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.
0635 GMT - ZTO Express should be able to consolidate its market leadership, according to DBS Group Research in a commentary. The Chinese logistics company expects its parcel volume to grow 10%-13% in 2026, thanks to its extensive network, outpacing the industry's estimated 8.0% growth, the analysts say. The company's cost discipline and focus on retail expansion will likely help it face any near-term challenges, they add. ZTO is also increasing its cash dividends and share buybacks, which the analysts say show its confidence in its long-term prospects. DBS retains its buy rating and is reviewing its HK$181.00 target price for ZTO's Hong Kong shares and its US$23.20 target price for its ADRs. Shares fall 0.8% to HK$194.90; ADRs last closed at US$25.51. (megan.cheah@wsj.com)
0559 GMT - The Bank of Japan resuming rate increases later would be key to staying the course on monetary-policy normalization, says State Street Investment Management's Krishna Bhimavarapu in a commentary. The central bank held its policy settings steady amid geopolitical uncertainty, and it might have to step in and calm the yen and bond market, he adds. However, the BOJ's dovish pivot is "very important" as the Middle East conflict enters a phase in which the risk of demand destruction is increasingly feared and potentially priced in, the Asia-Pacific economist adds. The dollar is 0.1% lower at 159.73 yen, LSEG data show. (megan.cheah@wsj.com)
0543 GMT - India's Sensex is on track for its largest single-day loss since April 2025 amid renewed risk-off sentiment. Escalating Middle East tensions, surging Brent crude prices and the Fed's hawkish stance, indicating fewer rate cuts, are dragging down equities, says Devarsh Vakil at HDFC Securities. The Iran war has particularly rattled Indian markets, as the country is a major energy importer with limited strategic reserves, leaving it vulnerable to energy price swings. The rupee has hit record lows against the dollar, as aggressive importer demand triggered a sharp selloff, Vakil adds. Indian banks are among the biggest decliners in late-morning trading, with HDFC Bank down 4.5% after its chairman stepped down. Bajaj Finance falls 3.5% and Axis Bank loses 2.7%. Energy stocks are also lower, with Hindustan Petroleum and Bharat Petroleum down 4.6% and 3.0%, respectively. Petronet LNG sheds 3.8%. The benchmark Sensex falls 2.1% to 75064.21. (jason.chau@wsj.com)
0227 GMT - NIO's 1Q vehicle margin is likely to be helped by an improving product mix, which is expected to offset rising costs and lower sales, Deutsche Bank analyst Bin Wang writes in a note. NIO says its ES8 SUV generated gross margin close to 25% in 4Q, with approximately 40,000 units sold. NIO anticipates on-quarter increase in 1Q ES8 SUV sales volume, driven by a sufficient order backlog, he says. This suggests a significant positive shift in the product mix. While NIO is experiencing some increases in sourcing costs, the impact is expected to be minimal in 1Q as NIO's purchasing costs are based on long-term contracts. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
0219 GMT - Bernstein remains cautious on the monetization potential of advanced autonomous driving technology for Chinese automakers. Uncertainties persist around how Chinese automakers can introduce the advanced features overseas to create differentiated global products, Bernstein analysts write in a note. Leading Chinese EV players such as XPeng and Li Auto are emerging as front-runners in adopting Vision Language Action tech. XPeng has already launched its VLA2.0, which demonstrates human like decision-making, using in-house chips, they say. Advanced Driver Assistance System is becoming a key differentiator and an increasingly essential feature for premium EVs, they add.(jiahui.huang@wsj.com; @ivy_jiahuihuang)
2249 GMT - The net impact of higher fuel prices on Qantas Airways's FY 2026 pretax earnings is some A$174 million, Macquarie estimates. Elevated crack spreads since the Iran conflict began are putting a dent in earnings from forward sold air tickets. Macquarie says it's too early to assess the impact on FY 2027 profit. Still, it's likely that higher oil prices and crack spreads continue into 1H. Qantas could raise ticket prices to offset higher fuel costs. "We anticipate Qantas will reduce costs with some flight consolidation, particularly for the U.S. where A380s are flying with lower load factors," Macquarie says. Its price target falls 3.3% to A$11.60/share. Qantas ended Wednesday at A$8.73. (david.winning@wsj.com; @dwinningWSJ)
