The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
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)
0650 GMT - The dollar eases after Lebanon announced a partial ceasefire between Iran-backed Hezbollah and Israel. The Lebanese embassy in the U.S. said it received confirmation of Hezbollah's acceptance of a U.S. proposal for it to halt attacks on Israel and for Israel to refrain from strikes on the Lebanese capital Beirut. The news comes after Iran's Tasnim news agency reported that Iran could suspend back-channel negotiations with the U.S. due to Israel's attacks on Lebanon. However, people familiar with the familiar with the talks told The Wall Street Journal the report wasn't true. The DXY dollar index falls 0.1% to 99.087. (renae.dyer@wsj.com)
0619 GMT - Seatrium's margin recovery remains intact despite muted order wins, says Morningstar's Chokwai Lee in a note. The analyst had anticipated slower order book momentum in 2026 amid a more competitive tender environment. The company doesn't expect visible drag from the U.S.-Iran war, with any costs for new contracts likely to be passed through and supporting Morningstar's 2026 gross margin estimate of 9.5%. This margin could move towards 11.5% by 2030 as legacy projects wind down, he adds. While higher oil prices from the conflict support offshore investment, order wins are likely to materialize gradually as customers remain disciplined on capital efficiency, he says, citing the company. Morningstar retains its fair-value estimate of 2.80 Singapore dollars. Shares are down 0.9% at S$2.10. (megan.cheah@wsj.com)
0544 GMT - India's data-center industry is likely emerging as one of the world's fastest growing, Nomura analysts say in a research report. This industry is poised to grow to around 7 gigawatts, at 2025-2030 CAGR of over 30%, the analysts estimate. Drivers are a large announced pipeline, rapid digitalization and rising cloud/artificial-intelligence adoption. The brokerage estimates incremental capacity of roughly 5.1GW until 2030 will provide a capital-expenditure opportunity of $35 billion. Nomura's top picks are CG Power & Industrial Solutions and GE Vernova T&D India, with buy ratings for both. It raises the target price for CG Power's stock to 1,050.00 rupees from 920.00 rupees and GE Vernova T&D's stock to 5,675.00 rupees from 5,030.00 rupees. CG Power recently traded at 901.95 rupees and GE Vernova T&D at 4,664.00 rupees. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
June 02, 2026 03:49 ET (07:49 GMT)
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