The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0952 GMT - The cost of insuring high-yield euro-denominated credit against default rises to a six-week high due to risk-off sentiment as the U.S.-Iran war intensifies. The U.S. on Wednesday said it fired strikes against Iranian targets, the 12th consecutive day of attacks. Iran continued attacks on ships on the Strait of Hormuz and Iran-backed Houthis claimed strikes on tankers in the Red Sea. The widening conflict has led investors to exercise caution. The iTraxx Europe Crossover index of euro high-yield credit default swaps rises 3 basis points to 260bps, S&P Global Market Intelligence data show. (miriam.mukuru@wsj.com)
0904 GMT - The Japanese yen falls to a fresh 40-year low against the dollar and the Swiss franc hits an 11-month low versus the dollar as the ongoing U.S.-Iran conflict sends oil prices higher. The low-yielding yen and the franc are two of the worst performing G-10 currencies since the U.S.-Iran conflict started in late February and continue to underperform this month, MUFG Bank's Lee Hardman says in a note. "The negative energy price shock and building expectations for European Central Bank and Federal Reserve rate hikes has weighed on both currencies." The dollar rises to as high as 0.8156 francs and 163.44 yen. The euro also rises to a six-month high of 0.9316 Swiss francs, according to LSEG. (renae.dyer@wsj.com)
0858 GMT - Norway's Equinor could upgrade full-year production guidance when it reports third-quarter results, Berenberg analysts write. The oil major's first-half production is up 6% year-on-year compared with full-year guidance of 3% growth, they say. While growth was expected to be weighted to the first half, Equinor has left the door open to revising its guidance, they add. Shares rise 3.37% to 392.30 Norwegian kroner. (adam.whittaker@wsj.com)
0827 GMT - Goldman Sachs keeps its Brent crude forecast at $80 a barrel for the fourth quarter of 2026, but said fresh threats to Red Sea shipping and lower Kazakhstan exports have increased near-term upside risks to prices. The U.S. bank expects prices to hold most of their recent gains through the summer, supported by lower Middle East output, seasonal travel demand and continued inventory draws. Goldman still forecasts Brent at an average of $75 a barrel in 2027, saying strategic stockpiling should provide a floor for prices despite an expected global supply surplus. However, it warned Brent could surge above $120 a barrel if disruptions to the Strait of Hormuz persist through next year, with further upside if the Bab el-Mandeb Strait and the Suez Canal are also disrupted. (giulia.petroni@wsj.com)
0817 GMT - France's TotalEnergies is prioritizing cutting net debt over higher distributions, RBC Capital Markets analyst Biraj Borkhataria writes. Its flat $1.5 billion quarterly share buyback comes as net debt falls $3.3 billion on the prior quarter. The company uses higher cash generation and a working capital release to pay the debt, he adds. Overall, net income is in line with expectations, while the marketing business seems to have had one of its strongest quarters in recent history, he adds. Shares rise 2.6% to 76.24 euros. (adam.whittaker@wsj.com)
0816 GMT - The European Central Bank could signal a possible September interest-rate rise through a media leak after Thursday's meeting, but this is unlikely to prevent the euro from falling in coming days, ING's Francesco Pesole says in a note. ING's near-term bias for the euro remains "titled to the downside" as currency markets appear "dangerously complacent" about the escalating Middle East conflict, he says. "Unless the newsflow becomes more constructive, we look for the euro to slip towards $1.1380 in the coming days." The euro rises 0.1% to $1.1423. The ECB announces its policy decision at 1215 GMT and is expected to leave rates unchanged but markets price a 90% chance of a rate rise in September, LSEG data show. (renae.dyer@wsj.com)
0811 GMT - Oil prices extend gains for a fifth consecutive session after the U.S. carried out another round of strikes on Iran and unverified reports said Houthi rebels targeted two tankers in the Red Sea, fueling concerns over disruptions to another key shipping route. In early trading, Brent crude climbs 4.6% to $98.39 a barrel, while WTI futures rise 3.4% to $89.75 a barrel. "The U.S.-Iran conflict has shown no sign of easing, and there's still no indication of any emerging peace deal either," analysts at Deutsche Bank say. Traffic through the Strait of Hormuz has fallen sharply from June levels, while Kpler ship-tracking data show some vessels have rerouted to avoid the Red Sea after the Houthis announced a maritime blockade against Saudi Arabia. The Houthis' threats have heightened concerns over longer shipping times, higher freight costs and the risk of tighter global oil supplies if the conflict escalates further. (giulia.petroni@wsj.com)
0806 GMT - Markets increase their expectations of the Bank of England increasing interest rates in 2026 due to rising oil prices and inflation fears. Intensifying conflict in the Middle East has led investors to price in the possibility of high inflation and potential central bank rate hikes to tackle inflation. Investors fully price in one quarter-point BOE rate increase in November and a 93% possibility of a second rate rise in December, LSEG data show. Traders were pricing in a total of 38 basis points of BOE rate rises in 2026, last week. (miriam.mukuru@wsj.com)
0805 GMT - U.S. and eurozone government bond yields rise across maturities, with the 10-year U.S. Treasury and German Bund yields hitting two-month highs of 4.671% and 3.198%, respectively, according to Tradeweb data. Yields have been climbing in recent sessions as renewed escalation in the Middle East prompted oil prices to rise, with Brent last trading 3.80% higher at $97.64. The rise in oil prices could concern policymakers at the European Central Bank ahead of a monetary policy decision later in the day. The ECB is widely expected to keep interest rates on hold, while a rate hike is anticipated in the coming months. (emese.bartha@wsj.com)
0743 GMT - Kuehne + Nagel should benefit from cost reductions through its deployment of artificial intelligence, Bernstein analyst Alex Irving and Antoine Madre say in a research note. However, at this stage it is less clear how the Swiss logistics company can hold onto these gains in the margin, instead of benefits flowing primarily to customers, the analysts say. The company also raised its guidance for 2026, targeting recurring earnings before interest and taxes between 1.35 billion Swiss francs and 1.55 billion francs, from a range of 1.25 billion francs to 1.4 billion francs. Current consensus sits at 1.37 billion francs. Shares trade 0.2% lower at 207.6 francs. (nina.kienle@wsj.com)
0735 GMT - Gold prices fall after reaching a two-week high on Wednesday, as escalating tensions in the Middle East drive oil higher, fueling concerns over inflation and interest-rate hikes. In early trading, gold futures in New York are down 1% to $4,110.30 a troy ounce, after rising in the previous session as dip-buyers emerged despite firmer U.S. yields. Investors now await the Federal Reserve's meeting next week for more cues on the monetary policy outlook. While the U.S. central bank is widely expected to keep rates unchanged this month, traders expect at least one rate hike by the end of the year. Higher interest rates tend to diminish the appeal of non-yielding bullion. (giulia.petroni@wsj.com)
0730 GMT - Bitcoin falls as U.S. stock futures decline amid the ongoing U.S.-Iran conflict and after earnings from Alphabet and Tesla fuelled concerns about AI spending. The U.S. is surging forces, medics and weaponry to the Middle East as President Trump considers expanding the conflict against Iran, WSJ reports. Shares in Tesla and Alphabet fell in after-hours trading after both reported negative free cash flow for the latest quarter and said they expect higher capital expenditures. Bitcoin falls 0.3% to $65,673, LSEG data show. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
July 23, 2026 05:52 ET (09:52 GMT)
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