The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0949 GMT - Rises in global bond yields remain largely the result of high oil prices, Julius Baer's Dario Messi says in a note. Yields are rising across all maturities as concerns grow about persistent energy-driven inflation, the head of fixed income says. Firmer-than-expected U.S. inflation data last week added to recent pressure on bonds, pushing 10-year Treasury yields back above 4.5%, he says. The 10-year Treasury yield last trades steady at 4.597%, Tradeweb data show. (emese.bartha@wsj.com)
0939 GMT - The tightening supply pipeline of China's property sector should help extend the recovery, HSBC Global Research analysts write in a note. Shenzhen's fast-declining inventories are already improving sell-through for premium projects, they add. Sold area has consistently exceeded new starts, rapidly drawing down stock that is under construction but not yet approved for sales, they say. Remaining inventory is increasingly skewed towards completed units and projects yet to commence construction, they add. HSBC Global Research still expects this year to be an inflection point, with prices stabilization and better sales in key cities, they say.(jiahui.huang@wsj.com; @ivy_jiahuihuang)
0934 GMT - The cost of default protection for euro-denominated credit climbs as investors exercise caution given prolonged Middle East tensions. Markets fear that oil-supply disruptions could last longer than previously expected as the U.S.-Iran conflict persists. The iTraxx Europe Crossover index of euro high-yield credit default swaps rises 2 basis points to 284bps, S&P Global Market Intelligence data show. The iTraxx Europe Main index of euro investment-grade CDS climbs 1bp to 59bps. (miriam.mukuru@wsj.com)
0855 GMT - Momentum looks set to take global yields higher and ING rates strategists see little reason to push against that trend for now. Oil prices are drifting up again while a near-term resolution to the Iran conflict is difficult to see, they say in a note. "Markets are starting to reconsider the idea of a short-lived inflation bout and are increasingly pricing in more lasting inflation," the strategists say. Recent eurozone inflation data suggest that price pressures are going beyond energy alone into other areas of the economy, the strategists say. (emese.bartha@wsj.com)
0802 GMT - European natural-gas prices break above 50 euros a megawatt-hour as traders see little sign of a resolution in the Middle East. "We have highlighted several times that the gas market is underpricing the scale of the supply impact from the Persian Gulf," analysts at ING say. "Asian buyers will need to enter the spot market to replace disrupted contracted cargoes from the Persian Gulf, increasing competition between Asian and European buyers." Meanwhile, storage across the European Union is at 36% of capacity, significantly below the five-year average of 50%. In early trading, the benchmark Dutch TTF front-month contract rises 2.4% to 51.36 euros a megawatt-hour. (giulia.petroni@wsj.com)
0755 GMT - Gold prices fall as stalled U.S.-Iran peace talks continue to fuel inflation concerns and push global bond yields higher, weighing on demand for non-yielding assets. In early European trading, gold futures in New York slip 0.3% to $4,549.10 a troy ounce and are down nearly 7% on the month. "The lack of progress toward a U.S.-Iran agreement and renewed threats from President Trump against Iran lifted oil prices further, increasing expectations that central banks may keep interest rates elevated or even raise them," says Soojin Kim from MUFG. Traders will now focus on the release of Fed meeting minutes for more cues on the rate outlook. (giulia.petroni@wsj.com)
0753 GMT - The euro could come under pressure if yields in long-dated eurozone government bond yields rise further, ING's Chris Turner says in a note. "High energy prices and now higher long-dated interest rates are a headwind to growth," he says. The risk of the European Central Bank looking through a temporary inflation spike could hit the long end of the bond market, he says. The ECB therefore needs to continue to signal potential rate rises. Any further selloff in long-dated bonds would drive the euro down to $1.1570, he says. The euro rises 0.1% to $1.1638. The 10-year German Bund yield rises to its highest since 2011 at 3.193%, according to LSEG data. (renae.dyer@wsj.com)
0748 GMT - Oil prices trim gains, though stalled efforts to end the Iran war and escalating tensions in the Middle East keep the risk premium high. In early European trading, Brent crude is up 0.7% to $110.05 a barrel, while WTI rises 0.7% to $101.77 a barrel. The benchmarks reached $112 and $104 a barrel, respectively, earlier in the session after a drone strike set off a fire near a nuclear-power station in the U.A.E. over the weekend. "The oil market continues to reprice ongoing supply disruptions, with last week's Trump-Xi talks yielding no tangible progress in the Middle East," analysts at ING say. "If anything, re-escalation risks are increasing." Meanwhile, the U.S. allowed a sanctions waiver that allowed countries to buy Russian seaborne oil to lapse despite tightening market conditions. (giulia.petroni@wsj.com)
0747 GMT - The Trump-Xi summit's Iran outcome is stronger than BofA Securities previously expected, the brokerage's economists say in a note. "While China has long supported openness in Hormuz given its trade and energy exposure, the degree of alignment in public messaging suggests a clearer convergence of interests, in our view," the economists say. Both sides "explicitly agreed" that Iran can never have nuclear weapons and that the Strait of Hormuz must stay open, according to U.S. officials, BofA adds. China also expressed interest in increasing its U.S. oil purchases to reduce its reliance on the Gulf over time, the brokerage says. (tracy.qu@wsj.com)
0731 GMT - European and U.K. airline stocks slumped in early morning trading as oil prices were up and Ryanair warned of weaker-than-expected summer pricing trends. Ryanair also fell short of providing profit guidance for the year. Higher oil costs stemming from the war in Iran and uncertainty around fuel supply are weighing on airline stocks. The price of Brent crude is up 1.6% at $110.90. Ryanair's stock fell 2.7%, TUI fell 2.2%, and Air France-KLM dropped 2.3%. (aimee.look@wsj.com)
0729 GMT - Yields on U.K. government bonds climb further due to concerns about high inflation given elevated energy prices. In addition, U.K. political volatility is causing investors to demand a risk premium on government bonds as leadership contenders emerge for Prime Minister Keir Strarmer's position. Investors are concerned about the U.K.'s fiscal outlook due to the risk that any replacement for Starmer could lean toward higher public sector spending and possibly higher debt. Ten-year gilt yields climb 2 basis points to 5.186%, highest since 2008, Tradeweb data show. (miriam.mukuru@wsj.com)
0723 GMT - London's miners decline on inflation and rate-hike concerns. Continued disruption of the Strait of Hormuz fuels inflation concerns that weigh on demand for non-yielding gold, MUFG's Soojin Kim writes. Gold fell nearly 4% last week with prices down around 15% since the U.S.-Iran conflict began, she adds. Silver futures are down 1.5% at $76.41 an ounce while gold falls 0.2% to $4,551.70 a troy ounce. Hochschild Mining is down 2.8% while Fresnillo slides 1.6%. Copper miner Antofagasta slips 1.2%, while diversified miner Anglo American slides 1.6%. (adam.whittaker@wsj.com)
(END) Dow Jones Newswires
May 18, 2026 05:49 ET (09:49 GMT)
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