The latest Market Talks covering Energy and Utilities. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0658 GMT - RWE's 3.6 billion-euro deal for an additional 35% stake in the transmission grid operator Amprion confirms the valuation gap between public and private markets, Baader Helvea's Pierre-Alexandre Ramondenc writes. The deal value is surprising, he adds. "Listed European network operators continue to trade at a premium to the valuations that corporates and institutional investors appear willing to pay in private transactions," he says. The implied valuation of 1.07 times its 2027 regulated asset base is highly attractive versus listed peers, he adds. Shares closed Tuesday at 55.64 euros. (adam.whittaker@wsj.com)
0657 GMT - Adani Power's asset portfolio is likely high growth, lower macro risk and return accretive, backed by a track record of executing complex projects, Morgan Stanley analysts say in a research report. This is a rare combination which merits closer attention by markets, the analysts say. The Indian thermal power producer will probably make annuity returns on most of its 24 gigawatt capacity under construction, the analysts say. Morgan Stanley forecasts the company's Ebitda CAGR at 24% during FY 2026-2032 and expects strong return-on-capital-employed expansion to 20% by FY 2032. It raises the stock's target price to 275.00 rupees from 173.00 rupees, with an unchanged overweight rating. Shares are 1.4% lower at 229.60 rupees. (ronnie.harui@wsj.com)
0441 GMT - Thermal-coal prices are likely to remain supported despite easing Middle East tensions, says Bank of America, citing a fresh tailwind from what is forecast to be a strong El Nino. Australian Newcastle coal climbed above $150/metric ton earlier this month, to a roughly two-year high. "While the market has softened recently amid easing tensions in the Gulf," the El Nino weather pattern is "typically associated with hotter and drier conditions across parts of South and Southeast Asia and should underpin incremental coal burn," BofA says. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
Refining margins are likely to remain elevated for some time, benefiting Viva Energy, says Jefferies. That's because it will be a while before crude oil and oil product supply normalizes and inventories are replenished, analyst Michael Simotas says. "Notably, U.S. oil sanctions waiver this week allows Iran to transact in U.S. dollars (expires 21 August)," Jefferies says. This likely reduces the discount for Iranian crude that Chinese refineries have been purchasing. "We believe this is positive for regional refining margins," Jefferies says. It estimates Viva Energy's Geelong Refining Margin at US$14.60 per barrel in 2H, below market consensus expectations of US$16.00 per barrel. Jefferies retains a hold call on Viva Energy. (david.winning@wsj.com; @dwinningWSJ)
2258 GMT - Pipeline owner APA Group gets a new bull in Citi, which lauds its secure, high margin, CPI-linked income and strong customer base. Citi starts coverage of APA with a buy call and A$11.10/share price target. "With gas expected to play an important role in Australia's energy transition, we see scope for expansion and further pipeline capacity," analyst Suraj Nebhani says. He points to the potential for APA to expand its footprint in Australia's Beetaloo basin. "Behind the meter power solutions for data centers is a potential growth avenue, via the contract power generation business developing gas and renewable power projects," Citi adds. APA ended Tuesday at A$10.36. (david.winning@wsj.com; @dwinningWSJ)
1910 GMT - Oil futures settle lower in a cautious market as investors weigh a possible flood of oil out of the Middle East against the risk of U.S.-Iran talks running into obstacles. Energy markets are pricing a partial normalization rather than a complete return to pre-war conditions, Siebert Financial's chief investment officer Mark Malek says in a note. He sees the market assigning "too much confidence to a favorable outcome" and too little weight to the risks around unresolved nuclear issues and inspection disputes. "The most likely outcome is neither a breakthrough nor a collapse but a prolonged period of managed uncertainty that keeps a modest risk premium embedded in energy prices," he adds. WTI settles down 0.9% at $73.21 a barrel and Brent falls 1.1% to $77.08. (anthony.harrup@wsj.com)
1812 GMT - The slide in tech stocks looks like repositioning as positive macro data prompt a move to cyclical parts of the economy, says David Russell, global head of market strategy at TradeStation. "We're at the end of the best quarter that tech stocks have had this century. There's a lot of chopping and consolidation," he says. "My sense is we're seeing a shift away from a lot of the tech, not because it's overall bad but because it's a quarter end, and we're starting to see a real argument in favor of things like banks and retail stocks and some of the consumer non-growth stocks." Those could benefit if there is a sustained drop in oil and diesel prices that lower inflation and the market starts to see a potentially less hawkish or somewhat dovish Fed, he adds. (anthony.harrup@wsj.com)
1505 GMT - Bank of Canada Governor Tiff Macklem says he expects the Canadian economy to return to growth mode after two straight quarters of contraction. However, he tells an audience in Paris that growth would be modest. "The economy is weak," he says during an question-and-answer session after a speech focused on global imbalances. He says the uncertainty posed by US trade policy and hefty tariffs on specific sectors such as steel, aluminum, automobiles and forest products are weighing on economic activity, in particular business investment--which has declined for five straight quarters.(paul.vieira@wsj.com; @paulvieira)
1407 GMT - Bank of Canada Governor Tiff Macklem says the deal reached between the US and Iran to end the conflict and get crude oil moving through the Strait of Hormuz is a welcome development for the global economy. "Global energy prices have begun to come down, though much remains to be worked out," says Macklem, in a brief mention in a speech focused on global imbalances. Inflation accelerated in Canada in May to its highest level since 2023, fueled by rising gas prices. Economists argue the immediate pullback in energy prices should lead to a softening in headline inflation, providing further comfort to the BOC given that core CPI appears contained. (paul.vieira@wsj.com; @paulvieira)
1334 GMT - Oil futures are lower as the U.S. waives sanctions on Iranian oil, which along with a reopening of the Strait of Hormuz is seen freeing more oil into the market. Further price weakness can't be ruled out as the market focuses more on the loosening of oil balances than on the drop in oil stocks to "critically low levels" which could continue for several weeks, Ritterbusch & Associates says in a note. "Once the sharp supply downtrend begins to reverse, the process of refilling both commercial and SPR storage will provide a source of support through the rest of this year and well into next as far as the SPR is concerned." WTI is off 0.6% at $73.41 a barrel as the August contract debuts at the front of the curve. Brent is down 0.7% at $77.33 a barrel.(anthony.harrup@wsj.com)
1316 GMT - Treasury yields cool down a little while the dollar rises as U.S.-Iran talks inch forward. Crude prices slip, as the U.S. cleared the way for Iran to sell oil in dollars, including to U.S. buyers, as part of the negotiations to restore shipping through the Strait of Hormuz. Falling energy prices can ease inflation concerns. Odds of a Fed hike in September decline slightly, according to CME. The WSJ Dollar Index rises 0.2%. The 10-year yield slips to 4.487% from yesterday's 4.507% settle. The two-year declines to 4.192% from 4.230%. (paulo.trevisani@wsj.com; @ptrevisani)
1254 GMT - Couche-Tard's F4Q EPS beat was driven by solid gasoline margins, says Stifel's Martin Landry. "U.S. gasoline margins reached $0.52/gal, this highest level in more than five years," the analyst says. The company's arbitrage strategies benefited from the volatility in crude prices during the quarter, according to Landry. Citing data from OPIS, he says industry gasoline margins in the U.S. were approximately $0.35/gal during the quarter, while Couche-Tard's U.S. gasoline margins were $0.52/gal, "an outperformance of 46%, above the historical average outperformance of 15-18%. The strong gasoline margins were a main contributor to the earnings beat." (adriano.marchese@wsj.com)
(END) Dow Jones Newswires
June 24, 2026 04:20 ET (08:20 GMT)
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