The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
1133 GMT - Cruise stocks have come under pressure, weighed upon by higher fuel costs, rising interest rates and geopolitical uncertainty. Viking distinguishes itself from other major cruise lines, though, marketing its smaller ships, included excursions and emphasis on time ashore to an older, more affluent customer base, StoneX analyst Mike Hickey says in a note. The company's direct marketing capability gives it a way to reach prospective guests and stimulate bookings before relying on broad fare discounts. Looking ahead to next year, Hickey says Viking's current booked-rate strength should help support continued growth, even as the company faces headwinds. StoneX initiates coverage of Viking with a buy rating and a $99 price target. Viking is up 1% to $80.32 premarket. (connor.hart@wsj.com)
1132 GMT - British energy major Shell should return to its $3.5 billion quarterly buyback from the fourth quarter onwards, HSBC's Kim Fustier writes in a note. Shell cut its quarterly run rate to $3 billion in the first quarter of the year. If Shell returns to its previous buyback rate, it would imply a 38% to 39% cash flow from operations payout ratio in 2026 and 2027, she says. This is just below the lower end of Shell's 40% to 50% through-the-cycle target, she notes. This potentially means there could be upside to the $3.5 billion figure, at least temporarily, she says. "But Shell management may prefer to remain on the conservative side," she adds. Shares fall 1.2% to 3,597 pence. (adam.whittaker@wsj.com)
1056 GMT - Climbing energy prices means the Bank of England is now on course to tighten policy, Morgan Stanley's Bruna Skarica and Fabio Bassanin say in a note. They change their BOE call to two quarterly interest-rate hikes in November and February. "While we still think--and with a decent degree of conviction--that any signs of an improvement in the supply in oil and refined products would leave the BOE on hold from here, it is challenging to maintain a prolonged hold as a modal call amid the recent Middle East newsflow," they say. The only catalyst for even stronger tightening would be a materially fiscally loose and inflationary budget announced next month, they say. (edward.frankl@wsj.com)
1052 GMT - Oil prices are broadly unchanged in afternoon trading, with both crude benchmarks on track for significant weekly losses amid hopes for diplomatic progress toward reopening the Strait of Hormuz. Front-month November Brent crude is down 1.1% to $105.44 a barrel, while WTI futures are down 1.8% to $92.90 a barrel. Still, supply risks remain elevated, with renewed Houthi attacks on Saudi Arabia keeping regional security concerns in focus. Kpler's head of crude analysis, Homayoun Falakshahi, said that "every 'productive talks' headline" should be treated as a short-lived market reaction to fade, rather than evidence of sustained de-escalation, until there is a concrete step such as an asset release, easing of the blockade or an actual resumption of transits. (giulia.petroni@wsj.com)
1023 GMT - European gas prices are on track for a weekly loss of more than 5%, pressured by hopes for diplomatic progress toward ending the Middle East war and mild seasonal temperatures that continue to delay heating demand. Still, while European Union officials say gas supplies to the region remain stable, storage levels are only about 70% full, leaving the market highly sensitive to potential disruptions. "Unlike oil, LNG flows are more constrained because they depend on specialized tankers and face greater exposure to security risks," analysts at ANZ say. "The market has tightened further as Norwegian piped flows to the continent have declined amid maintenance at gas facilities." In afternoon trading, the benchmark Dutch TTF contract falls 4.1% to 71.80 euros a megawatt-hour. (giulia.petroni@wsj.com)
0936 GMT - European stocks linked to the buildout in artificial intelligence rally as investors' enthusiasm around AI picks up. Frontier AI company Anthropic signed a computing deal worth at least $11.6 billion, offering a fresh tailwind for AI-linked companies as the buildout in infrastructure linked to the technology continues apace. ASML shares rise 2.3%, while Dutch peers BE Semiconductor and ASM International rise 1.6% and 1.4%, respectively. Chip makers Infineon and STMicroelectronics rise 1.7% and 2.4%, respectively. The upturn includes companies linked to the buildout in data centers, with Siemens Energy and electrification group Prysmian both up around 3%. A basket of European tech stocks adds 1.3%. (josephmichael.stonor@wsj.com)
