The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0943 ET - Core inflation in Canada picked up ever so slightly in May but remains contained, says Michael Davenport of Oxford Economics. Inflation excluding food and energy rose 0.1 percentage points to 1.6% year-over-year in May, which Davenport attributes to higher airfares and travel tours. "However, there were no signs of a significant broadening of inflation across the CPI basket," Davenport says. Bank of Canada Governor Tiff Macklem echoed a similar message this month while keeping the policy rate unchanged at 2.25%. Oxford expects headline inflation to hover below 3% for the remainder of 2026, but excess slack in the economy and a deceleration in housing costs should keep core CPI below 2%. The BOC sets rate policy to achieve and maintain 2% inflation. (Paul.Vieira@wsj.com; @paulvieira)
0916 ET - Canadian inflation heated up more than expected, hitting a more than two-year high 3.2% in May versus the 3% economists expected. The main driver was a spike in gasoline prices, which have risen three months running and were the highest in May since mid-2022 when Russia invaded Ukraine. Beyond the pump, price pressures were softer. Excluding gas, the consumer price index rose at a slightly faster 2.2% than April's 2%. The pace of traditional core inflation excluding food and energy ticked up to 1.6% on-year. And the average of the median and trim measures that are closely watched by the Bank of Canada held steady at 2.05%, remaining in line with the central bank's earlier projection for 2Q. (robb.stewart@wsj.com; @RobbMStewart)
0857 ET - CIBC Capital Economics says that May's inflation data for Canada likely represents a peak, with crude-oil prices retreating this month after an agreement between the US and Iran. Headline inflation in Canada accelerated in May, 3.2%, or slightly above consensus, powered by a sizable rise--33.2%--in gasoline prices. The key thing, the firm says, is that core CPI, which strips out volatile items, remains unchanged, near 2%. Core CPI is likely to accelerate in the months ahead, as air fares pickup and the World Cup in Toronto and Vancouver boost prices. But core CPI's low-starting point "should enable the Bank of Canada to look through any near-term acceleration," says economist Andrew Grantham, sticking to CIBC's call for BOC to keep its policy rate unchanged through 2026. (Paul.Vieira@wsj.com; @paulvieira)
0840 ET - Bitcoin rises on hopes for a final deal to end the Middle East conflict, although gains are limited with the cryptocurrency continuing to trade in a tight range. U.S. Vice President JD Vance said talks with Iran had laid a "very good foundation for a successful final deal." Earlier, the WSJ reported that Iran and the U.S. agreed to a mechanism to halt the fighting between Israel and Hezbollah which has become a stumbling block in peace negotiations. Bitcoin rises 1.7% to $64,857, according to LSEG. Speculative investors will be keeping a close eye on bitcoin to see if it can break above $65,000 again and rise to $70,000, Trade Nation analyst David Morrison says in a note. (renae.dyer@wsj.com)
0742 ET - CRH's valuation of Dallas-based Arcosa could worry investors, Bernstein's Pujarini Ghosh and Victor Acitores write. New York-listed CRH said it will acquire Arcosa in a deal valued at around $8.5 billion Monday. Given Arcosa's current market valuation of $6.7 billion, CRH's management will need to outline synergies in order to justify the price, the analysts say. However, the acquisition will complement the construction group's existing U.S. operations. Arcosa's asphalt and aggregates business adds to CRH's road-building business, they say. The tie-up could allow CRH to raise prices and expand margins, they add. (josephmichael.stonor@wsj.com)
0550 ET - U.S. Treasury yields rise while the dollar is stable as markets continue to bet on the prospect of tighter monetary policy by the Federal Reserve. At the same time, attention will also remain focused on the diplomatic talks between the U.S. and Iran, with both countries aiming at reaching a final agreement within 60 days, Exness' Li Xing says in a note. "Progress toward a deal could reduce demand for safe-haven assets and weigh on the dollar. However, caution could remain given the numerous setbacks that have characterised the negotiations in recent months," Xing says. The dollar is steady at 100.86. The 10-year Treasury yield rises 3.8 basis points at 4.489%, according to Tradeweb. (emese.bartha@wsj.com)
