The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0905 GMT - Soitec's demanding valuation already reflects the opportunity from AI for the French semiconductor-materials maker, Berenberg's Trion Reid writes in a research note. Revenue from the edge and cloud AI business will exceed sales in the mobile communications segment by the fiscal year through March 2028, Reid notes. However, Soitec's stock jumped more than fivefold since the year began and has more than doubled over the past 12 months. "The photonics-related story is exciting, but we believe that this is more than reflected in the current price, with risks relating to the ongoing smartphone-related weakness and potential competition from GlobalWafers appearing to be largely overlooked." Soitec shares trade 13% lower at 122.50 euros. (mauro.orru@wsj.com)
0902 GMT - The pullback in Korea's benchmark Kospi, one of the clearest global expressions of the AI trade, suggests investors are reassessing how much future growth is already embedded in prices, says Patrick Munnelly at Tickmill Group. The Kospi ended down 4.5% as chip stocks gave back gains. Semiconductor and tech-related losses also pulled down Taiwan's Taiex and Japan's Nikkei, which finished 3.3% and 1.9% lower, respectively. That seems to reflect a shift in sentiment: Munnelly notes that earlier in the year, investors were willing to buy every dip in the chip complex, treating AI capex as a structural force strong enough to offset geopolitics, higher yields and valuation concerns. "That confidence has weakened." (fabiana.negrinochoa@wsj.com)
0843 GMT - Chinasoft International's 1 billion yuan in deals to supply high-end artificial-intelligence computing equipment signal significant early commercial validation of its new computing-power business strategy, say Citi Research's Kyna Wong and Yiming Li in a note. The Chinese software-outsourcing company laid out three monetization models across hardware resale, compute leasing and token sales in its strategy. The deals suggest early-mover commercial traction on the hardware-resale model, the analysts say. Citi retains its neutral rating and HK$3.50 target price. Shares closed 0.3% higher at HK$3.92. (megan.cheah@wsj.com)
0839 GMT - Soitec's stock has jumped far ahead of what can be considered fair value, Jefferies analysts write in a note to clients as they downgrade their recommendation on the company to underperform from hold. Shares in the French semiconductor-materials maker climbed more than fivefold since the year began and have more than doubled over the past 12 months. However, revenue is expected to grow less than expected in the coming years, analysts say. They estimate revenue growth of 6.5%, 16.5% and 20% in the fiscal years through March 2027, 2028 and 2029, against Visible Alpha consensus of 6.3%, 31.1% and 34.6%, respectively. Soitec shares trade 13% lower at 122.20 euros. (mauro.orru@wsj.com)
0839 GMT - WH Smith's apparent strengths have been swept away as the company's situation is only getting worse, Interactive Investor's Richard Hunter writes in a note. The seller of stationery, books and magazines in airports and train stations has issued a profit warning and plans to raise capital, involving up to around 26 million new common shares of the company. "The capital raise comes at a time which will severely test investors' patience and loyalty to the cause," he says. Further investment in WH Smith will need a leap of faith, as declining consumer confidence has weighed on per-passenger spending, the reduction in the number of flights to the U.S. has affected airline capacity, and the conflict in the Middle East has slowed the group's overall progress, he adds. Shares are down 18% at 4.03 pounds. (najat.kantouar@wsj.com)
0818 GMT - SK Hynix's planned U.S. listing--possibly as early as August--through the issuance of American depositary receipts could narrow its valuation gap with rival Micron Technology, Meritz Securities' Kim Sun-woo says. The ADR listing could also pave the way for the South Korean memory-chip maker's inclusion in the Philadelphia Semiconductor Index, a U.S. chip benchmark tracked by global passive funds, potentially prompting a re-rating of the stock. Meritz expects SK Hynix to continue delivering strong earnings on robust chip demand and tight supply despite output increases, projecting operating profit of 66 trillion won in 2Q and 270 trillion won in 2026.(kwanwoo.jun@wsj.com)
