The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0820 ET - Bitcoin rises as scaled back U.S. interest rate rise expectations provide support to risky assets. U.S. nonfarm payrolls data on Thursday were weaker than expected. Tempered speculation that the Federal Reserve could raise rates more than once before year-end improved sentiment toward bitcoin, Trade Nation's David Morrison says in a note. "Lower borrowing costs can often support risk-sensitive assets such as cryptocurrencies by improving liquidity conditions." Bitcoin trades up 0.8% at $62,062, having reached a one-week high of $62,128 Thursday, LSEG data show. (renae.dyer@wsj.com)
0821 ET - European equity investors want to broaden their holdings beyond artificial intelligence-linked stocks, Morgan Stanley analysts write. Investors should look to broaden into stocks that aren't dependent on AI and those which provide income in order to reduce volatility in their portfolios, the analysts say. In addition, investors should hold stocks with improving fundamental themes, such as those benefiting from the reopening of the Strait of Hormuz, they say. "Europe offers plenty of scope for diversification, improving fundamentals and structurally rising stock dispersion." U.K. defense group Rolls-Royce and British Airways-owner IAG are among stocks the analyst think will benefit from the strait reopening. (josephmichael.stonor@wsj.com)
0807 ET - Big pharmaceutical companies' flurry of drug-licensing deals in China means the country's assets are no longer cheap, Ipsen's Chief Business Officer Philippe Lopes-Fernandes says. China attracted big pharma in the first place because of the amount of innovative research being produced there, the speed at which it was being developed, and low costs, Lopes-Fernandes says in an interview. "In the past it was cheaper to do deals in China. That's not the case anymore," he says. "Because of the competition with large pharma, it's even becoming more expensive than in some other geographies." Ipsen shares fall 1.6%. (adria.calatayud@wsj.com)0756- Canadian construction company Aecon has tapped into a new growth driver tied to accelerating data center demand. Raymond James' Frederic Bastien upgrades the stock rating to outperform from market perform after it was selected to build a multibillion-dollar power generation facility aimed at serving a major data center development. "The contract adds another growth vector to what we believe is already the most significant power infrastructure opportunity set for ARE in our more than two decades covering the stock," Bastien says. From here, the stock is poised for growth, and the analyst notes that any additional announcements will serve as further growth catalysts. He also raises the price target to C$60 from C$52. (adriano.marchese@wsj.com)
0748 ET - The European Central Bank could remain biased towards raising interest rates further, supporting the euro, as inflationary risks remain elevated, MUFG Bank's Derek Halpenny says in a note. While crude oil tanker traffic is picking up, the same cannot be said for liquefied natural gas shipments, he says. "The ECB will be monitoring energy prices and the scale of retracement since the [U.S.-Iran] ceasefire extension was agreed and the Strait of Hormuz reopened is not yet enough to eliminate energy-related inflation risks." The euro rises 0.2% to $1.1452. (renae.dyer@wsj.com)
0722 ET - Sterling's recent recovery reflects a weaker dollar but also an easing in the political risk premium, Ebury's Matthew Ryan says in a note. Andy Burnham is almost certain to succeed Prime Minister Keir Starmer, and his commitment to fiscal rules is alleviating risks of a weaker sterling, he says. A critical risk factor for sterling, however, is who Burnham appoints as Treasury chief, he says. Ed Miliband remains bookmakers' favorite to become Treasury chief, which is a "clear negative for the pound given his preference for expansionary fiscal policy." Sterling rises 0.1% to $1.3357 after reaching a two-week high of $1.3384 Thursday, LSEG data show. The euro rises 0.1% to 0.8569 pounds, having hit a one-year low of 0.8544 Thursday.(renae.dyer@wsj.com)
0704 ET- Algonquin Power is building a regulatory momentum that is setting the course for a "back-to-basics" turnaround. National Bank of Canada's Baltej Sidhu trims his estimates slightly to reflect timing adjustments, but says that the quarter was active on the regulatory front, with new rate filings across New York Water, Empire Electric, and EnergyNorth Gas. Sidhu notes these proceedings now represent around $250 million in pending revenue requests, supporting Algonquin's focus on timely capital recovery and improved return on equity. Farther on the horizon, Sidhu says he sees "attractive growth opportunities through AQN's regulated capital program, including transmission investment and data center-related load growth." (adriano.marchese@wsj.com)
0651 ET - French tire maker Michelin could report a top-line increase in the second quarter, which would mark its first three-month period of positive growth after 11 consecutive quarters of declining revenue, Deutsche Bank analyst Christoph Laskawi writes. Earnings in the first half are expected to be in line with the full-year target trajectory, and free cash flow should follow the usual seasonality, the bank adds. On the back of slightly increased forecasts, Deutsche Bank lifts its target price to 36 euros from 34 euros and reiterates its buy rating on the stock. Shares rise 1% to 35.07 euros. (dominic.chopping@wsj.com)
0644 ET- Toy maker Spin Master is entering a period where long-absent catalysts may finally reappear, according to TD Cowen analyst Brian Morrison. The analyst says that he expects a "return to historical retail ordering patterns," cleaner inventory and a more compelling product slate that including a stabilizing Melissa & Doug segment. This should position the company to outperform 2Q expectations and build momentum into the crucial 3Q selling season, he says. Morrison notes that investor sentiment has waned after several financial misses, but says visibility in meeting annual guidance is improving as ordering normalizes and core brands collaborate across toys, licensing and digital. With confidence rebuilding and valuation "at historical lows," Morrison believes Spin is set up for renewed interest. He increases the stock's target price to C$27 from C$26. (adriano.marchese@wsj.com)
0637 ET - The U.S. nonfarm payrolls report was a "clear disappointment" for the dollar bulls, says Ebury's Matthew Ryan in a note. "All things considered, a rather soft report that supports our call in favor of no rate hikes from the Federal Reserve this year," says the head of market strategy. Fed Chairman Kevin Warsh has made clear that the Fed's focus is on inflation, so Thursday's report might not carry as much weight as it would have done in the past, Ryan adds. The U.S. labor market remains robust, but loose enough that workers aren't able to demand sizeable salary hikes, which should ease pressure on inflation, he says. Energy prices have also fallen and risks of second-round inflation effects seem limited. (emese.bartha@wsj.com)
0610 ET - German automaker BMW used a U.S. investor day to underline that the U.S. has clearly outgrown simply being an attractive profit pool and is now a strategic manufacturing, export and product-development hub for the group, Deutsche Bank analyst Tim Rokossa writes. "Some would say THE strategic hub," Rokossa says. The bank also believes that the new CEO's initial agenda appears to be less about completely resetting BMW's strategy and more about accelerating execution on flexibility, cost and regional resilience. Deutsche Bank rates BMW at buy with a 90 euro target price on the stock. Shares rise 1.1% to 60.84 euros. (dominic.chopping@wsj.com)
0558 ET - Finnish telecom equipment maker Nokia is expected to report another quarter of strong artificial intelligence order intake, Bank of America Securities analysts write. The bank believes AI and cloud orders will be the key focus of the report. It says it believes second-quarter AI orders will be at least on par with the 1 billion euros order intake in the first quarter, given significant data-center switch orders expected, and given continued strength in optical transport demand. BofA expects second-quarter mobile infrastructure revenue to land below cloud and software services, but EBIT is expected to be above, thanks to ongoing portfolio pruning and margin improvement. It raises its price objective to 15.60 euros from 14.40 euros and reiterates its buy rating. Shares rise 2.1% to 11.01 euros. (dominic.chopping@wsj.com)
(END) Dow Jones Newswires
July 03, 2026 08:22 ET (12:22 GMT)
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