The latest Market Talks covering Energy and Utilities. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0741 GMT - European indexes largely edge higher in cautious trade as investors hold ground ahead of U.S. jobs data and news on talks in the Middle East. The Europe-wide Stoxx 600 adds 0.2% as software and healthcare sectors lead. London's FTSE 100 edges up 0.2%, with oil majors gaining as oil ticks higher. A Diageo rally continues into a second day, with the stock up 1.5%. The German DAX gains 0.4%. Software giant SAP gains 3.5%, though Daimler Truck Holding slips 2.9% after posting earnings. In Paris, the CAC 40 is 0.3% up as Dassault Systemes adds 2.4%, while Thales gains 1.9%. Italy's FTSE MIB is flat, while the Spanish IBEX 35 slips 0.3% as banking stocks weaken. The AEX edges 0.1% lower in Amsterdam.(josephmichael.stonor@wsj.com)
2343 GMT - Oil rises in early Asian trade amid concerns over supply disruptions in the Middle East. The "Iranian-backed Houthi militant group said they had conducted a 'large-scale' attack on forces from Yemen's Saudi Arabia-backed government, killing and injuring 'hundreds' of troops," say ANZ Research analysts, noting media reports. "This is on the back of ongoing threats to shipping in the Red Sea, a key route for Saudi oil since the Middle East conflict began," the analysts say in a research report. Front-month WTI crude oil futures are 1.0% higher at $78.05 per barrel. (ronnie.harui@wsj.com)
1921 GMT - Oil futures recover ground as the market is left waiting for a deal between the U.S. and Iran to reopen the Strait of Hormuz after Iran and Oman agreed on a shipping route for the waterway. "The current diplomatic exchanges have merely raised hopes that tensions could ease. They do not mean that an agreement has already been signed or can be effectively implemented," XS.com market analyst Linh Tran says in a note. "Risks related to military activity, maritime transportation and oil supply from the Middle East remain firmly in place." WTI settles up 2.8% at $77.29 a barrel and Brent rises 3.8% to $82.49 a barrel. (anthony.harrup@wsj.com)
1705 GMT - Oil futures are rising as the market waits for news on a possible deal between the U.S. and Iran to reopen the Strait of Hormuz, while Houthis continue attacks and threats against shipping in the Red Sea. Traffic through the straits of Hormuz and Bab al-Mandeb remains subdued, although some ship movement has occurred, notes Dennis Kissler of BOK Financial. But "crude traders remain focused on the U.S.-Iran agreements, and the longer the delays, the more prices will fade back to the upside." WTI is up3.7% at $78.01 a barrel and Brent gains 4.4% to $82.92.(anthony.harrup@wsj.com)
1441 GMT - Most major Gulf stock markets edge lower as geopolitical tensions continue to weigh on sentiment. The Dubai Financial Market General Index leads the decline, falling 1.5%. Saudi Arabia's Tadawul All Share Index and Qatar's QE index each lose 0.7%, and Abu Dhabi's benchmark index slips 0.1%. Dubai is more sensitive to shifts in sentiment because of its heavier weighting toward real estate and banks and its larger retail-investor presence, says Mazen Abou Ismail at FFA Private Bank Dubai. Recent falls in oil prices are offering limited support to regional equities as markets assess ongoing geopolitical risks, he says. (farhan.rafid@wsj.com)
1322 GMT - Treasury yields rise after initial jobless claims come in at 199,000 versus the WSJ consensus of 204,000, suggesting a healthy labor market. Meanwhile, oil prices edge higher amid talks to reopen the Strait of Hormuz. A separate report from outplacement firm Challenger, Gray & Christmas finds that U.S.-based employers announced 33,429 job cuts in July, down 27% from cuts announced in June. The 10-year yield is at 4.65%, slightly higher than yesterday's close of 4.62%. The 2 year-yield is at 4.22%, also slightly higher than yesterday's close of 4.12%.(jessica.coacci@wsj.com)
1217 GMT - Crude futures are higher as the market awaits the outcome of talks to reopen the Strait of Hormuz after Iran said it has agreed with Oman on a shipping route through the waterway. TP ICAP's Scott Shelton sees the likelihood of a fragile agreement "which I would argue is priced here for crude," as flows through the strait will recover "but not to the extent where the market gets swamped with oil." The market would also still need a risk premium for the possibility of a deal failing "relatively quickly," while not addressing the diesel shortage, he says in a note. WTI is up 0.8% at $75.83 a barrel and Brent climbs 1% at $80.28.(anthony.harrup@wsj.com)
0857 GMT - Harbour Energy's second-half free cash flow will be hit by Norway and U.K. tax payments, J.P. Morgan analysts Alejandra Magana and Riddhi Agarwal write. The company has guided for free cash flow of around $1.8 billion over the year but delivered this in the first-half. This means cash flow over the remainder of the year will be broadly neutral, they write. Shares rise 7% to 248.4 pence.(adam.whittaker@wsj.com)
0825 GMT - Harbour Energy investors will want to know if there is further upside to returns, Jefferies analysts write. The company upgrades its free cash flow guidance to around $1.8 billion but already delivered this over the first half of the year. The company plans to return a minimum of $800 million to shareholders over 2026. This comes after it was able to capture the higher oil and gas prices with a strong operational performance, they write. Shares rise 7% to 248.4 pence.
Comments