The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0724 GMT - Societe Generale provided a credible path to its higher 2029 profitability target, Jefferies' Joseph Dickerson and Theo Massing say. The French bank forecasts return on tangible equity between 13% and 14% by 2029, compared with the consensus of 12.6%. "The beauty of today's plan is that management clearly have visibility on the cost trajectory and have outlined a series of highly idiosyncratic actions on the cost base," Jefferies says. The 3% revenue growth target is a lowball, Jefferies says, but it is not driven by more corporate and investment banking growth from 2026. The improvement to profitability isn't linked to French bond yield spreads or politics, and is instead based on costs and growth in digital unit BoursoBank, Jefferies adds. Shares are up 4.9%. (michael.hennessey@wsj.com)
0723 GMT - European stock indexes all gain at the open, retracing some of Friday's sharp losses. Banks and technology stocks rise, while energy-sensitive stocks are supported by a fall in oil prices. The Europe-wide Stoxx 600 is 0.65% up. London's FTSE 100 rises 0.3%, boosted by a 2% gain for Barclays, though oil majors damp gains--BP falls 1.5%. The German DAX adds 0.7%, led by chip maker Infineon--up 2.5%. Volkswagen falls 1.5% after it cut guidance Friday. The French CAC 40 rises 0.6% as SocGen jumps 3.4% after the bank said it aims to boost profitability. Italy's FTSE MIB is up 0.7%, while the Spanish IBEX 35 is 0.65% higher. In Amsterdam, the AEX rises 0.5% as both software and hardware technology stocks gain. ASML jumps 2.8%.(josephmichael.stonor@wsj.com)
0717 GMT - European energy stocks start the week in the red as oil prices continue to slide. Diplomatic efforts to end the conflict in Iran are putting downward pressure on oil. President Trump is set to meet Gulf leaders on the sidelines of the U.N. General Assembly in New York this week. Immediate supply concerns also ease slightly. Brent crude is down 1.7% to $102.08 a barrel, while the front-month WTI contract slides 2% to $98.33 a barrel. In London, BP falls 1.6%. Shell, Italy's Eni and Spain's Repsol are all around 1% lower. France's TotalEnergies is down 0.8%. (adam.whittaker@wsj.com)
0712 GMT - Suntec Real Estate Investment Trust likely needs a larger divestment transaction, potentially involving a Singapore asset, to move the needle for its balance-sheet strength and capital recycling capacity, says DBS Group Research's Dale Lai in a note. The scope of the REIT's strategic review was narrower than the analyst would have liked. He says that the Australian asset sales might not create sufficient capacity for a large acquisition from its sponsor. "Overall, we see the current exercise as a positive first step, but not yet the full portfolio reset," he says.A more substantial reshaping of the portfolio might be necessary if management intends to pursue meaningful inorganic growth, he adds. DBS retains its buy rating and 1.70 Singapore dollar target price. Units drop 1.45% to S$1.36. (megan.cheah@wsj.com)
0710 GMT - Berenberg analysts downgrade pretax profit forecasts for Barratt Redrow's fiscal years 2027-29 after the home builder trimmed sales guidance for fiscal 2027. Resurgent build costs--the company guided for 3% to 4% cost inflation--and continuing margin and affordability pressures are also among the reasons behind the downgrade, Berenberg analyst Harry Goad says. Pretax profit expectations for fiscal 2027 stand at 455 million pounds, down from 460 million pounds. For fiscal years 2028 and 2029, forecasts now stand at 539 million pounds and 655 million pounds respectively, down from a previous 560 million pounds and 682 million pounds, Goad says. Although Berenberg's baseline forecasts don't factor in government support for home buyers, any future policy support would be a net positive, Goad says. Shares are down 1.1% at 302.50 pence. (anthony.orunagoriainoff@dowjones.com)
0705 GMT - South Korea's trade surplus could hit a monthly record in September on strong semiconductor exports, Citigroup's Jin-Wook Kim says. The economist expects the surplus to reach $42.70 billion, widening from the prior month's revised $34.79 billion and surpassing the previous record of $35.91 billion set in June. Semiconductor exports hit another record high in the first 20 days of September, with growth accelerating from the same period in August, Kim says. Citi forecasts the country's full-month exports to jump 68.4% from a year earlier and imports to rise 21.0% in September. Citi expects headline inflation to remain at 3.0% in September, following 3.1% in August. (kwanwoo.jun@wsj.com)
