The latest Market Talks covering the Auto and Transport sector. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0736 GMT - Malaysia's auto sector could be weighed by still-elevated crude oil prices, potentially softening consumer spending and discretionary purchases, despite expectations that a permanent Iran war cease-fire scenario will prevail, RHB IB analyst Iftaar Hakim Rusli says in a note. Tighter loan approvals and concerns over weaker disposable income from higher fuel prices could weigh on near-term demand for discretionary purchases, he says. He cuts his 2026 Malaysia auto sales forecast to 780,000 units from 805,000 units. RHB maintains a neutral stance on Malaysia's auto and auto parts sector, recommending investors adopt a wait-and-see approach and remain selective by accumulating on share price weakness and focus on earnings visibility. It pegs Sime Darby as its top pick. (yingxian.wong@wsj.com)
0626 GMT - SIA Engineering's medium-term growth prospects remain solid, although its FY 2027 earnings could be moderately hit by the Iran war, CGS International analyst Raymond Yap says in a note. The war has raised diesel costs for the aircraft-services provider's heavy vehicles at airports. However, SIA Engineering highlighted that its base maintenance slot bookings from its airline customers have not been rescheduled, the analyst notes. The company also noted that airlines which usually use Middle East maintenance, repair and overhaul services have started talking to SIA Engineering about potential future business. CGS International lowers the stock's target price to S$3.80 from S$4.00 but maintains an add rating. Shares are 0.9% lower at S$3.25.(amanda.lee@wsj.com)
0522 GMT - Regarding Iran, the narrative around the meeting between U.S. President Trump and Chinese leader Xi Jinping seems to be one where China is expected to pressure Iran to open the Strait of Hormuz in exchange for de-escalation from the U.S., Natixis Investment Managers' Jack Janasiewicz says in a note. "China has seemingly avoided involvement in the matter and is likely to retain this posture going forward," the portfolio manager says. "No need to drag themselves into this quagmire." Natixis IM doesn't see the meeting as much of a market-moving event. "Should there be some progress on easing technology restrictions, this could provide a catalyst for a further move higher in the semiconductor complex." (emese.bartha@wsj.com)
0237 GMT - Near-term weakness seen in earnings of Malaysia's offshore support vessel sector should be overlooked, Maybank IB analyst Jeremie Yap says. He says investors should instead position for the sector's 2027 capital expenditure upcycle theme. Seasonal monsoon conditions from November to March typically reduce offshore activity, leading to lower vessel utilization in 1Q, he says, adding Keyfield and Perdana Petroleum are expected to be affected. However, a multi-year capital expenditure upcycle by Petronas is expected to begin in 2027, which is likely to benefit key names in the sector. Yap maintains a positive view on the Malaysian oil and gas sector, pegging Keyfield and Perdana Petroleum as its top picks. (yingxian.wong@wsj.com)
0228 GMT - China's auto sales growth will likely recover in the coming months, especially for electric vehicles and plug-in hybrids, says Daiwa analyst Kelvin Lau. Market momentum has improved in recent weeks, compared with early 2026, as reflected in weekly orders. Recent new and updated models, such as XPeng's Mona M03, Leapmotor's A10 and D19, NIO's ONVO L80, and Xiaomi's SU7, will likely drive the improved volume recovery, Lau says. Chinese automakers' increasing focus on exports may lead to further sector rerating, he adds. The analyst notes investors' interest in Chinese automakers' overseas expansion at the Beijing Auto Show in April. Investors have shifted their focus to overseas markets, given low expectations for the domestic market, Daiwa adds. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
1934 GMT - The demise of Spirit Airlines has limited credit impact for most U.S. airports, but the effect is more severe for Atlantic City Airport, Fitch notes. Spirit accounted for about 76% of traffic there as of March 31. Fitch places South Jersey Transportation Authority's senior and subordinate transportation system revenue bonds on Rating Watch Negative. The SJTA's Atlantic City Expressway "is expected to generate sufficient toll revenue to provide a financial cushion while also supporting ACY," the rating firm says. Breeze Airways, which debuted in Atlantic City last week, recently announced plans to expand there, including an Orlando daily route set to begin July 3. (josh.beckerman@wsj.com)
