The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0818 GMT - The household support measures presented in Malaysia's 2027 budget is expected to add an initial 0.4 ppts to GDP growth, Ram Ratings says in a note. The measures are in particular expected to help sustain consumption amid external uncertainty, as the government forecasts growth of 4.2%-5.2% next year. The measures include higher minimum wages, income tax relief and larger cash aid. Although the budget includes few significant measures to broaden revenue sources, the targeted fiscal deficit of 3.3% of GDP reflects the government's continued commitment to fiscal consolidation, it says. (yingxian.wong@wsj.com)
0817 GMT - BP's planned strategy update in December is earlier than expected, Barclays Lydia Rainforth writes. It will give investors a clearer view of CEO Meg O'Neill's approach after eight months in the role come December, she writes. The British energy major's third-quarter update demonstrates the strength of its trading arm and integrated model, she says. Following the update, Barclays increases its full-year replacement-cost operating profit estimate by around 5% to $11 billion and its adjusted net income estimate by around 20% to $6.5 billion. Shares rise 1.4% to 596 pence.(adam.whittaker@wsj.com)
0816 GMT - Shares of European semiconductor companies are in decline after investors dumped Asian stocks linked to artificial intelligence. South Korea's SK Hynix closed 10% lower, while Samsung Electronics shed 7.4%. In Japan, chip-making equipment maker Tokyo Electron lost 7.2%. In Europe, shares of Dutch semiconductor-equipment maker ASML Holding and smaller rival ASM International are down 1.8% and 2.3%, respectively. Dutch supplier of semiconductor assembly equipment BE Semiconductor Industries is down 1.5%. German chip maker Infineon Technologies stock loses 1.9%. STMicroelectronics shares are down 2.5%. Meanwhile, the E-mini Nasdaq 100 futures contract is 0.7% lower, pointing to a weak opening for tech stocks in the U.S. (mauro.orru@wsj.com)
0815 GMT - Digital Core REIT's guidance for FY 2027 could encourage more Singapore-listed real-estate investment trusts to follow suit, potentially boosting unit prices for REITs trading at steep discounts to their net-asset values, Citi analyst Brandon Lee says in a note. Digital Core's forward guidance includes an estimated distribution per unit of 4.15-4.25 cents, partly thanks to full-year contribution from a portfolio reconstitution. While majority of REITs give rough projections on debt cost and rent reversions, none besides CapitaLand Ascott Trust guides on distributions per unit, he notes. Citi retains its buy rating and 69 cents target price for Digital Core on cheap valuations. Units are flat at 42 cents. (megan.cheah@wsj.com)
0812 GMT - BMI raised its average copper price forecast for this year to $13,500 a metric ton from $12,700 a ton, citing tariff-related market disruptions and persistent supply constraints. "For the remainder of 2026, we expect copper prices to remain volatile and highly sensitive to tariff-policy developments, with the eventual Washington decision likely to set the near-term market direction, while broadly intact structural tightness should temper the extent of any correction," analysts at the firm say. Over the longer term, copper prices are expected to be supported by a persistent supply deficit and rising demand as the energy transition gathers pace. BMI forecasts copper prices reaching $17,000 a ton by 2035, driven by electrification and investment in clean-energy infrastructure. In early trading, three-month copper futures on the LME are flat at $14,624.50 a ton. (giulia.petroni@wsj.com)
0806 GMT - China's data-center investment story is shifting from securing power capacity and customer contracts to generating attractive returns on invested capital, Goldman Sachs analysts write in a note. Higher U.S. interest rates have sharpened investors' scrutiny on whether accelerating AI infrastructure spending can generate returns that exceed the cost of capital, they add. While moving closer to AI workload monetization offers greater ROIC potential, it also exposes operators to greater execution, technology and earnings risks, they say. Powered-shell data centers remain lower-return assets, the analysts say.(jiahui.huang@wsj.com; @ivy_jiahuihuang)
0800 GMT - BP's third-quarter trading statement confirms its deleveraging efforts are working, J.P. Morgan's Matthew Lofting writes. The update shows a significant reduction in net debt and should push expectations for earnings and cash flow from operations higher due to a strong trading performance and lower group tax rate, he says. Shares rise 1.46% to 596 pence. (adam.whittaker@wsj.com)
0759 GMT - China's cut on export tax rebate for NEVs will cost manufacturers roughly 4,000 to 6,000 yuan per unit, Morningstar senior equity analyst Vincent Sun writes in a note. With the policy taking effect April 1, 2027, automakers will likely accelerate shipments in late 2026 and 1Q27 to lock in the 13% rate before the deadline, he adds. Chinese automakers will focus more on quality, brand and high price segments instead of only relying on tax subsidies for low-margin, excessive export volumes, he says. The policy will shift the focus away from broad export volume subsidies and toward global manufacturing and supply chain integration, he adds.(jiahui.huang@wsj.com; @ivy_jiahuihuang)
0742 GMT - NatWest Group is the best placed among U.K. banks to benefit from higher rates, Barclays' Aman Rakkar writes. The bank has a best-in-class structural hedge tailwind, which means it has the clearest potential upside from the sharp repricing higher in U.K. rates, Barclays says. The integration of Evelyn Partners is also progressing well, while the continued rise of term-funding costs should be manageable. Any potential upcoming increase in U.K. bank taxes should have a modest impact, the analyst says. This already seems well discounted in NatWest's share price, Barclays adds. Barclays raises its recommendation on the stock to overweight from equal weight, and increases the price target to 850 pence from 740 pence. Shares are up 3.15% at 674.20 pence. (michael.hennessey@wsj.com)
0738 GMT - The memory market is still cyclical despite the current AI-driven boom, Morgan Stanley analysts say in a research note. Memory demand is structural so far as demand from artificial-intelligence data-center construction is still outstripping what the industry can supply, while on-device AI and humanoid robots also require increasing memory, they say. However, "in this demand-led super cycle, we think super profits will eventually bring on new supply, with inevitable consequences for returns and ultimately for share prices," they say. Historically, memory companies have been poor at predicting their own inflection points, they say. China will also be a major swing factor, as CXMT is expanding fast in DRAM and HBM3 and YMTC is already a global competitor in NAND, they add. (sherry.qin@wsj.com)
0738 GMT - Indonesia's telecommunications companies should benefit from Southeast Asia's AI-ready data-center boom, as tightening power availability in neighbors Singapore and Malaysia lead operators to seek alternative host markets, say CGS International analysts in a note. Industry participants currently view Indonesia's data-center development stage as comparable with Malaysia's early data-center expansion cycle in 2022. The analysts expect investor attention on the market to grow and increasingly focus on opportunities related to AI specialized cloud computing providers, given Indonesia's earlier development stage. Indosat is seen as Indonesia's strongest AI proxy, as it has exposure across the AI value chain, including an Nvidia cloud partner platform. Other well-positioned players with a data-center footprint include Telekomunikasi Indonesia, CGSI adds. (megan.cheah@wsj.com)
0736 GMT - Comex gold futures may retest support at $4,150 per ounce, RHB Retail Research's Joseph Chai says in a research report. The futures' latest negative price action on the daily chart reaffirms that immediate resistance is still firm at the $4,300-per-ounce level, the analyst says. The relative strength index also continues to move sideways below the 50% threshold, suggesting that bullish momentum remains weak, Chai says. Initial resistance is pegged at $4,300 per ounce followed by subsequent resistance at $4,400 per ounce, the analyst adds. Spot gold is 0.5% higher at $4,190.55 per ounce.
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