The latest Market Talks covering Financial Services. Exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0818 GMT - Bank of China's earnings are likely to be lifted by a stronger overseas interest rate outlook, say DBS Group Research analysts in a note. The lender's overseas segment net-interest margin is likely to see fewer headwinds, as DBS doesn't expect the Fed to cut rates in 2026 with the current inflation environment. Hong Kong's benchmark interest rate is likely to normalize from extreme lows recorded last year in 2Q-3Q, they add. Bank of China has also locked in some foreign-currency bonds when interest rates were high, they note. DBS raises its 2026-2027 earnings estimates for Bank of China by 5%-8%. DBS lifts its target price to HK$5.80 from HK$5.30 and reiterates its buy rating. Shares last closed 1.1% higher at HK$5.31. (megan.cheah@wsj.com)

0816 GMT - The RBI's rate decision came across as a neutral hold, even though its CPI inflation forecast was revised up and GDP growth revised down further than expected, says Nomura's Sonal Varma. The policy statement suggests RBI will focus on second-round inflation effects, rather than headline prints, which are expected to rise closer to 6% in 4Q, she says. Based on the statement so far, there is no signal that the RBI is looking to raise rates, even in August. "Today's hold reinforces that the RBI is an orthodox inflation-targeting central bank," Varma says. Still, while inflation will rise going forward, the negative growth impact from the energy shock is also starting to materialize, so the RBI will need to focus on both growth and inflation.(fabiana.negrinochoa@wsj.com)

0514 GMT - The direction of both eurozone government bond yield spreads and curves remains dependent on the outcomes of Middle East negotiations, Societe Generale's rates strategists say. A reopening of the Strait of Hormuz would likely lead to a steepening of sovereign curves, whereas a renewed escalation could trigger more flattening, they say. "On the margin, we like tactical five- to 10-year steepeners in Bunds," the strategists say. Alternatively, they prefer positioning in the 10-30-year or five- to -30-year segments. "They have shown consistent and predictable behavior in both selloffs and rallies." (emese.bartha@wsj.com)

0156 GMT - Morgan Stanley analysts lower valuations across their Australian bank coverage by an average of 6% on expectations that changes to tax concessions will end what they call the property market's 30-year super-cycle. They say the changes will fundamentally alter the outlook for residential mortgage growth. They now forecast investor loan balances to remain flat in fiscal 2027. This is similar to 2019, when mortgage rates were falling, lending standards were tighter, and there was discussion that tax concessions could be about to change, they say in a note. ANZ is the only Australian bank rated overweight by MS and remains its sector pick. MS has an underweight rating on Westpac, NAB and Commonwealth Bank. (stuart.condie@wsj.com)

1338 GMT - Commerzbank's CEO Bettina Orlopp says the German bank doesn't see a threat from global rivals like JPMorgan Chase entering its home market. "At the moment, what they're doing is just marketing spend to become a little bit more popular," Orlopp says at a Goldman Sachs event in Zurich. Chase, Spain's BBVA, the Netherlands' ING and upstart players such as N26 are all targeting the same group of German depositors, she says. Commerzbank shares rise 1.1%. (adria.calatayud@wsj.com)

1320 GMT - Hong Kong-based insurers won't be meaningfully impacted by new rules impacting mainland Chinese investors' use of Hong Kong bank accounts, Jefferies' Philip Kett writes in a note. A report in the South China Morning Post said Bank of East Asia's Shanghai branch put a pause on new accounts in response to the rules, which demand mainland investors prove all funds in Hong Kong accounts originate outside of mainland China. Though the new rules will likely create more friction for financial institutions in the region, they aren't aimed at causing significant disruption to the system, Kett says. "There will be almost no impact on the life insurance industry." Prudential shares slide 7.2%, while HSBC and Standard Chartered fall 3.6% and 5%, respectively.(josephmichael.stonor@wsj.com)

1256 GMT - Supply of new euro-denominated covered bonds is expected to be high in June given upcoming repayments, LBBW's Markus Herrmann says in a note. Covered bonds are debt securities issued by banks and the bonds are backed by a pool of assets such as mortgages or public-sector loans. Banks supplied 17 billion euros ($19.7 billion) in new euro covered bonds in May, almost 2 billion euros higher than in April, he says. "We expect repayments of just under 10 billion euros for the overall market in June, so net issuances will remain positive," Herrmann says. (miriam.mukuru@wsj.com)

1024 GMT - Bank of Japan Gov. Kazuo Ueda's hawkish speech on Wednesday leads Goldman Sachs to bring forward its rate-hike expectation to June from July. "If the BOJ was not planning to raise the policy rate in June, we believe Governor Ueda would have sent a message to temper market expectations," economist Akira Otani writes in a note. "However, the speech appeared, if anything, more hawkish in tone." Goldman Sachs continues to expect rate increases to take place roughly every six months, with the next move likely to be in January. It also maintains its view of a 1.5% terminal rate, expecting the policy rate to reach that level in July 2027. (farah.elias@wsj.com)

0920 GMT - Ether continues to struggle after dropping to a one-year low overnight, underperforming bitcoin. "Digital assets remained under pressure as investors reduced risk exposure amid rising geopolitical tensions, persistent exchange-traded fund outflows and a stronger focus on macroeconomic risks," Saxo Bank analysts say in a note. Further weighing on sentiment are building bets that the Federal Reserve could raise interest rates this year following recent resilient U.S. economic data. Within crypto markets, investors favor the "relative safety" of bitcoin, the Saxo analysts say. Ether is last down 0.6% at $1,767 after falling as low as $1,1717 overnight, LSEG data show. Bitcoin falls 2.2% to $62,483 after reaching a four-month low of $61,344 overnight. (renae.dyer@wsj.com)

0916 GMT - India's central bank is likely to keep its policy repo rate at 5.25% on Friday, according to nine out of 11 economists polled by The Wall Street Journal. Two economists forecast the Reserve Bank of India will raise its repo rate by 25 bps to 5.50%. A hike could now be warranted as rupee depreciation pressures are persistent, while rising inflation could breach the RBI's 6% tolerance band later this year and remain sticky, says ANZ economist Dhiraj Nim. However, Citi research analysts say the RBI has signaled its willingness to wait until second-round inflation effects are apparent, and interest rate defense of the currency would be a last resort. "While [the] case for hikes are building up, we do not see room for a large hike needed to stabilize the rupee for now," BofA economists say. (kimberley.kao@wsj.com)

0820 GMT - Premier Miton's half-year results could prove to be a low point for the group, Cavendish analyst Rahim Karim says in a research note. The U.K. active asset manager has taken steps to reduce its cost base and has shown initial indications that improved investment performance is stemming the rate of outflows, the analyst says. Should the latest results be the low point of the group, "we believe that the current valuation fails to reflect the quality and diversification of the platform built in recent years," he says. Cavendish reiterates its buy recommendation on the stock and sees significant upside to the current share price, especially if the long-awaited recovery in active management occurs, Karim adds. Shares trade 6.7% lower at 35 pence. (nina.kienle@wsj.com)

(END) Dow Jones Newswires

June 05, 2026 04:20 ET (08:20 GMT)

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