DJ Global Energy Roundup: Market Talk
The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0800 ET - Shares in wind-turbine makers Siemens Gamesa Renewable Energy and Vestas Wind Systems rise after French President Emmanuel Macron announced an investment program centered on green energy worth billions of dollars. Mr. Macron put forward a EUR30 billion plan aimed to revitalize the country's energy, transport and technology sectors that would decarbonize much of its industry. Plans included a EUR500 million investment in onshore and offshore wind and solar power, business news channel BFM reported. The French leader added that he wanted France to become a global leader in green hydrogen and to have a low-carbon airplane by 2030. Siemens Gamesa and Vestas trade up 3.7% and 4.4% respectively. (edward.frankl@dowjones.com)
0722 ET - AZZ's infrastructure solution segment saw modest improvement in 2Q due to improving end-market conditions for both its industrial and electrical products and services, which were hurt by Covid-19 last year. Sales in the unit rose 0.6% to $86.9M. "We continue to explore a small number of specific opportunities related to Infrastructure Solutions, with increasing confidence that AZZ will be able to become predominately a focused metal coatings company," CEO Tom Ferguson says. By comparison, AZZ's metal coatings segment increased 11% to $129.6M over last year due to improving market conditions in solar, agriculture, bridge and highway and original-equipment manufacturing, the metal coatings and electrical solutions company says. AZZ's shares gained 15% year to date. (kimberly.chin@wsj.com; @mskimberlychin)
0457 ET December Brent, as shown on the 30-minute chart, entered a consolidation phase after hitting a high of $84.60 yesterday. Currently it is off a low of $83.13 seen this morning. In fact, it has returned to levels above both 20-period and 50-period moving averages. And the relative strength index has managed to stay above 50, indicating a lack of downward momentum for Brent. Unless the key support at $83.13 (the low seen this morning) is breached, Brent is expected to revisit $84.60 on the upside (the high of yesterday). A further advance will then lead Brent toward $85.10. December Brent is trading at $83.89 a barrel. [This piece contains the opinions of Trading Central and does not constitute personalized investment advice or form part of any invitation or inducement to buy or sell any security. The author has been prohibited by Trading Central from purchasing or otherwise directly or indirectly acquiring any direct or indirect beneficial ownership of any instruments or markets for which Trading Central or its affiliates issues recommendations. To read more, visit bit.ly/1MehCU9.] (analysts-europe@tradingcentral.com)
0405 ET - The FTSE 100 drops 0.7% to 7095 points, tracking falls in Asia and U.S. stocks, as worries about an energy-driven rise in inflation dents market sentiment. Miners including Anglo American and Rio Tinto are among the biggest fallers after rising strongly on Monday. Financial stocks such as Prudential, Hargreaves Lansdown and M&G also fall. Meanwhile, U.K. jobs data on Tuesday showed a 207,000 increase in the number of people on payrolls in September while the unemployment rate dropped to 4.5% in the three months to August from 4.6% in the May-July period. The data "won't sow any seeds of doubt" among investors who see a strong likelihood of a U.K. interest rate rise this year, ING economist James Smith says. (renae.dyer@wsj.com)
0404 ET - Brent crude oil is up 0.1% at $ 83.77 a barrel and WTI futures are flat at $80.52 a barrel--after U.S. crude futures closed Monday at their highest since 2014--with energy markets broadly calmer Tuesday. European benchmark gas prices are up 1.2% at EUR86.22 per megawatt hour, with gas's climb having slowed to a crawl since Russian officials hinted at higher supply in November. UBS's Giovanni Staunovo says he expects higher crude demand in the power sector, because of the continuing gas-supply crunch, and increased jet-fuel demand to drive oil demand over the next 12 months. That's why he has raised his Brent and WTI forecasts by $5 to, respectively, $80 a barrel and $77 a barrel over the coming year. (david.hodari@wsj.com ; @davidhodari)
0318 ET - High crude prices are set to benefit net oil exporter Malaysia, CGS-CIMB says. "A sizable oil and gas trade surplus places Malaysia in a more advantageous position relative to other Asean peers in a rising oil price environment," the brokerage says. It estimates that every $10/bbl rise in oil prices will improve Malaysia's current account position by up to 0.4% of GDP, assuming LNG prices--which Malaysia also exports--move in tandem with oil. On the other hand, net oil importers Indonesia, Singapore and Thailand may incur higher energy import costs, CGS-CIMB says. (yongchang.chin@wsj.com)
0247 ET - Container freight rates could soon peak, with Jefferies noting in its own checks some anecdotal signs of rate discounting among ship charterers. This shouldn't hurt Cosco Shipping's 3Q net profit, which the company guided would reach CNY30.5 billion, compared with just CNY2.7 billion a year ago, the U.S. bank says. However, Jefferies adds that some of the earnings upside from high freight rates could be offset by rising oil prices, which is resulting in higher fuel costs. Jefferies keeps a hold rating and HK$12.30 target price on Cosco Shipping's H-shares, which are 2.0% lower at HK$10.94. (yongchang.chin@wsj.com)
0244 ET - VS Industry appears to be a clear beneficiary of trade issues between the U.S. and China that have reshaped supply chains, says UOB Kay Hian. It says the company has secured five new customers related to the U.S.-China spat and associated diversions, with a potential revenue contribution exceeding MYR2.2 billion in FY 2022. UOB says key customers are making VS Industry their preferred partner in tandem with the electronics manufacturing services provider's expansion in Malaysia. UOB says the company is also in discussions with various new customers for trade-diversion related orders. UOB keeps its buy rating and MYR1.86 target price. Shares are 0.6% higher at MYR1.60. (chester.tay@wsj.com)
(END) Dow Jones Newswires
October 12, 2021 08:00 ET (12:00 GMT)
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