The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0829 GMT - Hong Kong's investment is likely to see a lift from large infrastructure projects, according to HSBC in a research note. "There has been a notable push to accelerate the development of large infrastructure projects, namely the Northern Metropolis," the bank says. Northern Metropolis is a massive planning and development area in Hong Kong's New Territories. This should lift public investment, which will be backed by infrastructure bond issuance, HSBC says. The government may also push policies to drive up the private sector involvement in the development, the bank adds.(tracy.qu@wsj.com)
0818 GMT - Trade and AI are likely to support Hong Kong's economy this year, according to HSBC in a research note. "We see AI-led demand as a key tailwind that is set to continue given Hong Kong's heavy semiconductor exposure, which accounts for over 40% of goods trade," the bank says. Semiconductor trade has risen by over 50% year-on-year in recent months, HSBC says. It adds that improvement in mainland China-U.S. dynamics and strong mainland-linked trade may add support. (tracy.qu@wsj.com)
0817 GMT - Copper prices hold above $14,000 a metric ton as fears of potential U.S. import tariffs continue to draw large volumes of metal into the country, tightening physical markets elsewhere. "Tight physical markets, low inventories and constrained mine supply should continue to underpin prices," ING analysts say. However, "with copper trading close to record highs, any disappointment on U.S. tariff measures could trigger a period of consolidation." In early trading, three-month copper futures on the London Metal Exchange are up 0.4% to $14,155 a metric ton, on track for their highest close since mid-May. (giulia.petroni@wsj.com)
0751 GMT - Shares in U.K. home builders fell after a report said the annual growth rate of average house prices was the slowest since November 2023. According to the Lloyds House Price Index, average house prices are at 299,253 pounds, just below the psychologically important 300,000 pounds, unchanged on the month and growing at only 0.1% annually. Prices are trapped in a narrow two-year range by stretched affordability and mortgage rates that refuse to fall far enough for long enough, RBC Capital Markets analysts Anthony Codling and Oliver Dyson say in a note. "The U.K. housing market is not broken, but it is barely breathing," the analysts say. Vistry is down 2.1%, with Berkeley and Persimmon both down 1.7%. (anthony.orunagoriainoff@dowjones.com)
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)
0723 GMT - Oversea-Chinese Banking Corp.'s interim dividend per share appeared to pleasantly surprise DBS Group Research's Rui Wen Lim, who notes that the 47 Singapore cent payout is higher than consensus estimates due to the lender's stronger profit. The interim dividend was also higher than 2025's S$0.41, given a 50% payout ratio. The Singapore lender has around S$800 million earmarked for its share buyback program that has yet to be deployed, suggesting it could be repurposed as a special dividend with the final 2026 payout, she says in commentary. She estimates the special dividend could come up to be S$0.18 a share. DBS maintains its buy rating and S$30.00 target price for OCBC, which rises 3.2% to S$30.26. (megan.cheah@wsj.com)
0710 GMT - Assicurazioni Generali's first-half earnings beat consensus expectations and the drivers of the Italian insurer's results suggest growth rates are likely to be sustainable, Berenberg analysts say in a note. The results were driven by premium growth in nonlife insurance, which seems due to stronger pricing, as well as new business growth in the life-insurance segment, the analysts say. The only earnings growth driver that was relatively volatile and might not be sustainable was profit growth at Banca Generali, they add. Shares trade 0.1% higher. (adria.calatayud@wsj.com)
0709 GMT - Singapore Exchange's multiasset platform can deliver growth visibility, Maybank Research's Thilan Wickramasinghe says in a research report. SGX's derivatives platform is deepening as a regional risk management venue as macroeconomic risks increase and capital rotates to Asia, the analyst says. Also, factors including Singapore's domestic growth and market reforms are intersecting to open a structural pathway for broader equity-market liquidity and capital-raising demand at SGX. Maybank Research lifts its FY 2027-2028 EPS estimates for SGX by 2%-3%. It raises the stock's target price to 28.33 Singapore dollars from S$25.25, with unchanged buy rating. Shares are 0.7% higher at S$24.49. (ronnie.harui@wsj.com)
0706 GMT - Market attention is likely to shift to Siemens's next big M&A move after the Healthineers spinoff, Deutsche Bank Research analyst Gael de-Bray says in a research note. The analyst expects the German conglomerate to deconsolidate around 12 billion euros of debt with the spinoff of Healthineers. Meanwhile, the giant posted solid third-quarter results which should lead to low single-digit consensus upgrades for earnings per share, de-Bray adds. (nina.kienle@wsj.com)
0625 GMT - Lanxess reassures with adjusted Ebitda guidance for the third quarter that sits in line with consensus and doesn't imply a stepdown compared to the second quarter, J.P. Morgan analysts say in a research note. The German chemical company also posted a slightly higher on-year free cash flow for the second quarter despite a more inflationary environment, which is encouraging, the analysts add. "Overall, we see this as a neutral to modestly positive print and expect the shares could outperform today," they say. (nina.kienle@wsj.com)
0618 GMT - Kakao is seen as facing a valuation discount due to slower-than-expected monetization of its artificial intelligence features and stagnant e-commerce growth, Nomura's Angela Hong says. While the South Korean mobile internet company has integrated OpenAI's ChatGPT and proprietary AI tool Kanana into its KakaoTalk messaging app, user engagement has yet to improve significantly, the analyst writes in a note. Kakao has partnered with local food delivery app Coupang Eats for its new AI-powered chat tab, but it remains unclear whether many KakaoTalk users will order food through the app instead of directly from Coupang Eats, she adds. Nomura cuts the stock's target price by 9% to 41,000 won while maintaining its neutral rating. Shares are 3.9% higher at 39,800 won. (kwanwoo.jun@wsj.com)
0614 GMT - Allianz's M&A priorities and current liquidity will be front of mind for investors following second-quarter earnings, analysts at RBC Capital Markets say in a note. The insurer has recently had strong performance, helped by the string of EPS-accretive bolt-on acquisitions, including HSBC Singapore Life, the PIMCO minority buyout, and UOB Asset Management, they say. Other key questions for the call will surround the sustainability of its life and health segment performance, the analysts add.
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