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

0721 GMT - Singapore's three major banking groups' financial performance is likely to soften, but remain solid over the next two years, Fitch Ratings analysts write in a note. Higher uncertainty from global trade tensions is likely to reduce trade velocity and credit demand, they say. This is highly relevant for the banks as their wholesale banking business models center on facilitating transnational trade and capital flows in the region, they add. The banks' aggregate loan growth is expected to hover around 4.0% annually over the next two years, compared with 5.2% in 2024, they say. However, they say the banks have dominant domestic franchises that offer reliable, low-cost funding and yield stable asset quality as well as consistent profitability.(amanda.lee@wsj.com)

0238 GMT - Malaysia's stock market is poised for portfolio rebalancing, after FTSE Russell announced that AMMB will replace Hong Leong Financial Group in the benchmark Kuala Lumpur Composite Index following its June semiannual review, say CIMB Securities analysts Ivy Ng Lee Fang and Lim Yue Jia in a note. The change, effective June 23, could trigger rebalancing activities by passive and index-tracking funds involving the affected constituents, they note. They expect AMMB to carry a higher KLCI weight of 2.7%, compared with Hong Leong's 0.7%. Historical trends suggest that newly added KLCI stocks often outperform. CIMB maintains its end-2025 KLCI target of 1560 and favors CelcomDigi, Public Bank and Tenaga Nasional. The KLCI is 0.1% lower at 1516.27. (yingxian.wong@wsj.com)

2023 GMT - Large, publicly traded private-equity fund managers such as Apollo, Ares, Blackstone, Carlyle and KKR invested a total of $75.4 billion during the 12-month period through March, 37.6% more than a year earlier, according to PitchBook. Blackstone alone invested $24.8 billion in the latest period, followed by KKR with $20.2 and Apollo, which deployed $15.2 billion, the private-market research provider says. The three firms have a lot of firepower left, having ended March with a combined $357.2 billion in unspent fund capital, or dry powder. "Amid a turbulent macroeconomic backdrop characterized by trade policy uncertainty and mounting volatility in public markets, [large firms] leaned into their contrarian instincts, seizing opportunities where others saw headwinds and risks," PitchBook says. (luis.garcia@wsj.com; @lhvgarcia)

1941 GMT - Destiny Tech100, one of the few ways investors can get exposure to Elon Musk's SpaceX, is taking a beating as the tech mogul trades barbs with President Trump. SpaceX makes up nearly half of the shares in the closed-end fund, according to an SEC filing. President Trump posted online Thursday that the easiest way for the U.S. to save money would be to terminate contracts with Musk. That post came after the SpaceX CEO critiqued Trump's megabill. SpaceX has billions of dollars worth of contracts with the federal government, primarily with the Pentagon and NASA. The federal government has also eyed deals with SpaceX's Starlink satellite service. Destiny shares slid 12%. (katherine.hamilton@wsj.com)

1658 GMT - London Stock Exchange Group's diversified business model is likely to deliver sustained growth, RBC Capital Markets analysts Ben Bathurst and Jude Neanor write in a note. This is supported by the company's recent investments and enhanced by bolt-on acquisitions, they say. Additionally, Tradeweb--the U.S.-listed electronic trading platform in which LSEG holds a majority stake--is showing strong volume growth on year and is expected to deliver another robust quarter, they add. Tradeweb makes up around 15% of the stock-exchange and financial-information company ex-recoveries revenue, on a fully consolidated basis. Shares closed at 112.90 pounds. (najat.kantouar@wsj.com)

1447 GMT - The luxury housing market slowed in April. Financial volatility led both buyers and sellers at the high end to hit pause, Zillow says. The typical luxury home--defined as the top 5% most valuable homes in each region-is now worth about $1.8 million nationwide, and more than double that in six major metros: San Jose, Los Angeles, San Francisco, Miami, San Diego and New York. Luxury home values have increased 2.7% over the past year, outpacing the 1.4% growth seen in the broader market. High mortgage rates, elevated home prices and ongoing macroeconomic uncertainty have made many people hesitant to enter the market. However, the limited supply of high-end homes and their desirable features continue to keep home values ticking higher, even in a more subdued market, Zillow says. (chris.wack@wsj.com)

