Global Equities Roundup: Market Talk

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

0702 GMT - Brent crude edge lower in early trading after settling above $100 a barrel, though prices remained on track for weekly gains of more than 12% as threats to Red Sea shipping stoked fears of further supply disruptions. The global oil benchmark falls 1.3% to $99.39 a barrel, while WTI futures slip 1.4% to $90.89 a barrel. "The key question is at what price level pressure begins to build on the Trump administration to return to the negotiating table," analysts at ING say. Based on previous price spikes during the early stages of the conflict, they say pressure to de-escalate would rise significantly if Brent approaches $120 a barrel. For Iran, the more pressing issue is not the level of oil prices, but how long the country can withstand a sharp drop in oil revenue under the U.S. blockade. (giulia.petroni@wsj.com)

0658 GMT - SAP's miss on earnings before interest and taxes and on-year margin compression are unpleasant surprises, J.P. Morgan analysts say in a research note. The German business-software company said its second-quarter margin was abnormal due to cost pressures and cost containment measures that are now in place, J.P Morgan says. However, "full-year EBIT guidance does require second-half EBIT growth to re-accelerate from the second-quarter level," the analysts say. (nina.kienle@wsj.com)

0652 GMT - HSBC Holdings' proposed sale of its Singapore insurance unit to Germany's Allianz for $2.1 billion looks like a good deal for the London-based banking group, J.P. Morgan analysts write in a research note. The business contributed only 0.2% of HSBC's pretax profit last year and faced potential profitability pressure from competition, the analysts say. A disposal gain of $1.8 billion upon completion is expected to translate into a 4% boost to HSBC's 2027 pretax profit and lift its CET1 ratio by 15 basis points, according to JPM. This could point to room for higher buybacks next year, the analysts say. Moreover, the two parties will enter into a 15-year bancassurance agreement, which should limit disruption to HSBC's Singapore banking services, they add. Hong Kong-listed shares in HSBC fall 1.1%. (adria.calatayud@wsj.com)

0651 GMT - Volkswagen reiterated its 4%-5.5% group operating profit guidance corridor for 2026, which is positive considering the current gloom surrounding the sector, even if revenue guidance was reduced, Bernstein analysts write. The 2Q operating margin of 4.2% is below the 4.7% forecast in a company-compiled consensus but in line with Bernstein's, while cash flow was ahead of consensus but again in line with Bernstein. The bank says Volkswagen management is trying to walk the tightrope of reassuring investors while at the same time telling its workforce that the house is on fire and that painful cuts to capacity, requiring significant plant closures, are unavoidable. "That is an almost impossible needle to thread and explains our market perform rating." Bernstein has a 100 euros price target on the stock. VW shares closed at 72 euros. (dominic.chopping@wsj.com)

0638 GMT - Banco de Sabadell's second-quarter results look messy, with several exceptional items affecting its earnings, Keefe, Bruyette & Woods's Hugo Cruz and Ben Maher say in a research note. A new buyback of 331 million euros launched by the Spanish lender seems small, they add. The final effect of the sale of TSB to Banco Santander, a loss on the sale of an equity stake and another redundancy package in Spain all influenced Sabadell's results, the analysts say. The bank improved its cost expectations and launched a new buyback, but the program accounts for just 2.1% of its share capital, they add. "[Sabadell's] share price has outperformed the [Euro Stoxx Banks index] by 2% over the last month, but we do not think these results change the equity story," KBW says. (adria.calatayud@wsj.com)

0636 GMT - S Hotels & Resorts faces an earnings hit from its hotels in the Maldives, CGS International's Thanapol Jiratanakij says in a research report. Tourist arrivals in the Maldives fell markedly in 2Q owing to flight disruptions from Europe and the Middle East due to the U.S.-Iran conflict. Also, higher oil prices have boosted the Thai hospitality management company's operating expenditures, given the Maldives' heavy reliance on diesel-fired electricity generation. The brokerage cuts its 2026-2028 core EPS forecasts for the company by 10.9%-38.1%. It lowers the stock's target price to 2.50 baht from 3.00 baht, with an unchanged add rating. Shares are unchanged at 1.62 baht. (ronnie.harui@wsj.com)

0619 GMT - Summarecon Agung's growth is likely underpinned by strong demand in its flagship Serpong project in Indonesia, say Maybank Sekuritas Indonesia analysts in a report. The real-estate developer looks well-positioned with resilient mid- to upper-segment demand supporting its Serpong township, the analysts say. Its Bandung township is also showing better traction, with pre-sales growing sharply, driven by robust demand in 'Ivora' and 'Genova' clusters. The brokerage maintains the stock's buy rating, but lowers the target price to 470.00 rupiah from 520.00 rupiah to reflect a higher equity risk premium amid weak sector sentiment. Shares are 1.8% lower at 332.00 rupiah. (ronnie.harui@wsj.com)

0618 GMT - Rising interest rates are likely now a bigger concern for Mapletree Industrial Trust, Jefferies analysts say in a note. Although 1Q borrowing costs were flattish on quarter at 3.2%, the real-estate investment trust's management raised its guidance for borrowing costs to 3.5% in FY 2027 and 3.7% in FY 2028, the analysts note. They cite a more hawkish interest-rate environment and roughly S$600 million in interest-rate hedges dropping off in FY 2027. Meanwhile, the REIT's divestments will be key to watch, as it continues to target S$500 million to S$600 million in U.S. asset sales, the analysts say. Jefferies retains its hold rating and S$1.90 target price. Units rise 0.5% to S$1.94. (megan.cheah@wsj.com)

0528 GMT - India HSBC Flash PMI data showed the weakest expansions in private sector sales and output since early 2022, according to its latest survey. HSBC Flash India PMI Composite Output fell to 54.3 in July from 57.1 in June while remaining in expansionary territory. Growth was capped by an increasingly challenging market, competitive pressures, order cancellations, reduced client enquiries and shortages of key raw materials, the survey showed. Inflationary pressures intensified, but new export orders rose at a stronger pace. "Renewed tensions in the Middle East have once again resulted in firms building buffers to manage the uncertainties around the longevity of the supply-side shock," says Pranjul Bhandari, chief India economist at HSBC. (kimberley.kao@wsj.com)

0503 GMT - South Korea's trade surplus could top $30 billion for a second straight month in July after exceeding the threshold for the first time a month earlier, Citigroup's Jin-Wook Kim says. The economist expects the surplus to reach $31.90 billion, following a revised $36.10 billion in June. Export growth could moderate but still remain strong in July, with overseas shipments rising 65.7% from a year earlier in July, compared with a revised 70.7% increase in June, Kim reckons. Citi said earlier this week brisk semiconductor exports likely continued to drive the overall export growth, citing a nearly triple year-on-year jump in chip exports for the first 20 days of July. (kwanwoo.jun@wsj.com)

(END) Dow Jones Newswires

July 24, 2026 03:06 ET (07:06 GMT)