Global Equities Roundup: Market Talk

The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.

0825 GMT - China's computing constraints are unlikely to deter its leading AI models from developing in pace with its U.S. rivals, according to Capital Economics' Nguyen Hoang Nam in a research note. While China's efforts to expand computing infrastructure remain hindered by U.S. restrictions on advanced chips, techniques like distillation, which uses the outputs of a powerful AI system to train a smaller model, reduces their computing needs, the China economist says. That said, these restrictions on chips will "make it harder for China to pull ahead in the AI race and could hinder the diffusion of AI across the economy," CE says. (tracy.qu@wsj.com)

0823 GMT - Shares of European semiconductor companies are mixed Friday following a sharp selloff the day prior as investor jitters over artificial intelligence took center stage. In Asia, South Korea's SK Hynix closed 4.4% higher, while Samsung Electronics gained 0.5%. In Europe, shares of Dutch semiconductor-equipment maker ASML Holding and smaller rival ASM International are down 0.2% and 0.7%, respectively. French semiconductor-materials maker Soitec is up 3%. German chip maker Infineon Technologies stock gains 1.7%. STMicroelectronics shares are down 0.4%. Meanwhile, the E-mini Nasdaq 100 futures contract is up 0.2%, pointing to a positive opening for tech stocks in the U.S. (mauro.orru@wsj.com)

0757 GMT - European natural-gas prices climb to their highest since late 2022 as fears of renewed escalation between the U.S. and Iran threaten LNG supply ahead of winter. The benchmark Dutch TTF contract rises 3.8% to 93.43 euros a megawatt-hour, on track for a weekly gain of nearly 7%. According to analysts, EU gas storage levels seem to have peaked at only 75%. "The only hope is that the mild temperatures Europe has experienced so far this winter will continue," according to ANZ. "Most forecasts are pointing to unseasonably warm weather returning to northwest Europe next week. However, temperatures are expected to drop in November." (giulia.petroni@wsj.com)

0754 GMT - The Monetary Authority of Singapore is likely to leave its policy settings unchanged in the near term, after September's core inflation rate came in softer than expected, Barclays economist Brian Tan says in a note. Core CPI rose 2.0% in September, compared to Barclays' forecast of 2.3%. The MAS is expected to shrug off future better-than-expected GDP growth unless core inflation re-accelerates or there are more signs of price pressures from the artificial intelligence boom or the Middle East conflict. While the MAS doesn't have an explicit inflation target, it views average core inflation just below 2% as consistent with overall price stability.(amanda.lee@wsj.com)

0753 GMT - China is likely to be the key exception to Eastspring Investments' view that Asian central banks could tighten monetary policy over the next few quarters. China's deflationary pressures from declining property prices, and excess industrial capacity, could weigh on its inflation and growth, says the asset manager in a report. This could sustain pressure for further monetary policy easing in China over the next two quarters through its interest rates and subsidized credit facilities, Eastspring says. Meanwhile, higher-for-longer energy prices and currency weakness could spur central banks in India, Indonesia, Japan, Malaysia and Taiwan to tighten. Lower energy prices and renewed dollar weakness might allow regional monetary policy to stabilize, Eastspring adds, noting these could emerge around late 1Q-2Q next year. (megan.cheah@wsj.com)

0739 GMT - Contemporary Amperex Technology's low profitability in 3Q could be the new normalized margin level given more headwinds ahead, say Daiwa analysts in a note. The miss in 3Q results indicates CATL's weak cost pass-through capacity amid a weak new energy vehicle sales outlook, alongside more severe tax burdens next year, they add. The market is also concerned about the potential decoupling of NEV makers with self-developed technologies. Daiwa sees limited market sentiment support in the near term with CATL's management offering limited information regarding future strategy or solid cost pass-through measures. Daiwa downgrades CATL to hold from buy. The stock ended 7.8% higher at 237.60 yuan in Shenzhen.(jiahui.huang@wsj.com; @ivy_jiahuihuang)

