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

1839 ET - Australia's S&P/ASX 200 looks set to edge higher at the open after the U.S. agreed to hold off on implementing additional tariffs on the European Union, lifting hopes of a trade deal. ASX futures are up by almost 0.2% ahead of Tuesday's session, pointing to an opening rise that could support a third straight daily gain. With U.S. markets closed for a public holiday, any lead for Australian equities comes from Europe, where major indices rose. U.S. stock futures also gained. Traders in Australia are waiting on Wednesday's release of April CPI data, which could provide hints at the likely path for local interest rates. (stuart.condie@wsj.com)

0803 ET - ATS managed to get some money from a settlement with a large EV customer, but only about half what it was due. ATS will receive about $145.8 million from the customer, which represents only about 57% of the $340 million balance despite services rendered, TD Cowen analyst Cherilyn Radbourne notes. However, Radbourne says that despite this, there are positives, including a substantial cash inflow at a time when the EV sector faces tariff and macroeconomic uncertainty. "It's disappointing to see ATS receive less than full payment despite satisfying the contracts, however we see this as a positive outcome," she says. (adriano.marchese@wsj.com)

0655 ET - From a historical perspective, there's nothing sinister about recent falls in the U.S. dollar, says Eurizon SLJ Capital's Stephen Li Jen in a note. "Despite global upheavals, the U.S. dollar remains the dominant reserve currency," the CEO says. The dollar has traded between around $0.83 and $1.60 against the euro in the past 25 years and throughout this period there was little talk about the dollar losing its hegemonic status as a reserve or international currency, he says. However, the dollar's share in the world's reserve holdings should drift lower, albeit retaining its number-one spot, he says. Eurizon SLJ Capital sees fair value for the euro against the dollar between $1.20 and $1.25. The euro is last up 0.1% at $1.1380. (emese.bartha@wsj.com)

0550 ET - The key to the success of the tie-up between Helvetia and Baloise is cost reduction though revenue, and capital synergies are expected, Vontobel says after the shareholders of both Swiss insurers voted in favor of the merger. "Execution is paramount," analyst Simon Foessmeier writes in a research note. This also means that the success of the combination depends less on the current volatile market environment, which is positive given the reigning uncertainty, he adds. When the deal closes in the fourth quarter, Helvetia will issue new shares and Baloise's will be delisted. Shares in Helvetia, which has a market capitalization of 10 billion Swiss francs, rise 0.9% to 192.5 francs. Baloise's share price edges up 0.5% to 193.2 francs, resulting in a 8.7 billion franc valuation. (elena.vardon@wsj.com)

0542 ET - Petronas Gas' valuation appears reasonable, supported by a stable earnings outlook and a solid balance sheet, CIMB Securities analyst Foong Choong Chen says in a note. The current share price should also be supported by decent dividend yields of 4.2% per annum for 2025-2026, he says. The company estimates about MYR170 million in repair and restoration costs from the gas pipeline fire in Selangor in April, with most of it to be capitalized, he notes, adding that insurance claims are expected to partially offset the cost. The total earnings impact would be MYR60 million for 2025, he adds. CIMB maintains a hold rating on Petronas Gas and a target price of MYR19.08. Shares were last at MYR18.22. (yingxian.wong@wsj.com)

0527 ET - The planned merger of Hygon Information and Dawning Information Industry could combine resources and facilitate each other's business, Citi analysts say in a note. Chinese chip maker Hygon on Sunday night said it plans to acquire smaller peer Dawning by issuing new A shares to all Dawning shareholders. Dawning, which has been on the U.S. Entity List since 2019, has seen its server shipments plunge to 8,600 units in 2024 from 303,000 units at its 2018 peak due to hardware constraints, the analysts say, citing IDC data. Dawning has shifted its focus to CPU and GPU board design and production from server manufacturing, they note. Thus, the restructuring could help Dawning enhance cooperation with CPU and GPU maker Hygon, and enable broader collaboration with server manufacturers, they add. (sherry.qin@wsj.com)

