The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0917 GMT - The euro continues to trade higher against the dollar after data showed eurozone inflation accelerated in line with expectations in May. Inflation rose to 3.2% year-on-year in May from 3.0% in April, as forecast by economists in a WSJ survey. Core inflation rose to 2.5% in May from 2.2% in April, slightly above the 2.4% expected. Ahead of the data, Commerzbank's Michael Pfister said the data were likely to have little impact on the euro given the absence of recent major surprises in previous prints. "As long as we do not see more pronounced surprises, the effect on interest rate expectations is likely to remain limited." The euro rises 0.1% to $1.1641, little changed from levels before the data.(renae.dyer@wsj.com)
0916 GMT - China's latest factory activity data suggests demand remains weak, according to BofA Securities in a research note. The May PMIs suggest growth remains supported by supply-side resilience while demand stays fragile, the economists say. "Manufacturing is holding up for now but gradually losing momentum," they say. Broader activity remains sensitive to weak demand and cost pressures, they note. Investors are closely watching the upcoming release of May activity data. Continued softness could make policymakers reassess conditions and recalibrate policy support, they say. (tracy.qu@wsj.com)
0915 GMT - Money and lending data in April show U.K. households proving resilient to Iran war disruptions, but weakness is around the corner, Paul Dales at Capital Economics says in a note. Consumer have so far largely absorbed the impact of higher energy costs by saving less rather than sharply cutting spending or increasing borrowing, he says. "Even so, we suspect a clearer weakening in real consumer spending growth and housing is just around the corner," he says. Retail sales have already fallen, and mortgage rates have already risen to 5% from around 4%. Still, a weak economic backdrop suggests inflation should remain in check. "We doubt the Bank of England will raise interest rates unless the Strait of Hormuz remains closed for many more months." (don.forbes@wsj.com)
0853 GMT - The March 2037 green gilt trades cheap on a relative value basis, making it attractive ahead of an auction of the bond at 0900 GMT, RBC Capital Markets strategists say in a note. Nonetheless, the green gilt is expected to be reopened on July 2, and there is potentially little time for the bond to see notable improvement before the next auction, the strategists say. "The gap to the next supply post the July 2 tap should be quite large however and [relative value] buyers may have to wait post that event to see a more sustained performance," they say. (miriam.mukuru@wsj.com)
0846 GMT - The dollar looks set to trade in a narrow range in the near term, ING's Francesco Pesole says in a note. A range of 99.0-99.50 in the DXY dollar index remains the comfort zone for now, he says. "That embeds lower oil prices but also reflects the broadly stronger [U.S. macroeconomic] backing for the dollar." Data this week could highlight the U.S. economy's strength, he says. The ISM manufacturing report on Monday exceeded expectations, showing a further expansion in sector activity in May. The focus now turns to the April jobs openings and labor turnover survey at 1400 GMT. The DXY falls 0.1% to 99.116. (renae.dyer@wsj.com)
0749 GMT - Yields on U.K. government bonds, or gilts, fall as investors expect an agreement between the U.S. and Iran could be reached in June, ending the closure of the Strait of Hormuz and easing the energy supply shock. U.S. President Trump said on Monday that Israel and Hezbollah had agreed to stop fighting while oil prices fall. "The market's default baseline still seems to be that a deal is coming and that traffic through the Strait of Hormuz will eventually normalise," Tickmill Group's Patrick Munnelly says in a note. Ten-year gilt yields fall 5.8 basis points to 4.841%, Tradeweb data show. (miriam.mukuru@wsj.com)
