Global Equities Roundup: Market Talk

The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.

1134 GMT - U.A.E. banks remain well positioned to absorb potential capital outflows despite elevated regional geopolitical risks, S&P Global Ratings says. The banking system held about $247 billion in net external assets at the end of June, equivalent to roughly 42% of domestic loans and the strongest position among GCC banking systems. A large and diversified domestic deposit base and high-quality liquid assets provide an additional buffer, while banks' direct credit exposure to sectors most vulnerable to the conflict remains limited, S&P says. (farhan.rafid@wsj.com)

1128 GMT - U.S. stock futures fall into the red and losses for European equities deepen, as Brent crude's rise above $100 a barrel drags market sentiment. The Dow Jones Industrial Average continues Tuesday's pattern to lead the losses, with futures for the index shedding 207 points or 0.6%. S&P 500 futures fall 0.35% while Nasdaq futures slip 0.45%, after both indexes began the European trading day in positive territory. In energy-sensitive Europe, stock indexes are on pace to hand back more than a month's worth of gains. The Stoxx 600 drops 1.45% to lows not seen since July. The index is on course for its sharpest daily fall since July 8. (josephmichael.stonor@wsj.com)

1127 GMT - U.A.E. banks continue to lead lending growth in the Gulf despite regional geopolitical disruption, Kamco Invest says. Gross loans at U.A.E.-listed banks rise 4.5% from the previous quarter in the second quarter, the strongest increase among GCC markets, while central-bank data show systemwide credit growth of 18.1% on year. The lending outlook also remains firm, with First Abu Dhabi Bank raising its full-year loan-growth guidance to the upper end of its low-to-mid-teens range, Kamco says. (farhan.rafid@wsj.com)

1124 GMT - Heineken looks to be making moves to bolster control over its future sales growth, analysts at J.P. Morgan write. The world's second-largest brewer is focusing on dynamics beyond its core beer category, such as zero-alcohol products, and is looking for ways to capture growth across more premium areas and developed markets, JPM says, citing comments made by finance chief Harold van den Broek this week. "The group increasingly targets the total landscape of consumer needs rather than beer alone," the bank says. JPM has a neutral rating and a 70-euro target on the Amsterdam-listed stock. (joshua.kirby@wsj.com; @joshualeokirby)

1120 GMT - Lending growth at Gulf banks rebounds in the second quarter, suggesting the slowdown following the outbreak of regional conflict was relatively short-lived, Kamco Invest says. Gross lending at 55 listed GCC banks rises 2.6% from the previous quarter to a record $2.59 trillion, with all six GCC markets recording sequential growth. The recovery follows an eight-quarter low in lending growth in the first quarter. Aggregate net profit also reaches a record $17.7 billion, up 7.2% on year, showing continued resilience despite regional disruption. (farhan.rafid@wsj.com)

1116 GMT - European banking stocks slide as higher oil and gas prices raise the prospect of a sustained inflation shock. The Stoxx 600 Banks index trades 2.5% lower after Brent crude topped $100 a barrel and natural gas prices on the continent hit a three-year high. The fall arrests a steady rally in European banks, with the Europe-wide sector gauge up around 23% so far this year. Major losers include HSBC in London--down 2.3%--and Spain's Santander losing 3.6%. In Paris, BNP Paribas drops 2.6%. Meanwhile, analysts warn that European banks are in line for higher taxes, according to a Bloomberg report published Wednesday. (josephmichael.stonor@wsj.com)

1030 GMT - Inditex reported robust sales trends, but cost pressures seem evident, analysts at Deutsche Bank say in a note. The Spanish fashion group posted a 9% on-year sales increase from Aug. 1 through Sept. 7. However, it said that elevated transport costs are weighing on profitability. The pretax profit margin slipped to 19.5% for the first half from 19.6% a year earlier. Overall, the top-line is fine but higher operating expenses are weighing on margins, the analysts say. Shares fall 4.3% to 54.08 euros. (andrea.figueras@wsj.com)

0957 GMT - The stock market should continue to rally into the middle of 2027 as positive performance extends outside of tech to other sectors, Citi analysts write. "'Broadening' market performance is finally taking shape," the analysts write, with financial and materials stocks--as well as tech--seen outperforming the market. However, risks around equity performance are increasing, the analysts note. An escalation to the U.S.-Iran conflict, Federal Reserve rate hikes and volatility around elections could all weigh on sentiment, they say. Moreover, negative macro/political developments could compound volatility from stepped-up scrutiny around the global AI trade, they add. (josephmichael.stonor@wsj.com)

0954 GMT - Nestle's CFO Anna Manz sounded confident that the company is on the right track on its turnaround, Barclays analysts say in a note following the bank's Global Consumer Conference. The main takeaway is that the company has the right playbook, the analysts say. However, what is most important is execution, they add. Further proof is needed to show that Nestle is becoming a fundamentally different company, they say. Nestle shares are down 1.2% at 79.4 Swiss francs. (aimee.look@wsj.com)

0940 GMT - Global chip foundry revenue is set to extend record growth in 3Q, driven by rising production of next-generation AI and high-performance computing chips, seasonal smartphone introductions and concerns over tighter mature-node capacity, TrendForce says. The world's top 10 foundries posted combined revenue of $53.5 billion in 2Q, up 11.5% sequentially. TSMC retains its dominance with a 72.5% market share, while Chinese chip maker SMIC narrowed the gap with Samsung after 2Q revenue surged 20% to more than $3 billion. SMIC's share rose to 5.4% from 5.0%, approaching Samsung's 5.9%, as demand strengthened for AI peripheral chips, server networking products and consumer electronics. Samsung's revenue rose 1.8%, but its market share slipped as rivals expanded at a faster clip, TrendForce says. (sherry.qin@wsj.com)

0933 GMT - Rightmove's investment into AI is seen more as a tech catch-up than a proactive reinvestment, Stifel analyst Clement Genelot says in a note. The property portal appears burdened by time-consuming cloud migrations and legacy system overhauls, it has lagged behind its primary rival Scout24 in AI product rollouts and faces years without incremental AI revenue, leaving it scrambling simply to keep pace, Genelot says. Its new long-term plan has deliberately set a low bar as it assumes it won't make any extra money from new AI features between 2026 and 2028 beyond what's already included in existing subscription packages, he says. Stifel initiates cover with a sell rating and a 356 pence target price. Shares are down 4.5% at 469.70 pence. (anthony.orunagoriainoff@dowjones.com)

0921 GMT - Artificial intelligence should transform the European digital classifieds sector, rather than eliminate it, Stifel's Clement Genelot writes in a note. While European digital classifieds have been the market's most reliable performer in terms of growth for a decade, the sector has lost more than 40% of its market value since mid-2025, Genelot says. The decline is barely due to the earnings, he notes. Instead, investors have stopped believing in a gatekeeper model in an AI world, he says. That verdict is too broad, he adds, noting that debate on AI is still open. Large-language models that support AI still account for less than 0.5% of portal traffic and have so far opted for partnership over disruption, he says. However, there is a real risk of competition from new AI-native players.