The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.
0826 GMT - Singapore's central bank is unlikely to tighten its monetary policy settings in the near term after its measure of core inflation unexpectedly eased in April, says Barclays' Brian Tan in a note. The April core consumer-price index rose 1.4% on year, below market expectations, he notes. While the drop was partly due to policy-related price adjustments in areas, such as health insurance, the April print will likely reassure the Monetary Authority of Singapore that inflation expectations are stable, he says. Barclays lowers its core inflation forecast to 1.7% from 1.9% for 2026--and to 1.8% from 2.0% for 2027. Barclays' base case is for no further adjustment to Singapore's monetary-policy parameters, although risks are still tilted towards tightening. (megan.cheah@wsj.com)
0802 GMT - Sun Pharmaceutical Industries' single-digit revenue growth guidance for FY 2027 appears too conservative, as the rupee's recent weakness should support its top line, according to Elara Securities' Bino Pathiparampil. The analyst thinks the Indian drugmaker could grow its FY 2027 revenue by 11.5%. The pharmaceutical company's recent acquisition of U.S.-based Organon is also likely to be earnings accretive, he says in a note, raising his FY 2028 core earnings-per-share forecast by 43%. However, he trims his FY 2027 core earnings projection by 8% on a weaker Ebitda assumption. The stock's recent performance suggests limited further gains, he adds. Elara Securities downgrades the stock to accumulate from buy and raises its target price to 2,085 rupees from 1,968 rupees. Shares fall 0.7% to 1,831.85 rupees. (megan.cheah@wsj.com)
0800 GMT - Expectations for the European Central Bank to raise interest rates look overdone after recent data point to a fragile eurozone economy, analysts at Natixis say in a note. "Current ECB pricing remains aggressive relative to the likely deterioration in the Eurozone growth outlook," they say. Last week's provisional eurozone purchasing managers' data for May were unexpectedly weak as high oil prices dented consumer and business sentiment. Eurozone money markets price an 80% chance of a 25 basis-point ECB rate increase in June and fully price in two increases by the end of the year, LSEG data show. (jessica.fleetham@wsj.com)
0731 GMT - Bitcoin rises due to prospects of a deal between the U.S. and Iran that could potentially lead to the crucial Strait of Hormuz being reopened. This boosts risk appetite and helps crypto assets. However, bitcoin's gains are small and it remains well below the key $80,000 level, keeping within its recent trading range. Uncertainty remains over Iran. President Trump said Sunday he was in no rush to complete a deal and that both sides had to "take their time and get it right." Investors are also cautious due to recent outflows from bitcoin exchange-traded funds, analysts at Saxo say in a note. Bitcoin rises 0.8% to $77,210, LSEG data show. (jessica.fleetham@wsj.com)
0718 GMT - Bitcoin edges higher in the Asian session amid positive market sentiment driven by U.S.-Iran deal hopes. Also, recent pullback in U.S. Treasury yields and dollar weakness have helped improve risk appetite to some extent, XS.com's Linh Tran says in an email. This provides "short-term support for liquidity-sensitive assets such as Bitcoin," the market analyst says. However, "the current positive signal remains largely a short-term reaction," Tran says. While Treasury yields have declined, they are still elevated, reflecting "continued market caution over inflation risks, borrowing costs, and the outlook for Fed monetary policy," the analyst adds. Bitcoin is 0.2% higher at $77,237.00, FactSet data show. (ronnie.harui@wsj.com)
0710 GMT - Eurozone government bond yields fall on prospects of a deal between the U.S. and Iran, which could allow oil to flow more freely. This would reduce inflationary pressures and ease pressure on the European Central Bank to raise interest rates. President Trump said Saturday that a deal was close to being finalized. A senior Trump administration official told reporters Sunday the agreement in principle is for Iran to reopen the Strait of Hormuz, although Trump also said he was in no rush to secure a deal. Trade is quiet due to holidays in much of Europe, while U.S. and U.K. markets are closed. The German 10-year Bund yield falls 5 basis points to an 18-day low of 2.987%, Tradeweb data show. (jessica.fleetham@wsj.com)
