The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
2054 ET - CSE Global's outlook appears upbeat to UOB Kay Hian analysts, citing the company's expectation of more data-center contract wins by end-2026. The Singapore technology company's data-center exposure to U.S. government end-users provides insulation against funding risks, given their relatively low credit risk and long-term project commitments, the analysts say. The company's work with a second so-called hyperscaler offers further growth opportunities as the company expands its presence in the U.S., they add. They expect CSE Global to post stronger 2H margins as start-up costs at some facilities normalize. UOB Kay Hian maintains its buy rating and 1.79 Singapore dollar target price. Shares last closed at S$0.935. (megan.cheah@wsj.com)
2043 ET - Oil rises in early Asian trade amid attacks on vessels in the Strait of Hormuz, a key waterway for oil transportation. Iran's Islamic Revolutionary Guard Corps said that "two non-compliant" oil tankers struck mines in the strait, ANZ Research analysts say in a report. "At least 18 vessels have been hit over the past two weeks, according to ship tracking data from Kpler," the analysts add. Front-month WTI crude oil futures are up 0.7% at $93.52 a barrel, while front-month Brent crude oil futures are 0.7% higher at $109.54 a barrel. (ronnie.harui@wsj.com)
2000 ET - Contemporary Amperex Technology's A and H shares may be under pressure as its 2026-2028 earnings forecasts are likely to be cut further, says Jefferies analyst Kelly Zou in a note. The battery maker's 3Q results missed Jefferies' expectations, with unit net profit falling on quarter, Zou says. A 10% cut to 2027 profit forecasts could make shares look more expensive, lifting valuation multiples to 12x from 10x for A shares and 16x from 14x for H shares. Jefferies has a buy rating with an A-share target price of 535 yuan. CATL's A shares closed nearly 3% lower at 259.08 yuan Tuesday. (venkat.pr@wsj.com)
1858 ET - Beach Energy achieved a very strong quarter operationally in 1Q, says Euroz Hartleys. Record revenue of A$565 million was supported by strong realized prices and improved production. "The company is on track to meet consensus production numbers, with a continued strong macro providing potential further upside to current earnings expectations," analyst Declan Bonnick says. Ahead of the update, Euroz Hartleys had forecast FY Ebitda of A$1.096 billion. Consensus hopes are for A$1.123 billion. Beach's share price ended Tuesday at A$0.91. (david.winning@wsj.com; @dwinningWSJ)
1836 ET - The current strength of U.S. steel spreads are cementing Jefferies's bullish stance toward BlueScope Steel. Jefferies expects Bluescope to achieve 1H Ebit of A$960 million. That's at the top end of BlueScope's A$860 million-A$960 million guidance. "We see further upgrade risk for 2H27 given spot of US$890/ton and consensus assuming US$650/ton," analyst Ramoun Lazar says. Jefferies has penciled in US$700/ton for 2H. "Bluescope remains attractive on 8% FY27 free cash flow yield, supporting more than A$1 billion shareholder returns per annum," Jefferies adds. It retains a buy call and A$40.00/share price target. BlueScope ended Tuesday at A$32.83. (david.winning@wsj.com; @dwinningWSJ)
1652 ET - United Airlines' customers aren't getting scared by higher prices. The company says that third-quarter traffic was up 0.7% despite recording a 62% increase in fuel expense, which it is trying to recover through higher prices. The company averaged 538,000 daily customers in the quarter, recording six of its 10 highest-volume travel days. Those price hikes, with traffic staying steady, have allowed the company's revenue to surge. Premium revenue in the quarter was up 17% while revenue from basic economy increased 16%. (nicholas.miller@wsj.com)
1557 ET - Oil futures settle lower in a volatile session as the market remains jittery about possible escalation of conflict in the Middle East. WTI for November delivery expires at $101.79 a barrel, down 1.8% on the day, while the most-active December contract falls 0.7% to $97.82 a barrel. December Brent crude settles down 0.7% at $108.79 a barrel. The market will likely pay close attention to U.S. inventory data due Wednesday following the previous week's 8.6 million barrel crude stock draw when production was affected by Hurricane Isaias. Analysts in a WSJ survey expect a 300,000 barrel decline in crude inventories for last week, while gasoline stocks are seen unchanged and diesel stocks down 1.3 million barrels.(anthony.harrup@wsj.com)
1523 ET - U.S. natural gas futures settle lower, testing $3 support on a mild weather outlook. The market "appears almost entirely focused on mild temperature forecasts that are now stretching into next month per the reliable 6-14 day views," Ritterbusch & Associates says in a note. Not much weather premium seems to be embedded in the December and forward gas contracts, and with the storage surplus small enough that it could be erased by a colder than normal November, "we can envision a sharp upside price reversal on the first sniff of renewed below-normal temps," the firm adds. Nymex natural gas for November delivery settles down 3.1% at $2.9630/mmBtu.(anthony.harrup@wsj.com)
1359 ET - Gold futures settle lower for a second straight session as high oil prices continue to fuel inflation risks and interest-rate expectations. The bearish trend may have lost momentum, "but there is no compelling evidence that the metal has bottomed out yet," Fawad Razaqzada of Forex.com says in a note. "Renewed inflation concerns from both hard and soft data, as well as rising oil prices, have raised concerns that central banks will have to tighten their policies further in the coming months," he says. Central bank gold purchases provide some support, cushioning downside risks, but may not be enough to prevent at least a temporary break below $4,000, he adds. Front month gold slips 0.4% in New York to $4,122.40 a troy ounce. Silver gains 1.3% to $57.706 a troy ounce. (anthony.harrup@wsj.com)
1126 ET - Investors should wait until the U.S. midterm elections are over to judge whether the artificial-intelligence trade is weakening, says James Thorne, chief market strategist at Wellington-Altus. "We just got to get to the other side of the midterms," Thorne says. Traders are betting that higher energy prices are here to stay, and that the related run-up in borrowing costs will damage AI companies in the long run, Thorne says. However, a deal between the U.S. and Iran to reopen the Strait of Hormuz and ease energy prices is more likely after the midterm elections, Thorne says. (josephmichael.stonor@wsj.com)
0947 ET - U.S. natural gas futures are lower for a third session as national production rises along with increasing LNG feedgas flows. Record Gulf Coast LNG demand and pipeline constraints helped lift Henry Hub physical prices to a 3-month high $3.32/mmBtu yesterday, "bucking weakness in Nymex futures," Eli Rubin of EBW Analytics says in a note. He sees likely support for the November contract around the $3/mmBtu level. The contract is off 2% at $2.996/mmBtu. (anthony.harrup@wsj.com)
0932 ET - Oil futures gain in early U.S. trading amid persistent risk of Middle East supply disruptions. "In the near total absence of diplomacy and the emergence of further escalation factors, the risks of supply disruption could remain the main obsession, overriding optimism that might stem from any temporary measures aimed at lowering prices," Samer Hasn of XS.com says in a note. Risk of escalation, either from Iran or the U.S. in coming days and weeks could put regional energy infrastructure at risk, while the conflict between Saudi Arabia and Houthis "does not appear to be moving toward de-escalation," he adds. Most-active WTI is up 1.1% at $99.65 a barrel and Brent is up 0.7% at $110.35 a barrel.
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