FINWIRES — Financial News

Persian Gulf Uncertainty Damps European Bourses Midday

European bourses tracked moderately lower midday Thursday as traders weighed Persian Gulf hostilities, rising oil prices, and an uncertain Strait of Hormuz opening.Oil stocks led gains on continental trading floors, while bank and tech shares lagged.Investors also eyed Wall Street futures in the red, and lower closes overnight on Asian exchanges.In other news, the US and Iranians are set for direct negotiations in Pakistan over the weekend, reported Turkey's Anadolu Agency, citing officials in Islamabad.The pan-continental Stoxx Europe 600 Index was off 0.7% mid-session.The Stoxx Europe 600 Technology Index was down 1.7%, and the Stoxx 600 Banks Index lost 0.6%.The Stoxx Europe 600 Oil and Gas Index rose 1.2%, while the Stoxx 600 Europe Food and Beverage Index declined 0.8%.The REITE, a European REIT index, fell 0.7%.On the national market indexes, Germany's DAX was down 1.3%, and the FTSE 100 in London lost 0.4%. The CAC 40 in Paris was down 0.9%, and Spain's IBEX 35 eased 0.8%.Yields on benchmark 10-year German bonds were higher, near 2.98%.Front-month North Sea Brent crude-oil futures were up 4.1% at $98.63 a barrel.The Euro Stoxx 50 volatility index was up 1.2% at 25.01, indicating above-average volatility for European stock markets in the next 30 days, a negative signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.

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Oil & Energy18d ago

Middle East Oil, Gas Output Recovery to Take Months Despite Hormuz Ceasefire, Warns Wood Mackenzie

After the ceasefire between the US, Israel, and Iran this week, a recovery in oil and gas flows through the Middle East is still a long way off, with plenty of steps and processes that could last months, according to a report by commodity analysts at Wood Mackenzie.The report said that 11 million barrels per day of upstream oil production remains shut in, meaning they are not currently operational, even as the underlying capacity remains intact. This cannot be restored until export routes normalize and vessel traffic resumes at scale.In order to bring these barrels back to market, "A 'workable system' of transit and shipowner confidence in the security of the transiting vessels is essential," said Alan Gelder, SVP Refining, Chemicals and Oil Markets at Wood Mackenzie.Gelder added that facilitating insurance, trade finance and "sustained inbound vessel transits" are key in restoring confidence in the Strait.He also noted that ballasting vessels, or ships that come in empty to pick up oil, will not be willing to do so, given the risk of getting trapped, if hostilities were to resume once again after the two week ceasefire.The report noted that as exports begin to ramp-up, storage will help facilitate upstream production and refining to restart activity in full-swing.However, it noted that not all countries have sufficient storage. As such, Saudi Arabia and the UAE can ramp up output quickly, while Iraq could take six to nine months to return to pre-conflict output levels due to reservoir and operational complexities.Coming to the global gas markets, the ceasefire may allow trapped LNG cargoes in the Gulf to exit, offering limited near-term relief, according to Wood Mackenzie.For real structural change in supply, however, Qatar's Ras Laffan LNG facility has to restart its 12 operable trains, according to Tom Marzec-Manser, Europe Gas and LNG analyst at Wood Mackenzie. "It is unclear if QatarEnergy would consider doing this during a ceasefire," he said.The firm estimates that even if restart efforts begin in early May, full restoration of all 12 trains could take until the end of August, while damaged capacity at the South site may remain offline for years.Meanwhile, disruptions to domestic gas infrastructure in the UAE could further complicate regional supply dynamics, Marzec-Manser said.He warned that "sustained disruption at Habshan," Abu Dhabi's gas processing facility, could significantly tighten domestic gas availability, potentially forcing the UAE to cut reinjection volumes or even ramp up imports via the Dolphin pipeline system.

