The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.
2033 ET - JGBs edge lower in price terms in morning Tokyo session on possible position adjustments by investors following Thursday's mild price gains. JGB prices may also be supported by BOJ's scheduled outright purchases today of four sectors of the market such as sovereign securities with tenors of more than 1 year and up to 3 years and those with tenors of more than 5 years and up to 10 years. The five-year JGB yield is up 1 bp at 1.890%; the 20-year yield is up 1 bp at 3.545%. (ronnie.harui@wsj.com)
2021 ET - Japanese stocks are lower in early trade on possible profit-taking after the benchmark index rose to a record closing high on Thursday. Given the sustainability of earnings growth and current valuations in Japan, however, "AI and semi names are likely to remain the market's key driver," Citi Research's strategists say in a research report. "We maintain our view that the bull market will run into year-end," they add. Among the worst performers, Tokyo Electric Power is down 5.4%, TDK is down 4.5%, and Disco Corp. is 4.5% lower. The dollar is at 161.81 yen versus Y161.83 around Thursday's Tokyo stock market close. The Nikkei Stock Average is down 2.1% at 70832.18. (ronnie.harui@wsj.com)
1941 ET - Japanese stocks may fall on possible profit-taking after the benchmark index rose to a record closing high on Thursday. Domestic tech equities may also be weighed by overnight decline in Nasdaq Composite as Micron Technology's blockbluster results failed to lift the broader tech sector. Nikkei futures are 785 points lower at 71615 on the SGX. The dollar is at 161.78 yen versus 161.83 yen around Thursday's Tokyo stock market close. The Nikkei Stock Average rose 4.6% to 72366.34 on Thursday. (ronnie.harui@wsj.com)Stride Property has an opportunity to get back in investors' good books, suggests Forsyth Barr. The stock is trading at a big discount to its book value. Analyst Rohan Koreman-Smit attributes that partly to the lack of a clear strategic pathway and weaker operational metrics from its office portfolio. "We believe the recent board refresh provides an opportunity for Stride to revisit its strategy and provide the market with clarity on the future direction of the business," Forsyth Barr says. Detail on the specific steps and initiatives that SPG is undertaking would lift market confidence in any strategic changes, it says. Medium-term outcomes against which to measure its progress would help. Forsyth Barr retains an outperform call on Stride, which is up 0.9% at NZ$1.13 today. (david.winning@wsj.com; @dwinningWSJ)
1710 ET - The Bank of Mexico confirms an end to its monetary easing cycle by leaving its benchmark interest rate at 6.5%, saying it expects the rate to stay there for the foreseeable future. Goldman Sachs expects the central bank to keep the rate unchanged for the rest of this year, but thinks that with its focus on growth the board of governors "could entertain additional rate cuts after the summer if growth remains weak, the MXN well-anchored, and the FOMC remains on hold," chief Latin America economist Alberto Ramos says in a note. If the Fed were to raise interest rates, the board "would likely face unfavorable policy trade-offs given the very tight Mexico-U.S. interest rate differential," he adds. (anthony.harrup@wsj.com)
1627 ET - The hydropower sector worldwide added 28 gigawatts in new capacity last year, including a record 11.7 GW from pumped-storage projects, according to the International Hydropower Association. Pumped-storage systems store water in reservoirs at different elevations, releasing water to generate electricity but catching it in downhill basins, then pumping it back up during periods of low power demand. The additions lifted the world's total pumped-storage capacity to 201 GW, surpassing 200 GW for the first time, the trade group says. China accounted for roughly 12.2 GW of total capacity additions last year and dominates the sector with more than 300 GW under construction, including a 217.5 GW of pumped storage alone, the IHA adds. In comparison, the U.S. added about 0.5 GW in hydropower capacity last year. (luis.garcia@wsj.com; @lhvgarcia)
