The latest Market Talks covering Basic Materials. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0649 GMT - The appointment of Glencore's Suresh Vadnagra as Northern Star's CEO from October is positive and could accelerate a portfolio review at the Australian gold miner, says Macquarie. The bank also cheers early 4Q gold sales numbers, which "provide some signal of a clean operational quarter," it says. "While NST notes KCGM remains on track for commissioning, the ramp-up schedule remains a key risk," Macquarie adds. The bank has an outperform rating and A$25.00/share target on Northern Star. Shares end up 5.5% at A$19.83. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
0420 GMT - South32's aluminum sale pleases Macquarie, which reckons the miner will be better able to pursue copper growth as a result. The deal "daylights value in the upstream portfolio, closing out the conglomerate discount and moving S32 to a simpler growth focus," it says. Macquarie views the up to US$5.6 billion deal as being broadly value neutral. It trims its target on the stock by 2.2% to A$4.50 and retains a neutral rating. But "we believe the company should now be able to focus purely on progressing attractive Cu/Zn [copper/zinc] development alternatives, with the added firepower of a deleveraged balance sheet and simpler operating model," it says. Shares are down 1.6% at A$4.21 after gaining 9.7% Wednesday. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
0407 GMT - Morgans has mixed feelings about South32's aluminum sale to Alcoa. "It leaves S32 a simpler and, in important respects, a better business, but also a smaller and less valuable one," says analyst Adrian Prendergast. Morgans downgrades the stock to hold from accumulate. It cuts its target on South32's shares to 4.50 Australian dollars from A$5.00. Prendergast expects a positive reaction from the market, "which prioritizes a short-term focus." But he says the deal--valued at up to US$6.8 billion when closure and rehabilitation liabilities are considered--is below Morgans' valuation of US$9.2 billion. Shares are down 1.6% at A$4.21, eroding some of Wednesday's 9.7% gain. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
0333 GMT - Gold prices could reach $5,000 a troy ounce in early 2027, as the bull cycle for the yellow metal still has legs, say State Street Investment Management strategists in a note. Gold's status as a monetary hedge is likely to be supported by rising government debt, while physical demand for gold remains resilient, they note. Global gold fund ownership--as a portion of worldwide mutual fund and exchange-traded fund assets--also remains below State Street's target of 3%-10% for most portfolios. A hawkish Federal Reserve pivot shouldn't change the structural post-Covid dynamic for gold, they add. State Street expects baseline bullion prices to rally to $4,750-$5,500 an ounce over the next six to nine months. Spot gold rises 0.8% to $4,064.58 an ounce.(megan.cheah@wsj.com)
0050 GMT - Golden Horse Minerals could be a candidate to help fill the processing plant at the Edna May gold mine that Forrestania Resources is acquiring from Ramelius Resources, suggests Euroz Hartleys. Edna May has been on care and maintenance since March last year. It prompts analyst Michael Scantlebury to ask how Forrestania will fill Edna May's processing plant, which has an annual capacity of 2.9 million tons of ore. Euroz Hartleys says Golden Horse Minerals' Hopes Hill deposit looks to be around 1 million oz, citing a grade of 1.5 grams of gold per ton of ore. This "could support seven years of mine life at Edna May, producing more than 100,000 oz per annum at 1.2g/ton (applying dilution) and 90% recoveries," says Euroz Hartleys, which rates Golden Horse Minerals a speculative buy. (david.winning@wsj.com; @dwinningWSJ)
0020 GMT - Gold rises in early Asian trade. Central bankers' less hawkish commentary could be supporting the yellow metal, say ANZ Research analysts in a note, citing Federal Reserve Chairman Kevin Warsh's statement at a forum that price risks have come down in recent weeks. Economic data also showed Euro area inflation eased more than expected in June, while the U.S. showed strong manufacturing activity and robust labor growth, they add. These prints could help to buoy gold prices, the analysts say. Spot gold adds 0.3% to $4,043.40 a troy ounce.(megan.cheah@wsj.com)
1859 GMT - Gold and silver futures have a positive start to July, with both up for the second consecutive session. Front-month gold settles with a gain of 1.1% to $4,068.30/per troy ounce, while silver finishes up 1% to $60.085/per troy ounce. In a note, analysts with the World Gold Council say that they expect gold will "continue to serve as a barometer of global macroeconomic conditions." They see gold trading on either side of $4,100 a troy ounce, depending on what happens with the U.S.-Iran conflict, and how many rate hikes, if any, world central banks may introduce in an effort to curb inflation. (kirk.maltais@wsj.com)
1510 GMT - U.K. stocks have favorable valuations and provide diversification from AI investments, Helen Jewell, International CIO, fundamental equities at BlackRock says at their 2026 midyear outlook media roundtable. The U.K. equities market has stocks in the commodities sector, energy sector, and big banks which look attractive, she says. U.K. stocks look underpriced because they have been left out of the AI rally, Jewell says. (miriam.mukuru@wsj.com)
1157 GMT - Air Liquide is looking increasingly positive as a result of its growth profile becoming both stronger and more predictable, Bank of America analysts say in a research note. The French industrial-gases company's rapidly expanding electronics business is a key source of upside potential to its valuation, underestimated by the market, the analysts say. The division is expected to grow significantly faster than consensus forecasts and to become a much larger contributor to overall group growth over the coming years, they add. Bank of America raises its recommendation on the stock to buy from underperform on Air Liquide's improved mix toward higher-growth, contract-based semiconductor-related activities. The bank also raises its price target to 200 euros from 159 euros. Shares trade 1.4% higher at 175.68 euros. (nina.kienle@wsj.com)
1024 GMT - Glencore is a compelling and increasingly unique investment case because it is positioned to benefit from current market conditions while growing its copper portfolio, Berenberg's Richard Hatch and Jasper Mainwaring write. The commodity giant's legacy assets, such as coal and oil, combined with its marketing division, generate cash that can fund shareholder returns and help double copper output by 2035, they write. The market doesn't fully appreciate the strength of Glencore's copper growth story, which the analysts say is de-risked because it expands existing mines. The copper growth is also strategically timed to capture higher prices due to supply deficits, they write. Shares fall 0.3% to 512.20 pence.(adam.whittaker@wsj.com)
(END) Dow Jones Newswires
July 02, 2026 04:20 ET (08:20 GMT)
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