0813 GMT - Gold slides 2% as fresh U.S.-Iran strikes raise fears that a prolonged conflict and higher oil prices could fuel inflation and prompt interest-rate hikes by the Federal Reserve. The U.S. launched military strikes Tuesday against Iran in response to the downing of a U.S. Apache helicopter near the Strait of Hormuz, while Iran's Islamic Revolutionary Guard Corps launched a drone attack on the U.S. Fifth Fleet in Bahrain. The latest escalation has increased uncertainty over prospects for a peace agreement and gradual reopening of the Strait, a critical artery for global energy shipments. "The precious metal is now roughly 20% below its pre-conflict level, with additional selling pressure emerging after prices fell below key technical support levels closely watched by investors," analysts at MUFG say. In early trading, New York gold futures are down 2.3% to $4,185.70 a troy ounce. (giulia.petroni@wsj.com)
0815 GMT - Oversea-Chinese Banking Corp.'s return on equity is likely to rise, following its recent acquisition of HSBC's retail banking and wealth-management operations in Indonesia, CGS International analysts say in a note. The asset-light nature of the business with a small loan book in the retail segment and a much larger deposits business will help limit credit exposure while enhancing OCBC's overall return-on-equity profile. CGS International raises its rating for the stock to add from hold, and lifts the target price to 26.00 Singapore dollars from S$23.30. Shares are last 2.35% lower at S$23.24. (amanda.lee@wsj.com)
0806 GMT - Klepierre's profile is attractive, combining high income predictability with favorably low financial leverage, Berenberg analysts Kai Klose and Yudith Karunaratna say in a research note. As both of these parameters are even more important in the current environment, with interest rates likely to stay higher for longer, the French shopping-center operator remains the go-to choice in prime European malls, the analysts say. Klepierre is expected to remain selective in terms of further acquisitions, they add. Shares trade 1.4% higher at 36.08 euros. (nina.kienle@wsj.com)
0759 GMT - Oil prices edge higher after the U.S. launched military strikes against Iran in retaliation for the downing of a U.S. Apache helicopter near the Strait of Hormuz. In early European trading, Brent crude is up 0.4% to $91.84 a barrel, while WTI futures rise 0.2% to $88.38 a barrel. "The latest escalation threatens to prolong restrictions on traffic through the Strait of Hormuz, a critical route for global oil and gas exports, while declining U.S. crude inventories underscore tightening supply conditions," analysts at MUFG say. "Going forward, developments in US-Iran negotiations, security conditions around Hormuz, and the pace of inventory drawdown will be key drivers of oil market sentiment." Traders now await the latest data on U.S. crude stockpiles due later on Wednesday. (giulia.petroni@wsj.com)
0755 GMT - Some Singapore-listed companies could be hurt by the forced labor-related tariffs proposed by the U.S., DBS Group Research says in a commentary. Singapore's Ministry of Trade & Industry estimates that around one-third of the city-state's U.S. exports could be affected, as these proposed tariffs affect around 60 economic sectors, the DBS analysts note. Aztech Global faces the most uncertainty, as it derives 74%-80% of its revenue from North America with products manufactured in China. About 12.5% of Frencken Group's revenue comes from the U.S., although its semiconductor segment-which is exempted-could provide a buffer, the report adds. Venture's life science and test and measurement segments also face tariff risks, but the U.S. revenue exposure of these businesses is undisclosed. (megan.cheah@wsj.com)
0746 GMT - AI advancements have likely had a modest positive impact on U.S. employment, based on the latest jobs data, Capital Economics' Stephen Brown says in a note. "We are now beginning to see clearer positive effects of the data centre buildout on manufacturing and non-residential construction payrolls," he says. Since the start of the year, jobs in non-residential construction and manufacturing industries linked to data centre build-out have notably increased, Brown says. "At the micro level, several recent [U.S. Federal Reserve] papers fail to find evidence that AI use is causing any noticeable labor market weakness." (miriam.mukuru@wsj.com)
(END) Dow Jones Newswires
June 10, 2026 05:05 ET (09:05 GMT)
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