1546 ET - Treasury yields decline as U.S. indicators suggest the Fed may not need to be as hawkish as priced in by the market. WSJ reports Iran attacks a Singapore-flagged cargo ship in the Strait of Hormuz. Oil prices rise 2%. May PCE annual inflation accelerates as expected, to 4.1%, while durable goods orders fall 4.5%. First-quarter GDP growth is revised higher, to 2.1%. Jobless claims fall more than expected in a week shortened by Juneteenth holiday. June University of Michigan consumers sentiment index is expected to increase, in a WSJ consensus. The WSJ Dollar Index falls 0.2%. The 10-year yield slips 0.008 percentage point to 4.391%. The two-year drops 0.016 p.p. to 4.120%. (paulo.trevisani@wsj.com; @ptrevisani)
1530 ET - Five years ago, there was a notable change to the Bank of Canada's inflation-targeting framework agreement -- the inclusion of "maximum sustainable employment," championed by the Canadian finance minister at the time, Chrystia Freeland. A summary of consultations the Bank of Canada recently concluded about its inflation-target regime suggest the employment reference may need to come out. The framework agreement, between the BOC and Canada's finance department, needs to "reassert the primary focus on inflation and less emphasis on" employment, says the report on consultations. The report indicated labor groups backed the employment reference. In 2021, when the inflation-targeting framework was tweaked, some economists warned the change sowed confusion. Yet, BOC officials since then have made clear that 2% inflation is their guiding light. (Paul.Vieira@wsj.com, @paulvieira)
1450 ET - Chicago Fed President Austan Goolsbee said on CNBC that today's inflation report wasn't all negative, as there was some improvement in services inflation. Goolsbee noted that measure has been more concerning recently because its elevated reading doesn't stem from rising oil prices or tariff-related pressures. Regarding both sides of the Fed's dual mandate, inflation remains his concern. When discussing tools the Fed uses, such as the balance sheet, Goolsbee said the rate decision is fundamentally the monetary policy decision for the Fed. "The balance sheet in emergencies, like the origins of QE [quantitative easing], was used as monetary policy, but I tend to think of the balance sheet not as a monetary policy decision," he said. (jessica.coacci@wsj.com)
1252 ET - Bitcoin is trading near $59,000, a level last seen in 2024. While expectations for a more hawkish Federal Reserve potentially raising interest rates multiple times this year have kept bitcoin underwater, it's not a position unfamiliar to longer-term holders. Matt Mena with 21shares points to a high score on Glassnode's accumulation trend score, last seen both in 2022 in the depths of FTX-related selling and 2020's Covid-era market crash. "Bitcoin went on to 36x and 8x respectively from those lows," says Mena. If upcoming reports from the government come in softer than anticipated, then Mena sees a pathway for bitcoin to rise back up to around $67,000, with further upside from there if a lasting resolution to the U.S.-Iran conflict. (kirk.maltais@wsj.com)
1234 ET - Micron will generate an estimated $380 billion in free cash flow in 2027 and 2028 which will likely be heavily used for stock buybacks, UBS says in a research note. At the current stock price, that could allow the company to repurchase some 20% to 30% of its shares between now and then, the analysts say. They are slightly lowering their estimates for EPS in 2029 to $121 and, discounting it back a year, maintain a price target of $1,625. UBS also maintains its buy rating. Micron surges 16% to $1,214.94. (dean.seal@wsj.com)
1210 ET - An apparent discrepancy in markets pricing of future inflation and interest rates could be deceiving, Northlight's Chris Zaccarelli says. War-related energy inflation and a recent hawkish pivot by the Fed have let fed funds futures to price in at least one hike this year. But oil prices have fallen sharply recently. Meanwhile, the completely different swap market prices inflation near the Fed's 2% target in the one-year horizon. "Both markets can be correct," Zaccarelli says, as "some members of the Fed may want to raise rates in the hopes of causing the inflation rate to drop." He expects the Fed to remain on hold instead of hiking, though. (paulo.trevisani@wsj.com; @ptrevisani)
(END) Dow Jones Newswires
June 25, 2026 20:33 ET (00:33 GMT)
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