj.com)
1048 GMT - Norges Bank is expected to keep its key interest rate at 4.5% Thursday and to repeat guidance for an unchanged rate in December,Danske Bank says. The central bank signaled in September that the policy rate would most likely be kept unchanged for the rest of the year. The growth and inflation prospects have not changed significantly since September, Danske says. Thursday's meeting will include a press release and press conference, but no monetary policy report with updated forecasts. (dominic.chopping@wsj.com)
1046 GMT - Indian shares closed lower amid weak investor sentiment. Caution is prevailing ahead of the U.S. election and the Federal Reserve's November rate decision. The benchmark Sensex fell 1.2% to 78782.24. Financial and energy stocks led losses. Axis Bank declined 2.15% and Bajaj Finserv dropped 2.4%. NTPC was 2.6% lower and Power Grid Corp. of India shed 2.1%. Adani Ports & Special Economic Zone was the biggest laggard on the benchmark index in this session, dropping 3.2%. Tech stocks rose, with Tech Mahindra up 1.9%. (sherry.qin@wsj.com)
1042 GMT - Appointing Olivier Blum as Schneider Electric's new CEO makes sense from a succession perspective, even though the change in leadership was a major surprise, JPMorgan analysts say in a research note. The French industrial-technology company appointed the current vice president of the energy management division as the new CEO. This move makes sense under the company's unchanged strategy, the analysts say. The company didn't cite disagreements on mergers and acquisitions as a factor in the decision-making. The failed Bentley Systems transaction was also not part of the discussion, they write. "We would expect shares to be weaker today as the news is digested," they say. Shares trade 1.3% lower at 236.75 euros. (nina.kienle@wsj.com)
1041 GMT - Schneider Electric's change in leadership signals that mergers and acquisitions are now more likely, Berenberg analysts Philip Buller and Scott Humphreys say in a research note. The French industrial-technology company's CEO change follows the news of Siemens's very expensive Altair deal, which, based on the share-price reaction, the market seemed to like, the analysts say. They believe the management swap is mainly due to "a lack of, or disagreement on, M&A strategy and priorities." Operationally everything appears on track for Schneider and it should have a strong finish to 2024. Shares trade 1.3% lower at 236.75 euros. (nina.kienle@wsj.com)
1032 GMT - Schneider Electric's decision to remove its chief executive officer was unexpected but won't harm the company in the long-run, Stifel analyst Alexander Wahl writes in a research note. The company's finance chief Hilary Maxson told analysts that the decision wasn't related to any operational issues, Wahl said. Maxson said the board felt the CEO wasn't executing the strategic roadmap in a decisive and collaborative enough manner, Wahl added. The company will continue to implement its current strategy with no major strategic changes expected, he added. Shares trade down 1.3% at 236.75 euros. (adam.whittaker@wsj.com)
1006 GMT - The Bank of England's staff assessment of the new Labour government's budget could support sterling slightly, Monex analysts say in a note. The assessment will likely hint that the higher spending planned in the budget will require a "marginally slower" pace of interest-rate cuts, they say. This should be positive for sterling, albeit at the margin. The BOE is expected to cut the bank rate by 25 basis points on Thursday. Tuesday's U.S. election is unlikely to prevent the BOE from offering any concrete forward guidance, Monex analysts say. (emese.bartha@wsj.com)
0926 GMT - Singapore's FTSE Straits Times Index closed 0.5% higher at 3572.04. Investors are awaiting the U.S. presidential election outcome, which will likely have a significant impact on global financial markets. The market is also watching for the Fed's rate decision later this week. Among best performers on the benchmark index, Hongkong Land was up 7.1%, Thai Beverage added 2.0% and Sembcorp Industries rose 1.8%. Meanwhile, Yangzijiang Shipbuilding fell 0.8% and Singapore Exchange shed 0.5%. (amanda.lee@wsj.com)
0925 GMT - Malaysia's benchmark Kuala Lumpur Composite Index closed 0.8% higher at 1616.43 as Asian equity markets rose broadly following Wall Street's gains on Friday. However, market sentiment could remain subdued as investors await the outcome of the U.S. presidential election, Apex Securities writes in a note. Investors will also be closely monitoring the Federal Reserve's interest-rate decision this week, it adds. Among gainers, YTL Corp. rose 4.0%, IOI Corp. climbed 3.4% and Kuala Lumpur Kepong added 2.75%. Meanwhile, Public Bank fell 0.9% and Hong Leong Financial Group lost 0.3%.(amanda.lee@wsj.com)
0924 GMT - China's property market is likely to continue to recover in the near term, CCB International analysts say in a research note. The property sector has seen a strong recovery in October, due to earlier stimulus measures, the analysts say. Although some investors are skeptical about the sustainability of the recovery path, CCB thinks China has shown its determination for support. If property sales miss expectations in the following months, China is likely to roll out more stimulus measures, they add. CCB's most preferred stocks in the sector are China Overseas Land & Investment, Greentown China and Longfor Group. (tracy.qu@wsj.com)
(END) Dow Jones Newswires
November 04, 2024 06:16 ET (11:16 GMT)
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