0736 GMT - Volvo Car posted a large third-quarter miss on weakness in China and the U.S., Jefferies analysts write. Revenue missed consensus by 10% while EBIT missed by 3.6 billion Swedish kronor even when the 1.1 billion kronor U.S. emissions credit revaluation is excluded, the bank says. A 19% drop in wholesale volumes on year is the main surprise, analysts add. China revenue was down 50% on year as new Chinese alternatives "eliminate profitability for legacy" brands. The U.S. has been hit by tariffs and the removal of EV incentives, while Europe was a positive contributor to performance. In addition, the EX60 is taking longer to ramp up than planned. Shares fall 28% to 10.18 kronor. (dominic.chopping@wsj.com)

0734 GMT - Limited partners across the Gulf are increasingly looking down the market-cap spectrum for alpha in private markets funds, according to Asante Capital. Nearly all LPs in the region have loosened minimum fund size thresholds, Asante researchers write. A number of family offices are now willing to consider managers raising funds as small as $500 million. "Large caps are still in the portfolio--they won't go anywhere--but net new money is generally flowing to the mid-market," says Asante director Frank Glock, adding that one benefit of the mid-market is not having to worry about IPO volatility. (joseph.wilkins@wsj.com)

0734 GMT - European stock indexes are mixed in early trade, as higher oil prices weigh on the continent while earnings drive large individual moves. The continent-wide Stoxx 600 edges 0.1% lower, with defense, software and luxury sectors falling sharply. London's FTSE 100 falls 0.2% as industrials and miners slide, with Rolls-Royce down 2.4%. The German DAX drops 0.45% as autos drop--Mercedes-Benz Group is down 1.2%--while software giant SAP falls 1.7%. In Paris, the CAC 40 slides 0.5%, dragged by luxuries group Kering which falls 11% after its sales growth slowed. Italy's FTSE MIB falls 0.4% while the Spanish IBEX 35 trades flat. The Dutch AEX rises 0.2%. (josephmichael.stonor@wsj.com)

0729 GMT - Gold is headed for a weekly loss of more than 3.5% as elevated energy prices fueled concerns over inflation and interest-rate hikes. In early European trading, New York futures fall 0.8% to $4,026 a troy ounce. "A rising inflation backdrop along with selling pressure to cover losses in equity or bond market positions is a negative combination for gold in the short-term even as the Fed is looking assured to keep rates unchanged at next week's FOMC meeting," says Soojin Kim from MUFG. Bullion is seen as a hedge ​against inflation, though a higher ​interest-rate environment tends ⁠to diminish the nonyielding asset's appeal. According to the FedWatch tool, traders broadly expect the U.S. central bank to leave interest rates unchanged next week, but they see a nearly 80% probability of a hike in December. (giulia.petroni@wsj.com)

0726 GMT - Tencent's strategic partnership with APEC Summit is an important validation of its enterprise artificial intelligence, cloud and digital ecosystem capabilities, Citi analysts say in a research note. The analysts say that it provides a good opportunity for Tencent to showcase its generative AI and cloud stack on an important global stage. "This important deployment will significantly enhance Tencent's brand awareness to international representatives while driving broader foreign user familiarity and adoption across the WeChat Mini Program ecosystem and local merchant network," they note. Citi maintains its buy call on Tencent and deems the recent share-price weakness to be a good buying opportunity. Shares are last 1.1% higher at 386 Hong Kong dollars. (sherry.qin@wsj.com)

0700 GMT - Signify's tariff refund drove it to exceed adjusted earnings forecasts, analysts at JP Morgan say in a note. The Dutch lighting company reported adjusted earnings before interest, taxes, depreciation and amortization of 145 million euros, and beat JP Morgan's expectations by 34%, the analysts said. Tariff refunds were largely behind the beat, they say, adding 28 million euros to its result.