The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0907 ET - Oil futures resume their decline and are again probing pre-war levels as the market focuses on increased flows out of the Persian Gulf. "Traffic through the Strait of Hormuz has improved but it has not been plain sailing," Kieran Tompkins of Capital Economics says in a note, pointing to yesterday's attack on a cargo ship and reports that Iran turned several tankers around. The firm expects half of the region's shut-in production to be back within a month and to reach pre-war levels in 4Q. "National oil companies are gearing up to sell more oil in July, suggesting that their outlook has become more positive," Tompkins adds. WTI is down 3.5% at $69.40 a barrel and Brent is off 3.9% at $72.34. (anthony.harrup@wsj.com)
0727 ET - Italgas's strategic plan through 2032 meets--but doesn't exceed--high buyside expectations, BofA analysts write. The Italian gas distribution company's total shareholder returns target of 14% is an attractive equity story, and may even be higher after M&A activity, they write. The analysts leave their buy rating on the stock unchanged. Shares rise 1.2% to 10.45 euros.(adam.whittaker@wsj.com)
0717 ET - Yields on U.K. two-year gilts fall to the lowest since March as investors cut back their bets on the Bank of England interest-rate rises. The prospects of the BOE increasing interest rates in the coming months have dropped as oil prices continue to fall, easing concerns about inflation risk. Investors currently price in a total of 19 basis points of BOE rate rises in 2026, down from 25bps of hikes priced in a week ago, LSEG data show. Two-year gilt yields are down 2 basis points to last trade at 4.098%, having dropped to a three-month low of 4.080% earlier in the session, Tradeweb data show. (miriam.mukuru@wsj.com)
0631 ET - Palm oil prices ended higher, supported by stronger export estimates, according to David Ng, a trader at Kuala Lumpur-based Iceberg X. However, falling crude oil prices may have a negative impact on palm oil, Ng says. He sees prices of crude palm oil supported above 4,500 ringgit a ton and resistance at 4,700 ringgit a ton. The Bursa Malaysia Derivatives contract for September delivery rose 9 ringgit to 4,566 ringgit a ton. (tracy.qu@wsj.com)
0629 ET - Schneider Electric's share price doesn't reflect the French group's growth prospects and strong returns, leaving the stock attractively valued despite a recent rally, Citi analyst Martin Wilkie says in a research note. The energy-management company's margins in the first half of the year should come in slightly below market consensus, but stronger-than-expected sales growth should offset this, Wilkie says. The analyst also expects Schneider to continue passing higher costs on to customers through pricing, helping protect profitability. The company could raise its full-year organic revenue guidance while maintaining its margin outlook, the analyst adds. Shares trade 1.9% lower at 274.2 euros. (nina.kienle@wsj.com)
0409 ET - Singapore's manufacturing growth will likely continue to be driven by the electronics segment in the coming months, DBS senior economist Chua Han Teng says in a note. Headline manufacturing growth moderated to 13% on year in May from 16.5% in April. "The global AI-driven technology cycle, which has supercharged Singapore's stellar electronics performance in the past few quarters, appears to have further room to run," Chua says. The de-escalation of U.S.-Iran tensions have also lowered the risks of rising input cost pressures and persistent severe supply chain disruptions. (amanda.lee@wsj.com)
0358 ET - Markets are cutting back expectations of the Bank of England raising interest rates in 2026 as oil prices fall. Since the U.S. and Iran agreed on a peace deal, Brent crude has dropped to $73 a barrel from around $90 a barrel. The decline has eased concerns about inflation and lowered the need for the BOE to increase interest rates to tackle inflation. Investors price in a 78% chance of a BOE rate rise in December, down from fully pricing in one rate hike prior to the U.S.-Iran deal, LSEG data show. (miriam.mukuru@wsj.com)
0357 ET - European energy stocks move lower in morning trade as oil prices continue to drop despite a vessel in the Strait of Hormuz being attacked. Brent crude falls 2.25% to $73.81 a barrel, while WTI is down 1.6% to $68.90 a barrel. Prices continue to slide as investors bet supply from the gulf will continue to ramp up as vessel leave the waterway. Shipping concerns will remain however after an Iranian attack against a cargo ship. In London, BP falls 1.6% while Shell slides 0.9%. Spain's Repsol is 1.5% lower and Italy Eni falls 1.2%. France's TotalEnergies is 0.8% down. (adam.whittaker@wsj.com)
0330 ET - Gold prices bounced back above $4,000 a troy ounce, but are still headed for a weekly loss as investors weigh the monetary policy outlook and developments in the Middle East. "Gold is heading for a fourth weekly loss, with investor sentiment still shaken by the recent selloff as markets adjust to the twin headwinds of a hawkish Fed and a stronger dollar," analysts at Saxo Bank say. "While the technical breakdown continues to weigh on sentiment, continued declines in energy prices and softer bond yields may eventually reduce pressure on the Federal Reserve to tighten policy further, potentially offering some support to the precious metal." In early trading, New York futures are flat at $4,047.30 an ounce, down nearly 5% on the week. (giulia.petroni@wsj.com)
0314 ET - Oil prices fall as the market focuses on the resumption of flows through Hormuz despite an Iranian attack against a cargo ship in the Strait of Hormuz reawakening concerns about shipping risks in the region. In early trading, Brent crude falls 2% to $74.03 a barrel, while WTI futures are down 2.1% to $70.38 a barrel. Prices climbed in the previous session after Iran attacked a Singapore-flagged cargo ship Thursday in the strait, prompting the International Maritime Organization to pause evacuation operations for the hundreds of ships still stuck in the Persian Gulf. "The latest strike on a vessel will likely slow traffic," analysts at ING say. "However, with the broader market focused on a recovery in oil flows from the region, price momentum still appears to be to the downside." (giulia.petroni@wsj.com)
0215 ET - The drift lower in German Bund yields and the scaling back of market expectations of European Central Bank rate hikes reflects optimism about the normalization of the situation in the Middle East, Societe Generale rates strategists write in a note. This is "more about markets focusing on a normalization of the Middle East conflict than about a fundamental change," they say. The key barometer for the market is the price of crude, and Brent at $74 per barrel is over 20% lower than at the last ECB meeting on June 11, the strategists say. Money markets currently price in just over interest-rate hike, according to LSEG. The ECB raised interest rates by 25 basis points at the last meeting. (emese.bartha@wsj.com)
0150 ET - In the absence of forward guidance by the Federal Reserve, U.S. rates markets will constantly recalibrate to incoming data, Societe Generale rates strategists say in a note. "The precipitous drop in oil prices and May core PCE inflation being in line with expectations led to a sharp decline in bond yields and a further flattening of the yield curve," they say. While a bit of reversal is possible as the market reassesses the possibility of interest-rate hikes, "we do not see a durable case for a sustained steepening of the curve." A moderation of hike expectations and attractive front-end yields could bring back a bid for bonds, the strategists say. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
June 26, 2026 09:07 ET (13:07 GMT)
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