The latest Market Talks covering Energy and Utilities. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0718 GMT - European stock indexes open higher, with utilities and mining stocks leading the continent. All sectors except energy are in the green as the Stoxx 600 adds 0.6%. London's FTSE 100 rises 0.7%, led by a 2.3% gain for utilities group SSE. Metals miner Rio Tinto gains 2.2%. The French CAC 40 rises 0.3%, with hotel group Accor up 1.65%. Airbus adds 1.5%. In Germany, the DAX is up 0.6%. Heidelberg Materials and Rheinmetall gain 2% and 1.4%, respectively, as oil prices fall from earlier highs. Spain's IBEX 35 rises 0.8%, while the Italian FTSE MIB adds 0.5%. The Dutch AEX gains 0.5%, with semiconductor names trading steady. (josephmichael.stonor@wsj.com)
0139 GMT - Maiden output from Woodside Energy's Scarborough natural-gas project in Australia is the major swing factor for the company's 2H production, Macquarie says. Woodside has signaled it will ship a first cargo of liquefied natural gas from Scarborough some time between October and December. Macquarie forecasts production of some 900,000 tons of LNG from Scarborough in 4Q, but acknowledges limited visibility currently. Macquarie has a neutral call on Woodside and raises its price target by 1.5% to A$32.90/share to reflect stronger oil and LNG commodities price forecasts. Woodside is unchanged at A$31.48. (david.winning@wsj.com; @dwinningWSJ)
0136 GMT - Amplitude Energy's decision to move ahead with the East Coast Supply Project represents another positive step, says Euroz Hartleys. The final investment decision on the ECSP is "a major derisking milestone," analyst Declan Bonnick says. Amplitude has also provided greater visibility around the scope of the project, the development schedule and costs. First output of natural gas from the ECSP is forecast in 2028. "The A$190 million-A$210 million development cost remains consistent with prior capex expectations and appears in-line with consensus," Euroz Hartleys says. It has a buy call and A$2.80/share price target on Amplitude, which is down 1.8% at A$1.685. (david.winning@wsj.com; @dwinningWSJ)
0104 GMT - Tenaga Nasional's absorption of an estimated 120 million-150 million ringgit in fuel surcharges for September-December 2026 could be manageable and non-recurring, Hong Leong IB analyst Daniel Wong says in a note. The costs stem from the government's decision to raise the threshold for fuel surcharges and other electricity charges to 800kWh a month from 600kWh. The utility could remain well positioned to benefit from strong data center demand, with potential power-supply commitments reaching about 13GW as of June, he says. Grid upgrades and new generation capacity should support rising demand, while major investments are expected in 2027-2030, he adds. Wong sees the recent share-price sell-off as an attractive entry point. Hong Leong maintains its buy rating and 18.15 ringgit target price. Shares are 0.6% higher at 12.80 ringgit. (yingxian.wong@wsj.com)
0015 GMT - Oil prices are mixed in early Asian trade but may be weighed by signs of production recovery. Crude output from Saudi Arabia's East-West pipeline is going through more swiftly than anticipated, analysts say. Saudi Arabia's exports increased to 5.8 million barrels per day in September, the highest since February 2026, ANZ Research analysts say in a report. "The kingdom also resumed loading vessels at the Red Sea port of Yanbu via its East-West pipeline," the analysts add. Front-month WTI crude oil futures are little changed at $89.34 a barrel, while front-month Brent crude oil futures are 0.4% higher at $103.02 a barrel. (ronnie.harui@wsj.com)
2054 GMT - The decision to push ahead with phase two of the Canada LNG operation in Western Canada is a sign the country is again building big, Prime Minister Mark Carney says. He tells an audience that the more than C$30 billion investment to double LNG production will make LNG Canada the second-largest facility of its kind in the world. It also will create some 4,000 jobs at the peak of construction, he adds. will create over thousands of new jobs. And the Shell-led venture's final investment decision, TC Energy will move ahead with a multi-billion-dollar second phase of the Coastal GaslLink pipeline, which Carney says will create more than 2,000 jobs. Shell CEO Wael Sawan says the investment go-ahead reflects confidence in Canada as a place to invest and do business for the long-term. (robb.stewart@wsj.com; @RobbMStewart)