0451 ET - Lenovo Group's PC margin will likely be pressured in the near term by tariffs, CGS International analyst Ray Kwok says in a research note. CGS International expects Lenovo's PC pretax income margin to be roughly flat at 7.2% in fiscal 2026. The PC maker could suffer from incremental U.S. tariff costs by accelerating its production relocation to Vietnam from China and raising its PC pricing in the U.S. to reflect the tariff, it adds. Its PC revenue could rise 3% in fiscal 2026 due to a commercial demand recovery and higher average selling prices on better product mix, the analyst says. CGS International maintains its add call on Lenovo but lowers the target price to HK$13.80 from HK$15.00. Shares last ended at HK$9.29. (sherry.qin@wsj.com)

0433 ET - EasyJet might close its share-price underperformance compared with the rest of the sector in the coming months thanks to better-than-expected ticket pricing, JPMorgan analysts write. The analysts say investors have reasons to feel positive about pricing, which might lead to consensus upgrades. This is backed by Easter falling into its fiscal 3Q and bookings being ahead of their prior-year level, they say. It is also supported by easyJet's moderated summer capacity growth and solid demand for short-haul flights, along with limited capacity growth from low-cost Ryanair and national carriers, the analysts add. EasyJet shares closed Friday at 5.54 pounds, down 1.1% since the start of the year. Ryanair shares, by comparison, trade up 0.3% at 23.92 euros, up 25% over the year to date. (pierre.bertrand@wsj.com)

0428 ET - European auto stocks rose on Monday after U.S. President Trump pushed back a deadline on EU tariffs to July 9. Last week he threatened to implement a 50% tariff on EU goods from June 1 after saying talks on a trade deal were "going nowhere." The European auto sector counts the U.S. as a major market and is therefore highly exposed to any duties on vehicles and parts entering the U.S. Shares in Stellantis rose 2.4% while Mercedes-Benz gained 1.9% and Volkswagen added 1.4%. Trading volumes were light due to public holidays in the U.K. and U.S. Monday. (dominic.chopping@wsj.com)

0411 ET - A quiet day awaits in terms of economic data and events given the public holidays in the U.S. and U.K. on Monday, says DZ Bank Research analyst Stefan Grothaus in a note. Input might come from European Central Bank President Christine Lagarde and Bundesbank President Joachim Nagel, who are scheduled to participate in two different events in Berlin. News on tariffs enlivens markets, however, after U.S. President Trump said on Sunday he would delay plans for 50% tariffs on European Union imports until July 9 from the originally announced June 1. The pan-European Stoxx Europe 600 index gains 1% to 550,60, while the euro rises to a one-month high of $1.1421, according to FactSet. (emese.bartha@wsj.com)

0402 ET - H&M continues to face a challenging operating environment in 2025, AlphaValue analyst Jie Zhang writes. The Swedish fast-fashion retailer expects March sales grew by 1%, confirming the continuing slowdown in top-line momentum, just as any margin recovery remains fragile, Zhang says. Profitability continues to be weighed down by external cost pressures, a weaker gross margin, increased price reductions, and continued investment in the customer offering. These pressures are likely to persist into the second quarter, Zhang says. H&M insists that its long-term investment in bringing production closer to its main markets, as well as brand development, customer engagement and supply-chain flexibility are beginning to bear fruit. However, these improvements remain largely qualitative and unquantified, the analyst says. "The highly unpredictable consumer environment and unfavorable purchasing conditions globally are likely to further complicate the group's recovery trajectory." Shares rise 0.9%. (dominic.chopping@wsj.com)

0332 ET - Central Pattana remains a buy call on healthy growth and cheap valuation, Maybank Securities (Thailand)'s Wasu Mattanapotchanart says in a research report. The Thai company's key advantage over retailers is its ability to replace underperforming tenants and brands with new ones, enabling its shopping malls to adapt to changing customer preferences, the analyst says. Also, the company's stock is trading at an estimated 12x 2025 price-to-earnings and estimated 10x 2026 price-to-earnings, which is the lowest among listed retailers, the analyst adds. However, the brokerage lowers its target price for the stock to THB65.00 from THB70.00, reflecting a change in its valuation method. Shares are 1.05% lower at THB47.00.(ronnie.harui@wsj.com)

(END) Dow Jones Newswires

May 26, 2025 18:39 ET (22:39 GMT)

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