The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0924 ET - U.S. natural gas futures are lower as the October contract debuts at the front of the curve. Late summer weather continues to support prices, with high to very high demand seen for the next two weeks, NatGasWeather.com says in a note. "Overall, weather patterns remain plenty hot enough the next 15 days and solidly to the bullish side," the forecaster says. However, "the weather data likely trended too hot and is susceptible to cooler trends in the midday data and/or over the weekend." Nymex natural gas is down 1.2% at $2.879/mmBtu.(anthony.harrup@wsj.com)
0910 ET - Crude futures are lower and on track for weekly losses as the market remains optimistic about the amount of oil making it out of the Persian Gulf region. Flows through the Strait of Hormuz appear to be hitting highs not seen in over a month, Alex Hodes of StoneX says in a note. "Hopes of a 'temporary opening' of the strait have alleviated some pressures on the market--but no peace deal has been confirmed and although the rhetoric has softened somewhat, continued disruptions are expected," he says. WTI is down 1.2% at $82.51 a barrel, and most active Brent is off 1.2% at $87.48. (anthony.harrup@wsj.com)
0856 ET - Canadian economist David Rosenberg reckons that President Trump's decision to escalate trade tensions between Ottawa and Washington by issuing an executive order to rename Lake Ontario as Lake America could add further weakness to the U.S. dollar. "This childish behavior out of the White House is yet another reason to adopt a dire view of the U.S. dollar," says Rosenberg, head of market-strategy firm Rosenberg Research. "Even reserve currencies require global investor confidence. And it is being lost," says Rosenberg, citing the trade conflict with Canada and the war in Iran. (paul.vieira@wsj.com; @paulvieira)
0654 ET - High energy prices and food inflation could drive U.K. headline inflation above 4% by early 2027, causing the Bank of England to increase interest rates, RBC BlueBay Asset Management's Mark Dowding says in a note. Energy costs are expected to rise after the U.K. energy regulator Ofgem announced a 4% increase in domestic energy bills from October, Dowding says. A further increase of as much as 9% in energy bills may follow in January, he says. Markets fully price in one quarter-point BOE rate increase in 2026, and a possible second rate rise by April 2027, LSEG data show. (miriam.mukuru@wsj.com)
0517 ET - The cost of insuring U.S. investment-grade credit against default stays unchanged as investors await the Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole Symposium due at 1400 GMT. Markets' attention will be on any clues on the possible path of future Fed interest-rate decisions given increased inflation concerns. Warsh could also discuss AI and U.S. productivity, UBS Investment Bank economists say in a note. The North American investment-grade credit default swap index is unchanged at 50 basis points, S&P Global Market Intelligence data show. (miriam.mukuru@wsj.com)
0408 ET - Bitcoin retreats, staying below the key $80,000 level after briefly climbing to a 3-month high of 81,326.81 overnight. Demand for bitcoin has been rising as investors seek alternative investment opportunities to the U.S. dollar following the recent announcement by the Treasury about doubling buybacks of long-dated U.S. government bonds. However, it has failed to sustain any gains above $80,000, with profit-taking quickly setting in above that level. Bitcoin falls 0.4% to 79,741.00, LSEG data show. (miriam.mukuru@wsj.com)
0348 ET - Shares in London-listed miners rise as European markets open strongly. Across the board, indexes in the region rise, with banking stocks recovering some of Thursday's loses. Luxury stocks in France and auto stocks in German perform well. For miners, the wider positive outlook is also underpinned by strong gold prices, with futures at $4,653.90 a troy ounce on safe-haven buying. Precious metals miner Hochschild Mining gains over 3% while Endeavour Mining is up 2.3%. Diversified miner Anglo American is up 1% while copper miner Antofagasta rises 1.3%.(adam.whittaker@wsj.com)
0332 ET - Yields on U.K. government bonds, or gilts, rise ahead of U.S. Federal Reserve Chairman Kevin Warsh's speech at the Jackson Hole Symposium due at 1400 GMT. Investors await his views on the economy and inflation as they seek to gauge the possible path of future Fed interest-rate decisions. Still, Warsh has said he is against giving forward guidance. "Even though we don't expect much to work with, all words will be weighed carefully by markets," ING analysts say in a note. Investors will also be looking for reassurance on the Fed's independence. Ten-year gilt yields climb 2.1 basis points to last trade at 5.049%, Tradeweb data show. (miriam.mukuru@wsj.com)
0328 ET - Oil prices edge lower but trade above midweek lows, as earlier hopes for an advance in peace talks and the reopening of the Strait of Hormuz are fading. In early European trade, Brent crude oil for October delivery slips 0.3% to $89.42 a barrel, while WTI is down 0.3% at $83.25 a barrel. The White House has told mediators the U.S. will not return to temporary peace terms agreed with Iran in June, The Wall Street Journal reports. Signs that producers in the Persian Gulf are managing to export through the strait are limiting oil's rise, ANZ analysts write. Satellite images shows that Saudi Arabia's oil loadings inside the Persian Gulf are rising, they note. (josephmichael.stonor@wsj.com)
0301 ET - The U.S. dollar trades steady, awaiting new impetus from Federal Reserve Chairman Kevin Warsh's keynote speech at the Kansas City Fed's Jackson Hole symposium later on Friday. Other Fed speakers on the opening day of the symposium on Thursday "struck a notably hawkish tone" by warning on inflation, says Danske Bank's Jesper Fjarstedt in a note. However, the dollar has failed to firm, with all eyes on Warsh. Money markets continue to price a 65% probability of unchanged rates at the Sept. 16 Fed rate decision, according to LSEG. The DXY index, which measures the dollar against a basket of currencies, is stable at 99.178. (emese.bartha@wsj.com)
0257 ET - Ithaca Energy has solid operations and balance sheet, aligned shareholders setting a clear direction and sector-leading optionality, Jefferies analyst Mark Wilson writes. The U.K. energy company is on the cusp of inclusion in the FTSE 100 after impressive second-quarter results, he says. Its shares have another potential catalyst in the form of potential approval for production start-up at its Rosebank development and sector-leading M&A options, he adds. Shares closed Thursday at 271.40 pence.(adam.whittaker@wsj.com)
0253 ET - Eurozone government bond yields rise in early trade at a faster pace than their U.S. peers, with the 10-year Bund yield rising to a 15-year high of 3.276%, according to Tradeweb data. "The outlook for bond markets ahead of the weekend is poor," Commerzbank's Christoph Rieger says in a note. "Rising oil prices, higher eurozone inflation, and a hawkish European Central Bank could push 10-year Bund yields to new highs even before [Federal Reserve Chairman Kevin] Warsh's keynote address," the head of rates and credit research says.
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