0914 GMT - Malaysia's headline inflation could rise moderately to 1.9% this year instead of 2.1% forecast previously, RHB's Chin Yee Sian says in a note. Softer price pressures and higher fuel-subsidy quotas should keep inflation manageable, the economist writes. For the remainder of 2026 and into 2027, inflation will be shaped by global commodity prices, domestic policy changes and potential food-price pressures, she notes. Geopolitical uncertainties and prolonged Hormuz Strait disruptions could keep crude-oil prices volatile, but the pass-through from higher producer costs should be gradual. Price controls, subsidies and a stable ringgit may provide support, she adds. RHB expects Bank Negara Malaysia to hold rates at 2.75% in November before hiking by 25 bps in 1H in a policy-normalization move. (yingxian.wong@wsj.com)
0914 GMT - The Norwegian krone falls to a three-and-a-half week low against the euro, reversing gains after the Norges Bank raised interest rates by 25 basis points to 4.5% Thursday. The Norges Bank simply brought forward an anticipated rate rise and rates are now expected to remain unchanged until the end of the year, Commerzbank's Michael Pfister says in a note. "For the krone to benefit more significantly, Norges Bank will likely need to signal an even tighter monetary policy in the coming months." A fall in oil prices is also weighing on the krone as Norway is a major energy exporter. The euro rises to as high as 10.8550 krone, having reached a 10-day low of 10.7451 Thursday, according to LSEG. (renae.dyer@wsj.com)
0900 GMT - The prospect of a renewed rise in energy prices, strong U.S. economic data and a further widening in yields between French and German government bonds have the potential to weaken the euro, ING's Francesco Pesole says in a note. The euro could reach support levels of $1.1320-$1.1330 quickly if oil prices take another sharp leg higher and/or upcoming U.S. data are better than expected, he says. The risk of a wider French-German yield spread due to a deterioration in France's fiscal outlook is also unlikely to help the euro, Pesole says. The euro rises 0.1% to 1.1388 after reaching an eight-week low of $1.1358 Thursday, according to LSEG. (renae.dyer@wsj.com)
0857 GMT - United Utilities should outperform over the coming years after holding its guidance for fiscal 2027, J.P. Morgan analysts Pavan Mahbubani and Samanvitha Theegela write. The U.K. water company is performing in line with expectations and is on track to deliver 2 billion pounds of investment next year. The analysts see a backdrop of "attractive, inflation-linked regulation" to outperform in the medium term, but say fiscal 2026 lacks positive catalysts to drive a re-rating in the share price. JPM holds a neutral rating on the stock and a 14.50 pound price target. Shares are 0.7% higher at 14.08 pounds and 18% higher over the year to date. (joseph.wilkins@wsj.com)
0745 GMT - London's miners gain after oil prices ease. Brent crude and WTI fall as investors assess the likelihood that U.S.-Iran diplomatic efforts could reopen the Strait of Hormuz. Miners are some of the world's largest consumers of diesel and higher prices eat into margins. High oil prices also raise the prospect of interest rate rises to combat inflation. This would hurt investment and consumer sentiment, and drag on demand for mined minerals and metals. With sentiment improved, Glencore rises 2% while Anglo American gains 1.3%. Antofagasta is 0.9% higher. Precious metal miners Fresnillo, Hochschild Mining and Endeavour Mining all gain over 1.2%. Brent crude futures are down 1.1% to $105.45 a barrel, while West Texas Intermediate falls 1.9% to $92.85 a barrel.(adam.whittaker@wsj.com)
0736 GMT - European energy stocks open lower as oil prices slip. Brent crude and WTI have fallen as investors assess the likelihood that U.S.-Iran diplomatic efforts could reopen the Strait of Hormuz. Brent crude futures are down 1.1% to $105.45 a barrel, while West Texas Intermediate fall 1.9% to $92.85 a barrel. In London, BP falls 2% and Shell drops 0.4%. France's TotalEnergies is 0.8% lower and Spain's Repsol is down 0.6%. Italy's Eni falls 0.2%. Norway's Equinor is down 1.3%.
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