The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0907 ET - Yields on U.K. 10-year government bonds, or gilts, accelerate after U.S. producer price index data came in stronger-than-expected. The annual PPI rose 5.4% in August, above the 5.3% consensus forecast by economists in a WSJ poll. The data raises inflation worries and the prospects of the Federal Reserve increasing rates in the coming months. Ten-year gilt yields climb 8 basis points on the day to 5.348%, highest since 2007, LSEG data show. (miriam.mukuru@wsj.com)
0906 ET - European energy stocks trade higher in afternoon trade as oil ticks above $105 a barrel. Brent crude trades 4.5% higher at $105.80 a barrel while WTI tops $100 a barrel after rising nearly 5%. The rally comes as traders assessed escalating attacks on Gulf shipping and renewed Houthi strikes on Saudi Arabia. In London, BP gains 2.5% and Shell rises 2%. Norway's Equinor is up 2.4%. Spain's Repsol, France's TotalEnergies and Italy's Eni all rise over 1%. (adam.whittaker@wsj.com)
0854 ET - Saudi Aramco could grow operating cash flow by around 30% by 2030, Barclays analyst Lydia Rainforth writes after hosting the company at the Barclays Energy-Power Conference. The Saudi Arabian national oil company expects gas developments to add approximately $12 billion to $15 billion of incremental cash flow over the period, she says. Secondly, the company expects improved downstream performance to add up to $10 billion, she says. And finally, oil and gas production growth will contribute, with the company estimating that each additional 1 million barrels a day generates approximately $11 billion to $12 billion at the 2025 crude oil price, she says. Aramco has the opportunity to add 2 million barrels a day of additional production. (adam.whittaker@wsj.com)
0802 ET - Saudi Aramco has the flexibility to rapidly increase oil supply, Barclays analyst Lydia Rainforth writes after hosting the company at the Barclays Energy-Power Conference. The Saudi Arabian national oil company can increase its output to 10 million barrels a day in two days, and reach 12 million barrels a day within approximately three weeks, she writes. "This responsiveness gives Aramco an ability to add supply materially faster than new industry projects can be developed," she writes.(adam.whittaker@wsj.com)
0747 ET - Betting against eurozone banks should help protect investors against market stress stemming from the French presidential election in 2027, Bank of America analysts write. The Europe Stoxx Banks index will likely fall if French political risk resurfaces via poll gains for populist parties on the left and right, they say. The index is vulnerable to a widening in yields between French OATs and German Bunds, they say. Investors should also bet on stock-market volatility rising around the time of the election itself, they say. Dispersion between different European bank stocks will also rise in the event of a populist party appearing on track to gain power, they say. (josephmichael.stonor@wsj.com)
0741 ET - Nordex could benefit from surging power demand from AI, data centers and industrial expansion in the U.S., Mwb analyst Leon Muehlenbruch says in a note. "Despite Washington's tougher stance on wind, attractive generation costs and short deployment times suggest that economics could ultimately outweigh politics," Muehlenbruch says. This would support the German wind-turbine maker, as Europe and particularly Germany approach a potential peak, according to Mwb. Even so, much of the operational improvement is priced in to Nordex's share, and Mwb maintains its buy rating on the stock with a 44-euro price target. Nordex trades 1.0% higher at 39.94 euros. (sarah.sloat@wsj.com)
0731 ET - Technoprobe is given a boost by positive August revenue figures from its largest customer, Taiwan Semiconductor Manufacturing Company, Equita's Alberto Gegra writes. TSMC posted August revenue of around $16 billion, a 53% acceleration on-year. "This is a very strong figure," Gegra writes. TSMC contributes directly or indirectly to between 50% to 60% of Milan-listed Technoprobe's revenue, the analyst estimates. Strong demand from TSMC will support Technoprobe's investment in advanced semiconductor testing technology. TSMC's strong revenue also reaffirms the case for Technoprobe to further expand its capacity. Technoprobe shares jump 6.7%, leading the Europe-wide Stoxx 600 index. (josephmichael.stonor@wsj.com)
0631 ET - Oil prices extend gains, with Brent crude pushing past $100 a barrel as fresh clashes between the U.S. and Iran deepen concerns over supply disruptions and the impact of a prolonged war on the broader economy. Brent crude rise 0.8% to $102 a barrel, while WTI futures are up 1.4% to $97.38 a barrel. Traders now await the release of weekly inventory data from the Energy Information Administration later on Thursday, with a particular focus on distillate stock changes given the current tightness in global diesel markets. OPEC and the IEA will also release their monthly oil reports this week. (giulia.petroni@wsj.com)
0616 ET - Palm oil fell during the Asian trading session. Prices were likely pressured by overnight weakness in rival soy oil, Kenanga Futures writes in a note. Data from cargo surveyor AmSpec Agri Malaysia estimated that Malaysia's palm oil exports during the Sept. 1-10 period fell 17% on month, indicating weaker demand. The Bursa Malaysia Derivatives contract for November delivery fell 81 ringgit to 4,885 ringgit a ton. (kimberley.kao@wsj.com)
0551 ET - Galp Energia's oil and gas projects in Namibia are a major source of long-term upside, Barclay's Naisheng Cui writes. The Portuguese energy company could potentially double its production over the next decade through Bacalhau in Brazil and the Namibia assets, he writes. The Venus development is in the final stretch ahead of final investment decision--when the project would move to its development phase--and the economics continue to meet the investment criteria, the company said at the Barclays Energy-Power Conference. Attention is also shifting toward the next appraisal campaign of Namibia's Mopane, with the company planning three wells, Cui says. "We continue to view Namibia as one of the most significant sources of long-term optionality within the European energy sector," he says. Shares trade flat at 21.40 euros.(adam.whittaker@wsj.com)
0516 ET - Nintendo's expanded 2027 software pipeline should support long-term earnings growth, but investors are likely to focus on the lack of near-term catalysts following a series of game announcements, Citi analyst Tokiya Baba writes in a note. The Japanese games giant unveiled several coming first-party titles during its Nintendo Direct presentation this week. While Citi expects near-term pressure on the stock as investors digest recent announcements, it views any pullback as a buying opportunity and maintains its 9,800 yen target price, citing expected Switch 2 sales growth and the strength of Nintendo's intellectual property portfolio. Nintendo shares last ended 4.90% lower at Y7,989. (sherry.qin@wsj.com)
0513 ET - Fever-Tree Drinks is showing good U.S. momentum following its tie-up with Molson Coors, Ed Mundy at Jefferies says. The U.K. maker of tonics and mixers reported an 11% organic increase in U.S. revenue over the first half of the year, outstripping wider group growth, with CEO Tim Warrillow saying the partnership with Molson Coors "is delivering." The American brewer last year signed a deal to acquire a minor stake in Fever-Tree and to produce and distribute its drinks in the U.S. The first-half sales results provide "early proof points of U.S. growth acceleration," Mundy says, noting the partnership's boost to the company's scale and execution capability in the U.S. Jefferies has a buy rating and a 1,100-pence target price on the London-listed stock. Shares lose 6% to 764.5 pence.
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