1422 GMT - New listings of U.S. homes for sale rose 6.3% year-over-year during the four weeks ending June 1, Redfin says. That's one of the smallest increases of the last three months. The biggest drops were in San Jose, CA. and four Florida metros: Orlando, Fort Lauderdale, Tampa and West Palm Beach. On the buying side, pending home sales declined 0.4% year-over-year to their lowest May level since 2020, and mortgage-purchase applications fell 3% week-over-week. Prospective buyers are backing off because housing costs are near record highs, with the median home-sale price up 1.2% year-over-year and the weekly average mortgage rate approaching 7%, and because the U.S. economy is seen as unpredictable by some. The typical home now sells for about 1% less than its asking price. (chris.wack@wsj.com)

1308 GMT - UBS Group shares might get support from improved clarity on its future capital obligation, especially once a detailed roadmap emerges, Morningstar's Johann Scholtz says. The Swiss government is expected to announce new capital requirements for UBS on Friday. The market is likely to welcome the clarity this will provide, the analyst says in a note. The market seems to have priced in much of the risk already, the analyst says. "To help smooth the transition, the Swiss government is expected to introduce a lengthy phase-in period, possibly extending into the 2030s," Scholtz says. "While UBS has some flexibility, such as upstreaming excess capital from subsidiaries, these efforts are likely only to mitigate rather than eliminate the impact of tighter requirements." Shares fall 0.6%. (adria.calatayud@wsj.com)

1012 GMT - Swedbank's trajectory to reach its long-term target of 15% return on equity could prove volatile, AlphaValue analyst Sylvain Perret writes. The latest plan runs to 2027, and Perret says it is likely the return on equity will be lower than this in 2025 and 2026. Swedbank remains the most exposed Nordic name to variable-rate Swedish and Baltic mortgage lending. Short-term headwinds on revenue will be significant in 2025, but the long-term targets remain at the high end of the sector in terms of profitability. "We maintain our positive view on Swedbank on the back of its high return on equity target, substantial excess capital, and attractive valuation among Nordic banks." Shares fall 1.1%. (dominic.chopping@wsj.com)

0938 GMT - Swedbank used its investor day to reiterate its previous solid financial targets, Deutsche Bank analyst Marlene Eibensteiner writes. The Swedish bank provided an updated strategic plan until 2027 and said it aims to achieve a return on equity of at least 15%, versus consensus at 13.8%. It also targets a cost-income ratio of below or equal to 40%, versus consensus at 39%, and a target CET1 capital buffer of 200 basis points. "However, the ongoing U.S. investigation appears to remain a main uncertainty factor when it comes to potential future excess capital buffer reduction plans," Eibensteiner says. Swedbank remains under U.S. investigation over past anti-money laundering shortcomings. Shares fall 0.9%.(dominic.chopping@wsj.com)

0933 GMT - Mediobanca shareholders should vote in favor of a deal to take over Banca Generali, proxy advisory firm Glass Lewis says in a report. Mediobanca launched a 6.3 billion-euro stock bid in April for Banca Generali. However, Mediobanca is itself seeking to fend off a takeover attempt from Monte dei Paschi and was forced to call a shareholder vote on its Banca Generali bid for June 16. "In our view, the proposed offer represents a substantial opportunity for Mediobanca shareholders," Glass Lewis says in its report. The proxy advisory firm notes Mediobanca's shares trade well above the implied value of Monte dei Paschi's offer, saying investors are effectively endorsing its bid to combine with Banca Generali. Mediobanca shares trade 1.3% higher at 19.82 euros. (mauro.orru@wsj.com)

0931 GMT - Wise delivered meaningful operational progress in fiscal 2025, with infrastructure investments reinforcing its long-term efficiency and scalability, Peel Hunt analysts Gautam Pillai and Barun Singh say in a research note. Upgrades and disciplined execution contributed to a 14 basis point on-year reduction in the cross-border take rate in 4Q, while instant transfers rose to 65%. "Growing adoption among businesses and strategic partnerships with banks like Morgan Stanley and Standard Chartered validate the strength of Wise's infrastructure proposition," the analysts say. Shares in the money-transfer company trade 12.3% higher at 12.16 pounds. (nina.kienle@wsj.com)

(END) Dow Jones Newswires

June 06, 2025 04:20 ET (08:20 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.