The latest Market Talks covering Basic Materials. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0650 ET - Wacker Chemie's fourth-quarter earnings look very weak and fall short of consensus expectations that had been dialed down substantially in recent weeks, J.P. Morgan analysts say in a research note. The German chemical company's results were hit by general competitive pressures, weak demand in parts of the business, and inventory-reduction efforts, JPM says. Moreover, restructuring provisions and the write-down of the value of its stake in Siltronic also weighed on its bottom line, the analysts say. Wacker Chemie's earnings outlook looks challenging due to a combination of structural and cyclical factors, and these don't seem to be fully reflected in the valuation, they add. Shares fall 3.6% to 69.15 euros. (adria.calatayud@wsj.com)
0549 ET - Fresnillo's fourth-quarter output was mixed, J.P. Morgan analysts write. Quarterly silver production was 5% behind what the analysts had expected while gold production was 6% ahead. Its guidance through 2028 is weak, they say. The lower volume guidance will likely lead to mid-single-digit downgrades to 2026 and 2028 Ebitda expectations, they say. Fresnillo's shares fall 0.1% to 41.36 pounds. (adam.whittaker@wsj.com)
0404 ET - Fresnillo's guidance cut points to lower market views for Ebitda in fiscal 2026-28, RBC Capital Markets analysts Marina Calero and Laura Chan say. Consensus for earnings should decline by an average 6%, they say. The miner assumes 1 troy ounce of gold is worth 80 times more than 1 ounce of silver, but analysts say market reality is that 1 ounce of gold is only worth 46 times more. "Using current spot prices we forecast today´s downgrades to consensus estimates will be offset by mark to market upgrades to commodity prices if current strength continues," the analysts say. Shares are up 2% at 4,222 pence. (anthony.orunagoriainoff@dowjones.com)
0203 ET - The strength of the euro relative to the U.S. dollar is back in focus as investors look for ways to diversify away from the U.S., and this could cast a cloud on European stocks, Citi strategists say in a research note. Sustained euro appreciation would reinforce a neutral view on European stocks, as recent trans-Atlantic tensions and tariff uncertainty dent the near-term investment and cast doubt on a broad-based earnings recovery this year, the strategists say. A 10% rise in the euro versus the dollar can reduce European earnings per share by about 2%, according to Citi. Commodities, food-and-beverage, healthcare, luxury and autos seem the most exposed sectors, Citi adds. (adria.calatayud@wsj.com)
0125 ET - European industrial companies are likely to be the main beneficiaries of a trade deal between the European Union and India, Goldman Sachs equity strategists say in a research note. Carmakers and suppliers of chemical products and electrical machinery seem the largest short-term winners from the agreement, according to GS. These are the sectors that currently face the highest tariffs in India and where EU exports remain underrepresented, the strategists say. As part of the deal, India will eliminate or sharply reduce tariffs on 96.6% of EU goods exports to the country, which should unlock opportunities for tariff-constrained sectors, GS says. (adria.calatayud@wsj.com)
2216 ET - Petronas Chemicals' 4Q core net loss could be higher than expected, given sequentially lower polymer, monoethylene glycol and urea prices, CGS International analyst Raymond Yap says in a note. A stronger ringgit against the dollar could also weigh on earnings, with expected forex translation losses of around MYR200 million in 4Q, he says. The 2026 outlook may remain challenging, with weak petrochemical prices, a 2Q turnaround at the second Kertih ethane cracker lasting 45-50 days, and Pengerang Refining Company operations running below optimal rates, he reckons. Planned late-4Q maintenance could further pressure earnings, he adds. CGS maintains a reduce rating on Petronas Chemicals while keeping its MYR2.94 target price. Shares are 1.5% lower at MYR3.34. (yingxian.wong@wsj.com)
1858 ET - While uranium miner Boss Energy's 2Q result was broadly in line with expectations, there were some negatives in the company's guidance that outweighed positive outcomes, says Ord Minnett. Boss reported 2Q output of 456,000 pounds of U308, a common compound of uranium. That was above consensus expectations of 409,000 lbs. Still, analyst Matthew Hope highlights a first mention of a legacy contract with pricing of some 65%-70% of spot. First deliveries under this contract are due to happen in the next six months. "This will go on for a few years as a total of 1.7 million lbs owed at max 250,000 lbs per annum, dragging down the realized price," Ord Minnett says. Boss is up 6.1% at A$1.91. (david.winning@wsj.com; @dwinningWSJ)
1810 ET - Alkane Resources' 2Q report shows a bumper quarter for the miner, with strong beats on output and costs, says MA Financial analyst Paul Hissey. Production of 43,663 ounces of gold equivalent compares to MA's 38,000-oz estimate. All-in sustaining costs of A$2,739/oz beat MA's estimate of A$3,309/oz. MA's target on the stock rises 19% to A$2.15/share. It reiterates a buy rating. "In our view, ALK presents attractive exposure to gold in a red-hot market whereby some of the larger (household) names screen as relatively more expensive," says Hissey. "A quick assessment of the impact of spot pricing on ALK reveals some compelling leverage." Hissey reckons Alkane could generate a further A$170 million in cash before the end of FY 2026, followed by roughly A$460 million more through FY 2027. Alkane Tuesday rose 3.1% to A$1.66. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
1440 ET - Gold futures close at a new high, with the front-month contract inching up less than 0.1% to $5,079.90 a troy ounce. It's the sixth consecutive session gold has risen, gaining nearly 11% in that time. The move comes ahead of tomorrow's rate decision from the Federal Reserve, with expectations that the Fed will keep rates unchanged. Silver falls 8.3% to $105.523/oz. By shedding nearly $10/oz, it's the largest one-day dollar drop seen in silver since 1980, this after it gained 14% Monday. (kirk.maltais@wsj.com)
1223 ET - Morgan Stanley feels a bit more cautious on aluminum producer Alcoa, which it downgrades from overweight to equal-weight. Alcoa's stock price has already risen so much that there isn't much room left for quick gains, the analysts said in a research note, noting that the stock is up nearly 50% since the beginning of December. While high aluminum prices are still helping the company, the market has already factored that good news into the current price, they add. Some expected wins for Alcoa, like turning old factories into data centers or getting trade exemptions for Canadian aluminum, are now facing delays or political hurdles. While Alcoa's fundamentals remain solid, the analysts say they believe the easy money has already been made for now.(amira.mckee@wsj.com)
(END) Dow Jones Newswires
January 28, 2026 12:20 ET (17:20 GMT)
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