1816 GMT - Demand for new vehicles has declined year-over-year for the seventh consecutive month as gas prices continue to rise, according to a new report from CarGurus. Affordability pressures are shaping the market for car-buying, the report says. The average listing prices of new vehicles rose 1% to cross back over $50,000 in April while overall new car demand fell 8%. The share of lower-priced inventory meanwhile is shrinking, the report says. Demand for used vehicles picked up earlier this year but has since moderated and slipped in April. Interest in electric vehicles and hybrids has picked up in the wake of rising gas prices, the report says. (dean.seal@wsj.com)
1300 GMT - Airfares rose 2.8% in April, after rising by 2.7% in March. Higher fuel costs amid the war in Iran have accelerated price increases for airlines. Overall, airline ticket prices are up 21% from a year ago. That is the fastest 12-month increase since early 2023. (matt.grossman@wsj.com; @mattgrossman)
1241 GMT - Oil prices extend gains, rising more than 3%, as a fragile U.S.-Iran cease-fire and deeply divided positions on ending the war stoke fears of a prolonged energy supply shock. In afternoon European trading, Brent crude rises 3.5% to $107.88 a barrel, while WTI is up 3.5% to $101.50 a barrel. "We doubt that there will be any change in the diplomatic deadlock between Iran and the U.S. in the near term, as the President and his team turn their focus to China and Wednesday's summit," says Kathleen Brooks from XTB, adding no major developments are expected over the next day or two that would ease upward pressure on oil prices. (giulia.petroni@wsj.com)
1104 GMT - Rheinmetall's share price has fallen about 40% from its 2025 peak, offering an entry point for new investors that hasn't been available for a long time, MWB Research's Jens-Peter Rieck says. The final trigger for the drop was remarks by the German company's Chief Executive Armin Papperger during the latest earnings call, when he talked about a structural shift toward cheaper drones and a potential peak in defense spending in the 2030s, Rieck says in a note. Neither is a new risk and both are already included in MWB Research's assumptions, Rieck adds. Papperger bought over 1 million euros worth of shares last week, supporting the bull case again, he notes. MWB Research upgrades Rheinmetall's stock rating to buy from hold and keeps its previous price target of 1,450 euros. Shares are down 3.8% at 1,140.40 euros. (cristina.gallardo@wsj.com)
1033 GMT - Yields on long-dated U.K. government bonds, or gilts, surge to multi-year highs as domestic political uncertainty is compounded by rising oil prices. U.K. Prime Minister Keir Starmer faces heavy pressure to resign after his party's poor performance in last week's local elections. This raises concerns that any successor could favor increased government spending. For now Starmer has vowed to stay on. Concurrently, elevated oil prices add inflationary pressure to a gilt market "already frazzled by concerns that a different U.K. Prime Minister might take a different view on borrowing," says Hargreaves Lansdown's Anna Macdonald. Oil prices rise as U.S.-Iran talks remain at a stalemate. Ten-year gilt yields are last up 10 basis points at 5.098%, Tradeweb data show. (jessica.fleetham@wsj.com)
0909 GMT - Although Wizz Air's guidance boost will likely be taken positively, it isn't clear that it will translate into forecast upgrades for fiscal 2027, RBC Capital Markets analysts Ruairi Cullinane and Jakub Glinkowski say. This is given the expected fuel price headwind and some uncertainty around pricing, the analysts say. Geopolitics offers both upside potential and downside risk for the budget airline, but the analysts see more attractive risk-reward elsewhere in the sector. "We are cautious on the outlook into fiscal 2027 given poor earnings quality in fiscal 2026 estimates, higher exposure to the Middle East and jet fuel, low margins, and less scope to pass on fuel headwinds in short-haul." Shares are down 1.6% at 998 pence. (anthony.orunagoriainoff@dowjones.com)
(END) Dow Jones Newswires
May 13, 2026 04:20 ET (08:20 GMT)
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