0531 ET - CRH's potential acquisition of U.S. construction group Arcosa will overlap with to the group's operations in the country, Jefferies's Glynis Johnson writes. The Ireland-based group is nearing a deal to buy Dallas-based Arcosa for over $8 billion, according to a report in the Financial Times. "Arcosa is largely focused in the U.S. with only limited exposure to Canada and Mexico, and appears to have significant crossover with CRH's U.S. operations," the analyst writes. The debt-driven acquisition would raise CRH's net debt to earnings ratio for 2026, though the analyst sees potential for the construction group to sell other assets. CRH shares are flat premarket. (josephmichael.stonor@wsj.com)
0450 ET - Siemens Energy opting to spin off its Transformation of Industry unit would likely be welcomed by the market given it has lower potential than its gas and grids businesses, Jefferies analysts write. There have been media reports management are considering such a move. Siemens Energy could divest 60% in a first move either through a spin-off or IPO, the analysts write. It could then retain 40% at least on an interim basis, they add. The unit produces compressor and steam turbines. Shares rise 0.7% to 170.10 euros. (adam.whittaker@wsj.com)
0409 ET - EDP-Energias de Portugal's integrated business is set to benefit from Iberian power-demand growth, Bernstein analysts write. The energy company is set to gain from electrification efforts, data-center expansion, and emerging green hydrogen projects, they note. Higher power demand puts a floor on wholesale prices, they write. Their hydropower plants, which have a long life cycle and generate high free cash flow, are underappreciated by the market, they write. Shares rise 0.8% to 4.443 euros.(adam.whittaker@wsj.com)
0403 ET - European natural-gas prices rise as traders weigh progress in U.S.-Iran negotiations and await details on damage to a key gas facility in Qatar following an explosion. In early trading, the benchmark Dutch TTF contract is up 1.5% to 42.67 euros a megawatt-hour. President Trump on Sunday threatened Iran over its support of Lebanese faction Hezbollah, causing a flare-up in tensions. On Monday, however, mediators Pakistan and Qatar said the two sides agreed on a roadmap to reach a final deal within 60 days. Separately, a blast struck Qatar's Barzan gas supply facility as the country works to restore LNG exports disrupted by the war. "As we move deeper into the injection season and closer to the 2026/27 winter, the European gas market will become increasingly sensitive to developments in the Middle East," ING analysts say, particularly given that EU storage levels remain well below seasonal norms. (giulia.petroni@wsj.com)
0343 ET - Austrian oil-and-gas company OMV will benefit from higher energy prices, which it can use to fund the transformation of its chemicals unit, Baader Helvea's Frederic Lorec writes. The brokerage increases the stock's target price to 71.5 euros from 63.4 euros. It also revises upward its earnings per share forecast for 2026 to 6.53 euros from 6.44 euros due to stronger commodity prices. However, it moves EPS expectations for 2027 lower, to 5.46 euros from 6.66 euros previously. Shares trade 0.2% higher at 56 euros.(adam.whittaker@wsj.com)
0332 ET - Despite the recent memorandum of understanding between Iran and the U.S., the effects of the Middle East war continue to pose a risk to the United Arab Emirates' economic outlook, S&P Global Ratings says in a note. That said, the anticipated opening of additional hydrocarbon export routes, a likely increase in oil production from 2027, and the UAE government's large fiscal and external buffers in the form of sovereign wealth fund assets and foreign exchange reserves could all support a period of recovery, the ratings firm says. Although not S&P Global Ratings' base case, a resumption of the war could lead to uneven recovery across sectors and could have a severe credit impact on the UAE. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
June 22, 2026 09:43 ET (13:43 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments