The latest Market Talks covering the Auto and Transport sector. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0347 GMT - Elevated valuations of South Korean shipbuilding stocks could correct in 2H, Nomura's Eon Hwang says. Expectations for more defense contract wins and higher freight rates amid disruptions in the Suez Canal and Strait of Hormuz may support valuations in 1H, but falling new ship prices and easing Middle East tensions turn Nomura cautious on 2H, the analyst writes in a note. Nomura downgrades its ratings on HD Hyundai Heavy Industries to reduce from neutral, and slashes target price by 33% to 350,000 won. Its intermediate holding company HD Korea Shipbuilding & Offshore Engineering is also downgraded to neutral from buy, with its target price cut by 33% to 410,000 won. HD Hyundai Heavy is down 0.7% at 563,000 won, and HD Korea Shipbuilding is 1.6% lower at 407,000 won. (kwanwoo.jun@wsj.com)
2223 GMT - FedEx is expecting the net fuel impact from the conflict in Iran to be "relatively muted" in its main Express business during the current fourth quarter, Chief Executive Raj Subramaniam tells analysts. FedEx considers fuel costs in its pricing strategy. "We update our fuel surcharges weekly based on the current fuel price," he says. Fuel surcharges are indexed to the fuel prices published by the Energy Department, which allows FedEx to protect profitability during periods of volatility, he adds. The shipping company also reduced jet and vehicle fuel usage internationally in the third quarter to address global trade policy changes, Subramaniam says. Shares gain 8.7% rising to $387.10 after hours. (katherine.hamilton@wsj.com)
2209 GMT - Australian transport stocks are likely to trade on a near-term discount because of concerns around diesel availability, Ord Minnett says. It notes some 2.7 billion liters of diesel are consumed in the country each month. "An arbitrary 1% increase in the market risk premium due to fuel supply issues would (all else equal) reduce discounted cash flow valuations by 11.2% for Qube, 11.4% for Freightways, 15.2% for Mainfreight and 15.2% for Lindsay Australia," analyst Ian Munro says. Australia's supply of diesel is heavily concentrated in Asia. South Korea, Singapore, Malaysia, Taiwan, and Brunei account for nearly 80% of imported diesel. "We note that these countries are heavy refining countries, with a heavy exposure to the Middle East for their crude supplies," Ord Minnett says. (david.winning@wsj.com; @dwinningWSJ)
2147 GMT - Australian consumers are buying more China-made cars and Eagers Automotive is well-placed to benefit from this trend, says Jefferies. Chinese cars now account for 20% of new vehicle sales in Australia, up from 10% in 2024. Analyst John Campbell says Eagers is less reliant than other dealers on selling cars made in Europe and North America, which he expects will continue to lose market share. "We also believe that Eagers being (well) overindexed to BYD and to a less extent Chery is extremely positive," Jefferies says. It retains a buy call and A$29.50/share price target on Eagers, which ended Thursday at A$20.09. (david.winning@wsj.com; @dwinningWSJ)
2051 GMT - FedEx shipped more packages and squeezed more revenue from each shipment in the third quarter. The Memphis, Tenn., company shipped an average of 18.5 million packages a day, a 3% increase from the year before. The average revenue per package increased 6%. Total package revenue jumped 10% to $19.4 billion, thanks in part to a 10% jump in U.S. sales. The strong shipping numbers come as FedEx is spinning off its Freight business and executing a turnaround plan to cut costs. Shares gain 8.5% after hours. (katherine.hamilton@wsj.com)
1700 GMT - Tesla's stock price doesn't really depend on is auto deliveries anymore, but on the narrative around the company's AI ventures like its robotaxi and Optimus businesses, UBS analysts say in a note. There have also been more questions on Tesla's Terafab project and solar business lately, the analysts say. "The amount of investor conversations we have about the traditional auto business and business fundamentals is very low," the analysts say. Investors have been saying recently that Robotaxi and Optimus updates are slower and more muted than expected, they add. Still, while sentiment will continue to drive the stock, Tesla's auto business is what primarily helps fund its cash flow and, in turn, its investments for growth, the analysts say. (kelly.cloonan@wsj.com)
1040 GMT - European airlines and travel companies slide as conflict in the Middle East escalates. Airlines extend sharp falls this month as rising oil prices raise jet fuel costs, with Hungary's Wizz Air down 5.5% and Air France-KLM dropping 5.05%. Germany's Lufthansa falls 4.6%, while British Airways owner IAG declines 3.6%. More expensive fuel will translate to a median 11% cut to airlines' earnings forecasts over the next three years, RBC Capital Markets analyst Ruairi Cullinane writes. Wizz Air is more vulnerable than peers because of its already low margins, the analyst adds. A basket of European travel and leisure stocks falls 3.3%. (josephmichael.stonor@wsj.com)
1022 GMT - European defense stocks fall as investors seek to lock in their gains in the wake of the damage to Iranian gas fields and Qatari LNG facilities, and the U.S. threat to step up its attacks if Qatar faces further attacks from Iran, AJ Bell Investment Director Russ Mould says. Renk Group falls 5.2%, Rolls-Royce drops 3.9%, Hensoldt loses 3.6%, Babcock International Group is down 3.2%, and Saab falls 2.3%. Leonardo, CSG and Safran all lose 2%. Kongsberg and Dassault Aviation both drop 1.6%, while Thales loses 1.4%. BAE Systems and Rheinmetall suffer softer blows; both fall 0.8%. "Defense stocks are not proving immune as there are big profits to be taken there," Mould says. "Someone, somewhere is locking in what they have, in assets or securities where liquidity means they can do so." (cristina.gallardo@wsj.com)
0911 GMT - Shares in Air Astana lose ground after cofounder BAE Systems sold off its remaining stake in the Kazakh airline at a discount. The U.K. aerospace-and-defense group on Wednesday listed for sale its remaining roughly 6.9% stake in Air Astana at a price of $5.10 per global depositary receipt, a discount to the previous day's closing price of $6.02. BAE Systems cofounded the airline alongside the Kazakh wealth fund at the start of the century, taking it public in 2024 before selling off its stake in a series of disposals. Shares in Air Astana lose 7% to $5.60. (joshua.kirby@wsj.com; @joshualeokirby)
0849 GMT - Xiaomi's shares rose sharply in Hong Kong as investors watch for the new SU7 launch event Thursday evening. Its shares closed 3.4% higher at 36.32 Hong Kong dollars, outperforming the Hang Seng Index's losses of 2.0%.The gains come as investors closely watch for the new SU7 sedan that Xiaomi is about to release Thursday night. The company's CEO said in a livestream in February that the new SU7 had rolled off the production line. Although China's auto sector has faced slowing demand in January and February, analysts are expecting a recovery in March with new model releases from multiple automakers.(jiahui.huang@wsj.com; @ivy_jiahuihuang)
(END) Dow Jones Newswires
March 20, 2026 04:20 ET (08:20 GMT)
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