The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
1002 GMT - U.S. Treasury yields and the dollar trade steady amid hopes that diplomatic talks between the U.S. and Iran could be revived and a ceasefire put in place, Kudo.com's Konstantinos Chrysikos says in a note. "Progress on that front would limit the demand for safe-haven assets, weighing on the greenback," he says. However, falls in the dollar and Treasury yields could remain limited after Yemen's Iran-aligned Houthi movement declared a naval blockade on Saudi Arabia. Meanwhile, military operations continue in the region and disruptions to maritime traffic persist, Chrysikos says. The 10-year U.S. Treasury yield is steady at 4.598%, according to Tradeweb. The DXY dollar index is stable at 100.926. (emese.bartha@wsj.com)
0926 GMT - John Healy's appointment as treasury chief is a positive development for U.K. manufacturers, Emily Sawicz at RSM UK says in a note. Alongside Wes Streeting as defense secretary, the move signals a focus on delivering defense investment, placing stronger emphasis on supporting U.K.-based producers and supply chains, she says. "This could provide a meaningful boost for domestic industry, helping to strengthen manufacturing capacity, support skilled jobs and encourage investment and innovation across the wider industrial base." Still, increased spending will need to be combined with investment in technological advancement, production capacity and workforce development, Sawicz adds. With the industry facing a lack of skills availability and significant order backlogs, a stable pipeline of defense projects will be needed to boost business confidence, she says. (don.forbes@wsj.com)
0854 GMT - London's miners trade higher in mid-morning European trade as gold prices gain. This comes as mediators work on a new ceasefire agreement. Reports that talks were ongoing halted oil's rise and eased some inflation concerns. At the same time, investors have bought gold, which has suffered from some price weakness, MUFG's Soojin Kim writes. "Markets continue to balance the inflationary impact of higher energy costs against weaker U.S. economic data, with expectations that persistent inflation could prompt the Fed to maintain a tighter monetary policy stance," she writes. In New York, gold futures are up 1.3% at $4,068 a troy ounce. In London, precious metal miners Fresnillo, Hochschild Mining and Endeavour Mining all rise over 2.3%. Commodities giant Glencore gains 2% and Anglo American rises 1.5%.(adam.whittaker@wsj.com)
0843 GMT - The size and longevity of Prysmian's agreement with Molex is highly positive, Jefferies analyst Lucas Ferhani says in a research note. The deal allows the Italian cable maker to fix its gap in connectivity-solution offerings for data centers and, given the recent weakness in the shares, should bring more confidence to its digital solutions business, Ferhani says. The deal also came in well ahead of expectations and prior comments, he adds. Prysmian is expected to provide more details on the impact during the next results, the analyst adds. Shares trade 2.8% higher at 128.5 euros. (nina.kienle@wsj.com)
0821 GMT - The euro could soon fall back below $1.14 if energy prices remain elevated, ING's Francesco Pesole says in a note. Expectations the European Central Bank will raise interest rates further have provided support to the euro but there is limited scope for markets to price in further tightening, he says. Markets price 45 basis points of rate rises by year-end, according to LSEG, and this pricing is unlikely to exceed 50 basis points, he says. Even at the peak of the spring oil rally, markets never priced the year-end deposit rate rising above 2.75% from 2.25% currently. "That suggests further oil price gains may increasingly weigh on euro-dollar." If the euro breaks below $1.14, the next key support level is $1.1330, he says. (renae.dyer@wsj.com)
0821 GMT - Var Energi's BlueNord acquisition supports long-term production, with the deal expected to add around 45,000 barrels of oil-equivalent a day in net production from the Danish Continental Shelf, J.P. Morgan analysts Alejandra Magana and Riddhi Agarwal write. Accumulated post-tax synergies are guided at $250 million-$300 million between 2027 and 2032, driven by financing costs and lower overhead costs. On the back of the acquisition, Var raised its long-term production target to around 450,000 barrels a day from over 400,000 barrels a day and raised its second-quarter dividend and third-quarter dividend guidance to $350 million, an increase of 17%. "We expect 2026 and longer term dividend forecasts to rise and 2027+ production estimates to increase." Var Energi shares rise 5.3% while BlueNord shares climb 6.3%.(dominic.chopping@wsj.com)