2235 GMT - Macquarie thinks fading fear about Iran and oil prices, combined with generally strong global data, should support improving equity sentiment. It says peak panic related to oil prices could have been on March 9. "For exposure to a relief rally, we favor stocks that fell more than 10% since Operation Fury began, but had EPS upgrades coming out of results," Macquarie says. It promotes Sandfire Resources, ALS, James Hardie, Hub24, Downer EDI, Brambles, Qantas and Charter Hall as ideas. (david.winning@wsj.com; @dwinningWSJ)
2014 GMT - Airlines' ability to offset higher fuel costs will depend on how long prices remain elevated, UBS analysts say. The longer crude oil's spot price stays above $100 a barrel and jet fuel is $4 or more per gallon, the more likely it is that overall inflation picks up, they say. This could dent consumer spending on travel, making it harder for airlines to increase fares, the analysts say. For airlines to pass on fuel prices and stay within guidance estimates, costs must moderate soon, the analysts say. "Every passing week at current levels increases the risk of consumers eventually pulling back," they say. (katherine.hamilton@wsj.com)
1946 GMT - Airlines' commentary about fuel price increases has been better than expected, UBS analysts say. The analysts think the positive commentary increases the likelihood of airlines achieving annual earnings in line with their outlooks. There have been two rounds of fare increases in the month of March as airlines look to pass on higher fuel costs, the analysts say. If current trends persist, the analysts assume fare hikes will offset the higher fuel bills if costs stay elevated for the rest of the year. (katherine.hamilton@wsj.com)
1620 GMT - CBOT grain futures are higher in midday trading, with corn and wheat being buoyed by strength in crude oil futures. Light crude futures are up 2.3%, while Brent crude is up 5% - which in turn is giving feedstock prices support. The White House says that the Jones Act will be temporarily paused for 60 days, which is designed to lower freight costs amid the high oil prices. "President Trump is hoping that it eases the inflationary pressures on imports," says Arlan Suderman of StoneX. That won't directly affect grain prices - but it could potentially increase demand for imports, which would extend to grains, says Suderman. CBOT corn is up 1.5%, soybeans are up 0.1%, and wheat is up 2.1%. (kirk.maltais@wsj.com)
1551 GMT - General Motors' fears that President Trump's tariffs would spell doom for its business model didn't play out, with the import taxes ultimately being manageable for the automaker, CFO Paul Jacobson says at the Bank of America Global Automotive Summit. "What we found is that the auto industry is really, really important to the administration," he says, adding that the administration landed on a "nice, sort of narrow path" to maintain competitiveness while supporting the industry. "Would we rather not pay $3 billion in tariffs? Probably," Jacobson says. "But at the end of the day, I think what we've seen, we can adapt to that." He adds that GM managed to offset more than 40% of tariff costs by reducing expenses and changing its manufacturing footprint. (elias.schisgall@wsj.com)
1525 GMT - General Motors has benefited from having vehicles at low price points, but its sales haven't been substantially affected even as consumers stress about affordability, CFO Paul Jacobson says at the Bank of America Global Automotive Summit. "We hear this drumbeat of affordability, I think it's pretty consistent with what we've been hearing for the last few years," Jacobson says. But this concern "certainly isn't affecting people's purchase decisions," he adds. He notes that GM sold more than 700,000 vehicles last year with a sticker price below $30,000. (elias.schisgall@wsj.com)
(END) Dow Jones Newswires
March 19, 2026 04:20 ET (08:20 GMT)
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