The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
1014 GMT - Investor stock-market exuberance returned this month as fund managers recorded the biggest monthly increase in their allocations to stocks on record, according to Bank of America's Global Fund Manager survey. The proportion of money managers who bet that stocks would outperform other assets jumped by 40% in May--the largest rise on record. The increase follows a sharp decrease in equity allocations last month after market sentiment soured on the fallout from the U.S.-Iran war. Investor sentiment recovered to February 2026 levels, with fund managers increasingly drawn to riskier assets. As stock allocations increased, allocations to cash--a traditional safe-haven asset--saw their largest monthly drop since February 2024, the survey found. (josephmichael.stonor@wsj.com)
1009 GMT - Pessimism on global growth drops, with global investment sentiment in May recovering to its highest level since February, Bank of America's global fund manager survey says. Currently only 4% of investors predict a "hard landing" of the economy--or a sharp economic slowdown or even recession--, the survey says. The survey also reveals a record jump in investors expecting double-digit EPS growth while concerns over Iran are subdued, with 66% expecting the bottleneck with the Strait of Hormuz to end in the next few months, BofA says in a press release accompanying the survey. (emese.bartha@wsj.com)
1005 GMT - Prospects of U.S. interest-rate rises due to high energy prices are supportive for the dollar, The Revacy Fund's Zaheer Anwari says in a note. "Persistent inflation pressures are pushing markets towards a higher-for-longer view on rates," the co-founder and CEO says. U.S. money markets fully price in a 25 basis-point rate increase by the Federal Reserve by March 2027 and a 62% chance of an increase by the end of 2026, LSEG data show. For now, both the dollar index and oil continue to trade within ranges, reflecting the broader uncertainty in global markets, he says. The DXY dollar index rises 0.1% to 99.25. (emese.bartha@wsj.com)
0940 GMT - U.S. Treasury yields stay edge lower while the dollar turns slightly higher. President Trump's announcement of a delay to a planned military strike against Iran to allow negotiations to proceed improves sentiment, but uncertainty remains, The Revacy Fund's Zaheer Anwari says in a note. "The lack of clarity around diplomatic progress and the risk of renewed escalation are still keeping markets cautious," he says. Persistent disruption in the Strait of Hormuz could keep oil prices elevated too, reinforcing inflation concerns and sustaining upward pressure on Treasury yields, the co-founder and CEO says. The 10-year Treasury yield falls 1.2 basis points to 4.610%, although 30-year yields edge slightly higher, according to Tradeweb. The DXY dollar index edges up 0.1% to 99.281. (emese.bartha@wsj.com)
0911 GMT - Yields on U.K. government bonds, or gilts, and sterling fall after the latest U.K. labor market data showed fragility in the jobs market. The unemployment rate increased to 5.0% in the three months to March. Average wage growth, excluding bonuses, also slowed to 3.4% in the three months that ended in March, from 3.6% in the three months to February. The data reduce prospects of the Bank of England raising interest rates in the coming months to tackle inflation, MUFG's Lee Hardman says in a note. Ten-year gilt yields fall 7 basis points to 5.068%, Tradeweb data show. Sterling falls 0.3% to $1.3394. (miriam.mukuru@wsj.com)
0904 GMT - Near-term volatility in bond yields could keep markets on edge but current attractive yields and growth risks point to an appealing risk-return profile for short- and medium-maturity quality bonds, UBS Global Wealth Management's Mark Haefele says in a note. "Yield volatility is likely to pick up further the longer the Strait of Hormuz remains closed, with markets pricing the upside risks to inflation and tighter monetary policies across the world," the CIO says. However, UBS GWM maintains the view that quality bonds offer an appealing risk-return profile given two-sided risks of inflation and growth. "We also do not expect higher yields to derail the current equity rally," Haefele adds. (emese.bartha@wsj.com)
0812 GMT - London-listed miners fall in early morning trade as metal prices cool. Downward pressure on gold and silver prices comes as potentially higher interest rates loom amid the Middle East conflict. Gold futures in New York are down 0.2% at $4,549.30 a troy ounce. Silver is down 1.4%. Three-month copper futures on the LME fall 0.3%, with analysts at ING saying that the drop in copper is due to inflation concerns linked to the Iran war, and weaker Chinese data. "The pullback comes after a strong run, with prices slipping from the recent highs hit just last week amid intensifying macro headwinds," the analysts write. Glencore falls 2.4%, Anglo American is down 2.4% and Rio Tinto falls 2%. Precious metals miner Hochschild is down 2.4% and Fresnillo is down 2.7%. (aimee.look@wsj.com)
0806 GMT - The coming couple of weeks could be a sweet spot for a deal in the U.S.-Iran conflict, Jefferies' Mohit Kumar says in a note. "We are optimistic," the global economist says. Higher oil prices are hurting the U.S. consumer, while the blockade has dried up the oil revenue for Iran, he says. Both sides want the current stalemate to end, but in a manner that either side can claim victory, Kumar says. With the Trump-Xi summit out of the way, "a path has opened for some version of an agreement," Kumar says. (emese.bartha@wsj.com)
0754 GMT - European natural-gas prices hold above 50 euros a megawatt-hour as the Iran war drags on, fueling concerns over global supply. A tightening LNG market is already starting to weigh on Europe, with imports down 7% on year last month, as more shipments are being redirected to Asia due to supply shortages, according to ANZ analysts. Meanwhile, potential disruptions at Australia's Ichthys LNG plant due to a planned strike could worsen the situation and affect key buyers like Japan and Taiwan. The benchmark Dutch TTF front-month contract is up 0.5% to 50.49 euros a megawatt-hour. (giulia.petroni@wsj.com)
0742 GMT - Copper prices fall in early European trading, pressured by inflation concerns and weaker Chinese data. "The pullback comes after a strong run, with prices slipping from the recent highs hit just last week amid intensifying macro headwinds," analysts at ING say. U.S.-Iran tensions and higher oil prices have increased fears of persistent inflation and stricter monetary policy, which could hurt global growth and industrial demand. Meanwhile in China, softer activity in investment, retail and industrial output added to concerns about the demand outlook. Three-month copper futures on the LME are down 0.3% to $13,544.50 a metric ton. Despite the retreat, prices are up more than 8% year-to-date, supported by tech-related demand and supply constraints. (giulia.petroni@wsj.com)
0727 GMT - Yields on U.K. government bonds fall after weak U.K. labor market data reduce the chances of the Bank of England increasing interest rates in the coming months. U.K. average wage growth, excluding bonuses, slowed to 3.4% in the three months to March, from 3.6% in the three months to February. "Absent a further surge in oil prices, it is hard to see interest rates being increased much if at all in this environment," Aberdeen's Luke Bartholomew says in a note. Ten-year gilt yields fall 7 basis points to 5.069%, Tradeweb data show. (miriam.mukuru@wsj.com)
0724 GMT - Oil prices recoup some losses following a 2% slide after President Trump said he would hold off on a planned U.S. attack on Iran to make room for peace negotiations. Brent crude falls 1.6% to $110.32 a barrel, while WTI futures are down 0.5% to $103.9 a barrel. "The oil market continues to trade in wide ranges, and it remains extremely sensitive to Iran-related headlines," analysts at ING say. "ICE Brent traded almost in a $6/bbl range yesterday." Meanwhile, the U.S. extended a sanctions waiver allowing countries to purchase Russian oil currently stranded at sea for another 30 days--a move that analysts say will be welcomed by Asian buyers, who are more exposed to supply disruptions in the Middle East. (giulia.petroni@wsj.com)
(END) Dow Jones Newswires
May 19, 2026 06:14 ET (10:14 GMT)
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