0658 GMT - Asia-Pacific banks' credit profiles could be somewhat buoyed by government policy and sovereign credit strength even as the Middle East conflict drives up energy prices, says Moody's Ratings in a note. Governments in the region are likely to continue or introduce measures, such as fuel subsidies or price caps, to cushion higher energy costs' drag on borrowers, the analysts say. This could reduce nonperforming loan formation at banks, they say. Governments could also support large and midsize banks via capital injections, fiscal measures or funding, to reinforce market confidence, the analysts say. However, direct support in some emerging markets could be constrained by fiscal limitations, they add. (megan.cheah@wsj.com)
0651 GMT - Gold prices rise on a weaker dollar and optimism that a potential breakthrough in U.S.-Iran peace negotiations could improve the inflation outlook. In early European trading, futures in New York are up 0.8% to $4,558 a troy ounce, while the U.S. dollar index slips 0.2% to 99.01, making dollar-denominated commodities cheaper for overseas buyers. Hopes for a deal that could reopen the Strait of Hormuz also pushed crude oil prices sharply lower, with Brent falling more than 5%. The drop has eased concerns that higher energy costs could reignite inflation and pressure the global economy. Still, gains in gold might remain limited. U.S. consumer confidence weakened sharply in May, while expectations that the Federal Reserve could raise interest rates continue to pressure non-yielding assets. (giulia.petroni@wsj.com)
0648 GMT - The dollar falls to a one-week low against a basket of currencies as oil prices drop on prospects of a deal between the U.S. and Iran. A U.S. official said over the weekend that an agreement in principle could lead to the crucial Strait of Hormuz being reopened. However, uncertainty remains. President Trump said Sunday that he was in no rush to complete a deal with Iran and that both sides had to "take their time and get it right." The DXY dollar index falls 0.2% to a low of 98.951. (jessica.fleetham@wsj.com)
0647 GMT - Japan's Nikkei Stock Average closed 2.9% higher at a record 65158.19 thanks to continued hopes for U.S.-Iran peace talks. Chip-related stocks led the gains with Kioxia Holdings surging 14% and Lasertec advancing 13%. The 10-year Japanese government bond yield fell 7 basis points to 2.690% as drops in crude oil prices eased inflation fears. Investors are focusing on developments in the Middle East after President Trump said Sunday he was in no hurry to complete an end-of-war agreement with Iran. The dollar is at 158.90 yen, compared with Y159.19 late Friday in New York. (kosaku.narioka@wsj.com; @kosakunarioka)
0631 GMT - The 10-year JGB yield is expected to reach around 3.1% by the latter half of fiscal 2027, which ends in March 2028, Daiwa Institute of Research economists say. Interest-rate hikes by the Bank of Japan and the effects of the reduction in the central bank's bond-buying program will likely drive up bond yields, they say. The yield could rise further if Prime Minister Sanae Takaichi's expansionary fiscal policies intensify concerns over inflation and if a potential increase in government bond issuance worsens the supply-demand balance, they add. JGB yields fall Monday amid a decline in oil prices. The 10-year JGB yield is last down 7.0 bps at 2.690%. (megumi.fujikawa@wsj.com)
0540 GMT - Tailwinds related to artificial-intelligence may continue to support Singapore's growth in 2Q and 3Q, says UOB's Jester Koh in a note. The tailwinds may also possibly fully offset any drags from energy and petrochemical input supply disruptions stemming from the Middle East conflict. Singapore's 1Q gross-domestic product growth saw a sharp upwards revision to 6.0% from 4.6%, exceeding UOB's estimates and market expectations. The economist raises his 2026 growth projection to 3.2% from 2.5% to incorporate the 1Q outperformance and sustained AI tailwinds, reflected in the improvement in Singapore's April electronics purchasing managers' index, he notes. However, he flags that the duration and extent of Mideast-linked supply disruptions could pose a risk to this view.(megan.cheah@wsj.com)
(END) Dow Jones Newswires
May 25, 2026 04:26 ET (08:26 GMT)
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