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

0759 GMT - The Federal Reserve signaling a potential second interest-rate increase this year remains a major overhang for the Asian real-estate investment trust sector, say DBS Group Research analysts in a note. The first rate hike by the U.S. central bank in over three years last month has placed REITs under pressure. Rising bond yields, higher funding costs for REITs and a hawkish Fed outlook reduces the appeal of REIT distribution yields against risk-free alternatives, they say. However, the sector's fundamentals remain resilient, DBS adds. More defensive REIT subsectors such as healthcare could outperform peers, while industrial REITs with large non-Asian exposure could be subject to more volatility in financing costs and foreign-exchange movements. (megan.cheah@wsj.com)

0757 GMT - European natural-gas prices climb back above 80 euros a megawatt-hour as concerns over continued attacks on shipping in the Gulf raised fresh questions about the security of LNG supplies. According to a Bloomberg report, Qatar had assembled a fleet of at least 12 empty LNG tankers in the Persian Gulf, suggesting it was preparing to resume or increase shipments. However, intensifying attacks on vessels in the region have heightened concerns over the safety of transits. In early trading, the benchmark Dutch TTF contract rose 3.2% to 80.59 euros a megawatt-hour. Meanwhile, European Union underground natural-gas storage facilities are currently 72% full, according to data from industry group Gas Infrastructure Europe, well below the seasonal average. (giulia.petroni@wsj.com)

0753 GMT - Hyundai Motor's 3Q earnings could come in below expectations, DB Financial Investment's Nam Ju-shin says. Prolonged labor unrest and production disruptions at the South Korean car maker likely weighed on its global sales in the July-September period, the analyst writes in a note. Lower plant-utilization rates, higher fixed costs and increased raw-material costs also likely pressured the company's profit margins, Nam says. He expects Hyundai Motor's operating profit to have fallen 6.4% from a year earlier to 2.376 trillion won in 3Q, below a market consensus estimate of 2.819 trillion won. The brokerage cuts its 2026 and 2027 earnings forecasts for the company by 8% and 14%, respectively, on sluggish vehicle sales and the won's appreciation. (kwanwoo.jun@wsj.com)

0750 GMT - Unite Group's willingness to sacrifice rate for occupancy reflects tougher leasing conditions and a desire to maintain market share, Barclays's Paul May and Kanad Mitra write. "While occupancy remains healthy, weakening pricing power increases the risk of a broader sector price war next academic year, particularly in markets facing higher supply growth," they say. Barclays adds that it sees downside risk to sector growth expectations as rental growth slows and occupancy becomes more dependent on pricing. Barclays has an underweight rating on the stock and a 460 pence target price. Shares are down 3% at 428.80 pence and 23% lower over the year-to-date. (ian.walker@wsj.com)

0750 GMT - Tesco's cost-savings push is working to offset cost inflation, Richard Hunter of Interactive Investor says in a note. The savings could be particularly important if the war in the Middle East continues to have an inflationary effect, he says. It will also keep prices low for consumers, he adds. The grocer's increase to its share buyback program also reflects its massive cash generation capability, Hunter says. Shares are up 3.3% at 491.7 pence. (aimee.look@wsj.com)

0731 GMT - Shell's third-quarter adjusted earnings should rise 14% quarter-on-quarter to $11.2 billion, HSBC analyst Kim Fustier writes. The British energy major's quarterly performance update contained few surprises, with very strong refining margins and robust oil and gas trading being the key elements, she says. The record margins will more than offset a fall in refinery utilization rates, she adds. Shares trade 1.1% higher at 3,688 pence.(adam.whittaker@wsj.com)

0726 GMT - European stock indexes drop sharply at the open as inflation concerns on the continent heighten. Banking, technology and industrial sectors are among those that fall more than 1% as the Europe-wide Stoxx 600 drops 1.1%. London's FTSE 100 falls 0.8%. Standard Life drops 5.8% after a major shareholder halved its stake. The German DAX falls 1%, dragged by a 3.1% decline for chip maker Infineon and a 2.2% slide for industrials giant Siemens. In Paris, banks weigh on the CAC 40--down 0.8%--with Societe Generale falling 2.85%. Autos also sell off, with Stellantis down 2.8%. Italy's FTSE MIB loses 1.3% to trade at May lows, while Spain's IBEX 35 falls 1.1%. The Dutch AEX is down 0.9%, with ASML slipping 2.3%. (josephmichael.stonor@wsj.com)

0707 GMT - Fresenius Medical Care's surprise CEO change will be taken negatively by investors and points to a challenging outlook for the German dialysis specialist, analysts at J.P. Morgan say. The departure of CEO Helen Giza comes less than 18 months after she presented an ambitious business plan with guidance through 2030, the analysts say in a research note. Her exit suggests it is now less likely the company will be able to demonstrate the benefits from the rollout of a new dialysis technology in the U.S., they add. The end of regulatory tailwinds that recently flattered the group's results mean Fresenius Medical Care could be set for an operating profit contraction, according to JPM. Shares fall 2.7%. (adria.calatayud@wsj.com)

0704 GMT - Vodafone Group's new U.K. business VodafoneThree is shaping up to become a bright spot for the U.K. telecommunications group, analysts at Deutsche Bank say in a research note. The company set out new midterm targets for its U.K. unit that look impressive, especially in the context of a highly competitive market in the country, the analysts say. The new targets imply between 2.2 billion and 2.8 billion pounds of adjusted Ebitda after leases by fiscal 2032 for the unit and are likely toward the upper end of analysts' expectations, according to Deutsche Bank. The update also supports Deutsche Bank's upbeat view on the prospects for the group's cash flow and share price, given that its U.K. and Africa businesses should help offset pressures elsewhere, the analysts add. (adria.calatayud@wsj.com)

0702 GMT - Tesco's shares are likely to respond positively after the U.K. grocer pushed the lower end of its adjusted operating profit guidance for its fiscal year, analysts at Bernstein say in a note. The company also increased its share buyback program for the year, further adding to the likelihood that shares will react well, they say, noting that Tesco had a profit beat with strong margins. (aimee.look@wsj.com)

0659 GMT - Porsche could be one of the first automakers in the premium/luxury segment to show it can maintain its volume and earnings momentum going forward, J.P. Morgan analysts write. Following the company's investor day, the bank says it continues to see evidence of earnings stabilization, a business model in China that might represent a growth opportunity in the future, and solid free cash flow generation. J.P. Morgan says Porsche's strategic plan is framed around sharpening the sports-car identity and desirability, a more disciplined, execution-led operating model, and a 2035 time horizon that acknowledges tougher external assumptions. "Overall, the message reinforces Porsche's positioning between sporty premium and sporty luxury, with scope to migrate further up the price curve while maintaining a strong focus on quality and residual values."(dominic.chopping@wsj.com)

0641 GMT - Aberdeen's sale of half its stake in Standard Life might raise longer-term questions about the company's strategic relationship, Citi's Nicholas Herman says. However, there aren't immediate implications for the existing commercial partnership between the companies, Citi notes. Aberdeen said it would sell half its 10.4% stake in savings-and-investment business Standard Life. The sale does pose the question of what could happen if the stake were to be fully divested, the analyst adds. Citi expects Aberdeen to use the proceeds to support the scaling of its Interactive Investor business and expand capabilities in its investments business.