1833 GMT - TD Cowen weighs in on Monday's investor presentation by WSP Global. Analyst Michael Tupholme says the global engineering and services firm reiterated the significant opportunity across power and energy "supported by broad structural demand drivers beyond the AI & data center build-out." Importantly, he notes management stressed that "growth is not dependent on any single demand driver." Tupholme says WSP reaffirmed it's on track to achieve its overall 2027 financial targets including a 40% surge in net revenue and a 50% rise in adjusted Ebitda, all versus 2024 levels. (adriano.marchese@wsj.com)
1824 GMT - Doubling Canada's electricity supply and introducing more clean energy could offer significant benefits for the economy, new economic modeling suggests. A report from New Economy Canada and the Canadian Chamber of Commerce compares an electrified-economy with a business-as-usual future based on current policies and measures. It finds that leaning into electrification could add a cumulative C$3 trillion to the economy by 2050 and support 1.6 million additional jobs by that year, while delivering C$5 in economic benefits for every C$1 invested in the power sector versus business as usual. (robb.stewart@wsj.com; @RobbMStewart)
1534 GMT - Saudi Arabia leads major Gulf stocks lower Tuesday, with the Tadawul All Share Index falling 1.2%. Qatar's QE Index loses 1.1%, Abu Dhabi's benchmark index declines 0.3% and the Dubai Financial Market General Index slips 0.2%. Risks from the Middle East conflict remain elevated despite recovering regional oil flows. S&P Global Market Intelligence says its base case no longer assumes a clear end to the war, with Gulf exports likely to fluctuate as security conditions affect ships' willingness to transit the Strait of Hormuz. It expects only gradual improvement through 2027, with energy, freight, insurance and logistics costs remaining elevated. (farhan.rafid@wsj.com)
1419 GMT - Sterling shows little reaction after U.K. Prime Minister Andy Burnham announced plans to reform pensions in a speech Tuesday, as widely expected. From 2030 the government will adjust the triple lock on pensions, which ensures state pensions rise in line with average earnings, inflation or 2.5%, whichever is highest. Instead pensions will rise every year in line with inflation, or 2.5%. Burnham scrapped the earnings element, saying state pensions would hold their value "relative to earnings over time." He also pledged to build a national care service, create a public body to invest in the electricity grid and strengthen control of water companies. Sterling falls 0.2% to $1.3222 and is flat at 0.8573 per euro, both little changed from levels before the speech. (renae.dyer@wsj.com)
1405 GMT - U.K. utilities shares edge lower as investors react to Prime Minister Andy Burnham's proposal for a new public body to invest in Britain's electricity grid, AJ Bell's Russ Mould writes. Reports before market open Tuesday suggested GB Grid would increase competition for new grid projects. Prime Minister Burnham confirmed the plans in his afternoon address to the ruling Labour Party's annual conference Tuesday. The FTSE 100 utilities sector fell 1.2% at the open, before paring losses to trade down 0.15%. "While the market reaction suggests this is not considered to be an existential threat just yet, there will be concern that this is the first step on the road to renationalisation of the electricity network," Mould says. (josephmichael.stonor@wsj.com)
1326 GMT - The restart of the East-West pipeline in Saudi Arabia and the resumption of Red Sea oil exports has crude oil futures down 2% to $90.74 a barrel. This and oil tanker movement seen on the Strait of Hormuz are weighing on crude, although sentiment that any major developments in the U.S.-Iran conflict will wait until after November's midterm elections is expected to limit downward momentum, says Ritterbusch and Associates in a note. Brent crude falls 1.9% to $103.24 a barrel.
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