The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0938 GMT - U.S. Treasury yields fall and the dollar retreats as markets react to an easing in the Middle East tensions, as President Trump's pause of strikes on Iran cause oil prices to slide. "The apparent de-escalation dragged oil prices lower, tempering inflation concerns," says Tapaas' Jonathan Squires in a note. "A sustained decline in crude prices could further ease inflationary pressures and soften monetary policy expectations." On Wednesday, the Federal Reserve is expected to keep rates on hold, although markets anticipate a hike in September, according to LSEG. The 10-year Treasury yield falls 4.3 basis points to 4.636%, according to Tradeweb. The DXY dollar index falls 0.2% to 101.264. (emese.bartha@wsj.com)
0923 GMT - The cost of insuring euro-denominated credit against default declines as market sentiment improves after the U.S. and Iran pause hostilities. The pause has offered relief to markets and reduced the possibility of a near-term escalation in the conflict, Tickmill Group's Patrick Munnelly says in a note. The iTraxx Europe Crossover index of euro high-yield credit default swaps falls 8 basis points to 258bps, S&P Global Market Intelligence data show. (miriam.mukuru@wsj.com)
0902 GMT - A solid rise in the Ifo German business climate index points to continuing growth momentum in Germany, Philipp Scheuermeyer at KfW Research says in a note. Government reforms have driven sentiment higher, he says. "We expect a continuing growth momentum thanks to strong construction output and, presumably, even some growth in consumer spending." Still, with the peace deal between the U.S. and Iran on shaky ground, signals for the second quarter look less certain, Scheuermeyer says. Growth can continue with moderately higher energy prices. However, if energy exports from the Gulf region remain stalled for too long, the energy-price shock will ultimately take its toll, he says. Ifo's business-climate index unexpectedly rose to 86.6 in July from 85.7 in June. (don.forbes@wsj.com)
0843 GMT - Malaysia is likely to be a key beneficiary of the ongoing restructuring of global supply chains, supported by stronger AI-related participation, with expanded re-export activities and increased Chinese investment inflows, UOB economists say in a note. They say the country has benefited from both long-term production shifts under the China+1 strategy and near-term trade diversion away from China. Looking ahead, sustaining these gains will depend on Malaysia's ability to deepen local manufacturing capabilities, move further up the technology value chain and create more domestic value as tougher rules of origin and anti-transshipment measures take effect, they add. (yingxian.wong@wsj.com)
0833 GMT - Yields on U.K. government bonds, or gilts, fall as oil prices slide due to a pause in Middle East hostilities, but they are also helped lower after Prime Minister Andy Burnham indicated possible cut to welfare spending. In an interview with the BBC, Burnham said he wants to make it harder for people to claim benefits, which could calm concerns that his government could intend to increase public spending. Ten-year gilt yields are down 5.4 basis points to last trade at 4.984%, having hit a one week-low of 4.971% earlier in the session, Tradeweb data show. (miriam.mukuru@wsj.com)
0819 GMT - European gas prices tumble on hopes that a pause in fighting between the U.S. and Iran could pave the way for renewed diplomatic efforts and restore flows of liquefied natural gas. The benchmark Dutch TTF contract is down 6.2% to 59.70 euros a megawatt-hour, though it remains more than 46% higher on the month. Europe is facing a challenging race to secure LNG supplies as Qatar's export restrictions coincide with stronger Asian demand and above-average temperatures driving higher gas consumption. With storage levels at 54%, well below the five-year seasonal average of 70%, markets are concerned that Europe could struggle to rebuild inventories ahead of the winter heating season. (giulia.petroni@wsj.com)
0815 GMT - The euro remains vulnerable to renewed falls even as oil prices ease after the U.S. and Iran halted attacks, ING's Francesco Pesole says in a note. The euro's rise above $1.14 looks "somewhat optimistic" given the absence of a clear de-escalation path, he says. "Any renewed military strikes could quickly send Brent crude back to $100 per barrel and the euro below $1.1380." Potential dollar buying ahead of the Federal Reserve's decision Wednesday could also weigh on the euro versus the dollar, he says. Elevated gas prices are another reason to remain cautious on the euro unless tensions ease quickly, he says. The euro rises 0.3% to $1.1402.(renae.dyer@wsj.com)
0757 GMT - Portuguese energy company Galp Energia could be taking the first step toward selling its solar and wind portfolio, RBC Capital Markets analyst Biraj Borkhataria writes. Galp is buying 15 onshore wind farms in Spain in a 420-million-euro deal. It follows the acquisition of another portfolio in April in a 320-million-euro deal. Galp previously held a predominantly solar portfolio and the wind acquisitions could be the first step to selling the entire portfolio, he says. This is because the combination of wind and solar would likely achieve a better valuation than a solar-only portfolio, Borkhataria says. Shares fall 3.6% to 19.31 euros. (adam.whittaker@wsj.com)
0749 GMT - European energy stocks fall in opening trade after President Trump paused a major escalation in the military campaign against Iran. The U.S. military had been ready Friday to launch an intensive series of strikes against Iran, which could have lasted up to two weeks, officials said. The pause and renewed focus on diplomacy sends Brent crude futures sliding 5.8% to 86.37 a barrel while WTI drops 3.9% to $76.25 a barrel. In London, BP falls 3.5% and Shell slips 1.8%. France's TotalEnergies falls 2.7%, Spain's Repsol is down 2% while Italy's Eni drops 4%. Portugal's Galp, which also reported second-quarter results Monday, was down 4.6%.(adam.whittaker@wsj.com)
0741 GMT - Asia economies may face higher inflation pressure from elevated oil prices, according to Goldman Sachs in a research note. GS maintains its oil-price forecast of $80 per barrel for Brent in 4Q, although the price can go even higher given renewed U.S.-Iran military strikes and potential for a new bottleneck in the Red Sea. "Import prices and producer prices rose sharply across Asia in recent months (though implicit or explicit subsidies have moderated or capped retail fuel prices in some countries)," they say. (tracy.qu@wsj.com)
0734 GMT - Gold prices rise after the U.S. paused military strikes against Iran, sending Brent crude below $90 a barrel and easing concerns over inflationary pressures. In early European trading, New York gold futures are up 0.9% t $4,107.10 a troy ounce. "The easing in geopolitical tensions has reduced inflation concerns and could lessen pressure on the Fed to tighten policy further, providing near-term support for gold ahead of this week's closely watched Fed meeting," says Soojin Kim, analyst at MUFG. With a hold largely priced in, investors will focus on Fed Chair Kevin Warsh's remarks for clues on the policy outlook and the likely path of interest rates for the remainder of the year.(giulia.petroni@wsj.com)
0729 GMT - Portuguese energy company Galp Energia hikes its dividend in a shift away from share buybacks, RBC Capital Markets analyst Biraj Borkhataria writes. The company made no changes to its buyback guidance. The 10% dividend hike accelerates recent growth following a 4% rise last year and 3% the year before, he adds. The company has completed over 90% of its 250 million euro buyback program for 2026, which suggests there will be limited share repurchases in the second half of the year, Borkhataria says. Overall, the group's second-quarter performance was in line with expectations but divisional performance was mixed, he says. Shares fall 3.9% to 19.25 euros. (adam.whittaker@wsj.com)
(END) Dow Jones Newswires
July 27, 2026 05:38 ET (09:38 GMT)
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