0734 GMT - Cummins India's steady demand outlook is likely tempered by margin challenges, Nomura analysts say in a research report. In its 4Q FY 2026 earnings call, management highlighted expectations of a stable demand environment in FY 2027, though margin headwinds are expected to persist, the analysts note. Management expects demand for the company's diesel and natural gas engines in India to stay steady, supported by a resilient macroeconomic environment and continued capex across key sectors. However, rising commodity prices and ongoing global geopolitical uncertainties are noted as challenges. Overall, management expects moderate growth across all segments in FY 2027. Nomura has a neutral rating and a target price of 6,000.00 rupees on the shares, which are 1.2% higher at 5,747.65 rupees. (ronnie.harui@wsj.com)
0732 GMT - European natural-gas prices fall after President Trump said negotiations with Iran were continuing at a rapid pace, though uncertainty about whether the two sides can ultimately reach an agreement is limiting losses. "The longer this continues, the more likely Asian buyers will need to enter the spot market to cover disrupted contracted volumes," ING analysts say. If that happens, Europe would face increased competition for LNG cargoes just as its gas-storage facilities are only about 40% full, well below the five-year average of 54%. At the same time, the current backwardation in the gas market--when front-month prices trade above winter contracts--is providing little economic incentive for traders and utilities to inject additional gas into storage ahead of winter. In early trading, the benchmark Dutch TTF contract is down 1.8% to 48.20 euros a megawatt-hour. (giulia.petroni@wsj.com)
0725 GMT - Oil prices slip as traders weigh mixed messages over the status of U.S.-Iran talks aimed at reopening the Strait of Hormuz and ending the conflict. In early European trading, Brent crude and WTI futures are both down 0.9% to $94.14 and $91.31 a barrel, respectively, after closing Monday's session more than 4% higher. "Oil price direction continues to be dictated by Iran-related headlines amid considerable uncertainty over how negotiations between the US and Iran are progressing," analysts at ING say. President Trump said talks were continuing "at a rapid pace" with Iranian leaders, while Tasnim--a semiofficial Iranian news agency--quoted anonymous sources suggesting that Tehran was suspending talks. (giulia.petroni@wsj.com)
0722 GMT - Eurozone government bond yields fall sharply in early trade, tracking U.S. Treasury yields lower as investors continue to bet on a peaceful resolution in the Middle East and the Strait of Hormuz reopening soon. The fall in yields reflects a fall in oil prices, with the price of Brent oil currently trading at $94 per barrel after U.S. President Trump said that Israel and Hezbollah had agreed to stop fighting. The 10-year Germany Bund yield falls 5.6 basis points to 2.953%, while yields on other 10-year eurozone bonds fall by more, according to Tradeweb. (emese.bartha@wsj.com)
0717 GMT - Bitcoin falls to near two-month low in the wake of news Strategy sold the cryptocurrency for the first time since 2022 and amid ongoing Middle East tensions. Strategy said Monday it sold 32 bitcoin last week for about $2.5 million. Meanwhile, the U.S. and Iran are yet to reach a peace deal while clashes continued in southern Lebanon despite Israel and Hezbollah agreeing a partial ceasefire. "Sentiment towards bitcoin has soured quite rapidly," Trade Nation analyst David Morrison says in a note. Bitcoin showed resilience during the first 10 weeks of the Iran war but investors now appear frustrated with the slow progress towards resolving the conflict, he says. Bitcoin falls 1.6% to as low as $69,961, LSEG data show. (renae.dyer@wsj.com)
0702 GMT - Nordic markets are seen opening slightly higher, with IG calling the OMXS30 up 0.5% at around 3110. President Trump wrote in a social media post that "it will all work out well in the end," but oil prices have risen sharply after Iran said it was suspending contact with the U.S. over Israel's continued attacks on Lebanon, SEB macro strategist Amanda Sundstrom writes. Trump also announced that Israel and Hezbollah had agreed to pause attacks on each other, despite Israel's Netanyahu signaling that attacks would continue. Stock markets in Asia are mixed this morning while futures point higher in Europe and lower in the U.S. OMXS30 closed at 3094.50, OMXN40 at 2662.75 and OBX at 1953.24. (dominic.chopping@wsj.com)
(END) Dow Jones Newswires
June 02, 2026 05:17 ET (09:17 GMT)
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