US Markets18d ago

Constellation Issues Weak Full-Year Earnings Outlook as Fiscal Fourth-Quarter Results Decline

Constellation Brands (STZ) shares inched lower early Thursday after the beer and wine company provided a full-year earnings outlook below Wall Street's estimates and recorded year-over-year declines in its fiscal fourth-quarter results.The maker of Modelo and Corona anticipates comparable earnings to come in between $11.20 and $11.90 per share for fiscal 2027, it said late Wednesday, while the current consensus on FactSet is for $12.38. In the previous fiscal year, comparable EPS dropped 14% to $11.82 on an annual basis.In April 2025, the company projected EPS to grow by mid-single-digits to low-double-digits for fiscal 2027. Constellation also withdrew its previously issued fiscal 2028 outlook to reflect the current environment, it said.Enterprise organic sales, beer sales and organic sales in the wine and spirits division are all expected to range from a 1% decline to a 1% rise for the ongoing fiscal year, according to Constellation. Company-wide organic sales slid 10% in fiscal 2026."Looking ahead to fiscal 2027, while we are encouraged by the momentum displayed during the fourth quarter across our beer and wine and spirits businesses, we expect the operating environment to remain dynamic given the evolving socioeconomic backdrop and limited near-term visibility," the company said.The stock declined 0.8% in the most recent premarket activity.The company posted adjusted EPS of $1.90 for the three-month period ended Feb. 28, down from $2.63 the year before, but ahead of the Street's view of $1.71. Net sales fell 11% to $1.92 billion, beating the average analyst estimate of $1.88 billion."Despite the dynamic operating environment in fiscal 2026, we remained focused on the factors within our control and executed with discipline," Chief Executive Bill Newlands said in the earnings release. "We expect consumers will continue to navigate a shifting macroeconomic environment, but we remain encouraged by the momentum we saw in the fourth quarter."Beer revenue ticked up 1% to $1.73 billion, buoyed by shipment growth of 1.1% and favorable pricing. The division's depletion rate, or the pace at which units are sold to end consumers, edged up 0.6%, as gains in the Pacifico, Victoria and the Modelo Chelada brands more than offset declines in Modelo Especial and Corona Extra.Sales of wine and spirits tumbled 58% to $194.2 million, amid a 73% plunge in shipment volume. This reflected the impacts of the divestiture of certain wine and spirits brands, strategic pricing actions on certain brands and changes in distributor contract obligations, the company said. The division's depletion rate inclined 8.3%.

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Financial News · Live Terminal

Persian Gulf Uncertainty Damps European Bourses Midday

Middle East Oil, Gas Output Recovery to Take Months Despite Hormuz Ceasefire, Warns Wood Mackenzie

Persian Gulf Uncertainty Damps European Bourses Midday

Middle East Oil, Gas Output Recovery to Take Months Despite Hormuz Ceasefire, Warns Wood Mackenzie

Oil, Ceasefire Views Damp Wall Street Pre-Bell; Asia, Europe Off

Germany's Manufacturing Production Contracts in February on Lower Pharmaceuticals, Electronics Output

Indian Equities Slip on Thursday Amid Rising Middle East Tensions

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Middle East War Dents Japan Consumer Confidence

Japan Machine Tool Orders Jump 28% in March

Market Chatter: QatarEnergy Initiates LNG Production Restart at Ras Laffan Complex

Middle East War Uncertainty Caps Asian Stock Markets

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Constellation Issues Weak Full-Year Earnings Outlook as Fiscal Fourth-Quarter Results Decline

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Commerzbank on Overnight News

Malaysian Shares Ended Lower, Mirroring Regional Losses; M N C Wireless' Shares Plunge 23%

US 10-Year Treasury Yield Falls to 4.29% Pre-Bell; 2-Year Rate Leans Lower to 3.79%

US Treasury Yields Mixed Ahead of Fed's Preferred Inflation Data as Lebanon Pounding Risks Iran Truce

European Council Calls for Swift Progress to Lasting US-Iran Peace, Protect Civilians, Restore Energy Normalcy

Singapore Shares Retreat, Track Regional Losses as Markets Asses Fragile US-Iran Ceasefire

Strait of Hormuz Flow to Remain Constrained for Weeks Despite Ceasefire, Says Sparta