0657 GMT - Bitcoin remains elevated above $81,000 after reaching a two-and-a-half-week high overnight. Bitcoin is supported by stronger exchange traded fund inflows, positive regulatory developments and investors closing earlier bets against the cryptocurrency, Zaye Capital Markets analyst Naeem Aslam says in a note. The U.S. Securities and Exchange Commission has introduced a five-year exemption for platforms that facilitate trading tokenized stocks and other securities through blockchain technology. This could strengthen confidence in the wider blockchain ecosystem by reducing uncertainty around how institutional products and trading venues will operate, Aslam says. A more constructive U.S. tone ahead of talks with China could also improve risk appetite, he says. Bitcoin rises 0.5% to $81,520 after reaching as high as $82,050 overnight, LSEG data show. (renae.dyer@wsj.com)
0634 GMT - The dollar rises as it continues to receive support from expectations for further interest rate rises by the Federal Reserve. The Fed voted unanimously to raise rates by 25 bps last week and officials pencilled in at least one more increase by year-end. "Although further U.S. rate hikes had already been largely priced in and longer-term inflation expectations had remained stable near the Fed's inflation target, there apparently remained some doubt as to whether the central bank would actually be willing to raise rates sufficiently quickly and decisively," Commerzbank's Thu Lan Nguyen says in a note. The DXY dollar index rises 0.1% to 100.335 after reaching a seven-week high of 100.564 Friday.(renae.dyer@wsj.com)
0626 GMT - Kingboard Laminates' revenue is likely to be supported by stronger laminate average selling prices and new fiberglass yarn capacity, says DBS Group Research's Tsz Wang Tam in a note. Laminate average selling prices are likely to grow more than 30% in 2026, before rising a further 15% in 2027 and 10% in 2028, supported by artificial-intelligence yarn and fabric shortages, the analyst says. The analyst projects the copper-clad laminate producer's 2026-2027 top line to grow 23%-61%, while earnings are expected to gain 24%-179%. DBS starts its coverage with a buy rating and target price of 67.50 Hong Kong dollars. Shares are up 1.3% at HK$47.70. (megan.cheah@wsj.com)
0555 GMT - Despite its resilience, Hermes also faces industry challenges, including subdued Chinese demand environment over the summer, analysts at Bernstein write in a note. The luxury sector has been dealing with lower demand for luxuries in China, once a key growth driver for high-end brands. While the Birkin bag maker has been among the most resilient companies in the sector, it isn't immune to the broader trend, the brokerage says. "At current valuation levels Hermes is compelling for medium-term investors," they say.(andrea.figueras@wsj.com)
0551 GMT - Volkswagen's recent agreement to further cost cuts was a positive surprise, but the next steps will prove much harder, Bernstein analysts write. VW group last week slashed guidance due to around 9 billion euros of fresh charges. The German carmaker now expects a 2026 operating return on sales of up to 1%, against previous guidance of 4.0%-5.5%. The bank says it isn't hard to place a much higher valuation on VW group assets than the current stock price, with VW's 75% stake in Porsche AG worth 31 billion euros at the close on Friday versus VW group's then 38 billion euro market capitalization. There are also some positive signs with VW's new vehicle platform and EVs, the bank adds. "But we are a long ways from fixing decades of cost build up and strategic mistakes." (dominic.chopping@wsj.com)
0545 GMT - Weather phenomenon El Nino is starting to make its mark on agriculture production, with the peak of the impact expected in the first quarter of 2027, analysts at J.P. Morgan say in a note. El Nino in 2026 has been intensifying rapidly, and the analysts say that risk premiums could evolve across exposed agriculture commodity prices through the end of the year and start of next year. More clarity will come when harvests ramp up, as the hit on production comes to light, they say.
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