0811 GMT - Jonathan Reynolds's reappointment as secretary of state for business and trade is a positive decision by new Prime Minister Andy Burnham, manufacturers organization Make UK says. Reynolds's success will be measured by whether manufacturers see lower costs, fewer trade barriers and a more competitive environment, Make UK CEO Stephen Phipson says. "We stand ready to work with the Secretary of State to make this a reality," Phipson says. (ian.walker@wsj.com)
0804 GMT - Oil prices ease in early trading, leaving Brent back below $90 a barrel as mediators work to push the U.S. and Iran into a new ceasefire. The global oil benchmark is down 1% to $88.32 a barrel, while WTI futures slip 0.7% to $81.91 a barrel. "This won't be an easy task," analysts at ING say. "Large divisions remain between the U.S. and Iran." Meanwhile, Yemen's Iran-backed Houthi militia announced a blockade of Saudi shipping amid a standoff with the kingdom--a development that would severely disrupt supplies, preventing oil flows to Asia from moving south via the Bab el-Mandeb Strait. Still, looking at oil price action this morning, analysts say the market might not be convinced that the blockade will be successful. (giulia.petroni@wsj.com)
0747 GMT - European airlines are facing a challenging environment that will be far worse for those with poorer access to capital, Bernstein analysts Alex Irving and Antoine Madre say in a research note. Dublin-listed Ryanair has higher margins and a stronger balance sheet than its main competitors, the analysts say. The increase in fuel costs, set to hit Ryanair in 2027 and 2028, will hurt its weaker competitors first, they say. The rising fuel prices set the stage for industry capacity cuts, they add. "That raises the risk of industry capacity rationalization near term: either voluntary schedule reductions, or involuntary ones as airlines fall into bankruptcy," Bernstein says. Ryanair shares trade 0.4% lower at 24.69 euros. (nina.kienle@wsj.com)
0747 GMT - Var Energi's deal to buy BlueNord makes industrial and financial sense, SB1 Markets analyst Teodor Sveen-Nilsen writes. For Var Energi, the acquisition is at a favorable valuation, the analyst says. Taking into account estimated synergies of $250 million-$300 million by 2032, SB1 Markets expects that the target price on the stock could increase by 4%-5%. For BlueNord shareholders, the deal lowers the risk surrounding an expected dividend decline from 2027. "We also want to highlight that the companies' cash flow profiles complement each other well." The bank reiterates its neutral rating on Var Energi and a target price of 43 Norwegian kroner for the time being. Var Energi shares rise 4.7% to 45.66 kroner, while BlueNord shares rise 5.5% to 503 kroner. (dominic.chopping@wsj.com)
0738 GMT - Var Energi investors are likely to view the company's deal to buy BlueNord positively, which combined with an outlined dividend increase, will dominate sentiment this morning, RBC Capital Markets analyst Victoria McCulloch writes. Var Energi has announced a combination with BlueNord to create the largest independent oil and gas producer in Europe, with a long-term production target of around 450,000 barrels of oil equivalent, up from over 400,000 barrels as a standalone company, McCulloch says. The transaction will add Danish Continental Shelf assets with stable production and limited near-term investment. Completion is expected around year-end, with BlueNord shareholders receiving 248.4 million new Var shares and 1.96 billion kroner in cash. Var Energi shares rise 5.8% while BlueNord shares rise 6.5%. (dominic.chopping@wsj.com)
0730 GMT - The war in the Middle East is expected to drag on, says Madison Cartwright, economist at CBA. CBA's base case suggests there is a 55% probability that the war will continue at the current intensity for at least the next 2 months, she adds. After two months, CBA expects that a diplomatic outcome will become more viable, and a deal to open the Strait of Hormuz can be negotiated. CBA assigns just a 15% probability to a diplomatic breakthrough and new ceasefire in the next two months.There is a 30% risk that the war escalates further in the next two months, she adds. (james.glynn@wsj.com; X @JamesGlynnWSJ)
(END) Dow Jones Newswires
July 21, 2026 06:02 ET (10:02 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments