Financial News

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

QatarEnergy is preparing to resume liquefied natural gas (LNG) and associated liquids production at the world's biggest such facility for the export market, Reuters reported Wednesday citing sources familiar with the matter.Sources close to the company indicated that two out of the three conventional liquefaction trains at the QELNG North 1 facility in Ras Laffan Industrial City have been successfully brought back online, as per the report.Following a series of aerial attacks on its primary infrastructure in March, QatarEnergy was forced into a total production suspension of LNG and associated liquids at Ras Laffan, the world's largest LNG export facility.Wood Mackenzie analysts suggested that returning the entire 12-train Ras Laffan complex to full service could still take several months.Qatar's export capabilities also remain tethered to the volatile security situation in the Strait of Hormuz.Iranian naval forces continue to enforce a restrictive permission-based transit system, reportedly warning that the waterway remains effectively shut to uncoordinated commercial traffic.Consequently, while Qatar may be able to fill its storage tanks, a return to normal global deliveries is dependent on shipping corridors reopening.The company did not respond immediately to' request for comments.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Middle East War Uncertainty Caps Asian Stock Markets

Asian stock markets largely fell back Thursday, as traders looked for clarity on the status of the Strait of Hormuz and the Persian Gulf war.Hong Kong, Shanghai, and Tokyo finished in the red, while other regional exchanges were mixed.In Japan, the Nikkei 225 opened evenly but declined in trading, finishing off 0.7% as traders booked profits after Wednesday's rally following reports of a Middle East ceasefire.The benchmark Nikkei 225 fell 413.10 to 55,895.32, as losing issues outnumbered gainers 169 to 54.Leading the upside was Yokogawa Electric, up 4.1%, while retail conglomerate Aeon declined 8.2%.In economic news, Japan's seasonally adjusted Consumer Confidence Index declined to 33.3 in March, down from 39.7 in February, reported the Cabinet Office.Japan's machine tool orders jumped by 28.1% year-on-year in March, driven by a 40.4% surge in offshore demand, reported the Japan Machine Tool Builders Association.In Hong Kong, the Hang Seng Index opened lower and could not recover, closing down 0.5% on ebbing optimism regarding Middle East negotiations.The broad gauge Hang Seng fell 140.62 to 25,752.40 as losing issues outnumbered gainers 53 to 36. The Hang Seng TECH Index lost 2.1% on the day, while the Mainland Properties Index fell 0.3%.Leading the upside was aluminum producer China Hongqiao, gaining 5.2%, while property company Longfor declined 5.6%.On the mainland, the Shanghai Composite fell 0.7% to 3,966.17.On the other regional exchanges, the South Korean KOSPI fell 1.6%; the Taiwan TWSE rose 0.3%; the Australian ASX 200 gained 0.2%; the Singapore Straits Times Index fell 0.4%, and the Thai Set inclined 0.3%. In late trading in Mumbai, the Sensex was down 1.2%.The MSCI All Country Asia Pacific Index fell 0.9% on the day.

Convatec Launches New Strategy to Hit Upgraded Revenue Targets

Convatec Group (CTEC.L) on Thursday detailed its new strategic plan to help achieve its aims of fast-tracking "sustainable and profitable" growth and reaching recently upgraded midterm revenue goals.In a same-day release, the medical products and technologies company said its Accelerate strategy marks the next stage of its growth ambitions and builds on its FISBE framework, which stands for focus, innovation, simplify, build, and execute.The new strategy is structured around four pillars, including customer-focused growth, the use of its innovation pipeline and artificial intelligence technology to address patient needs, as well as culture, purpose and performance. The fourth strategic cornerstone, execution excellence, is focused on rapid, "right first time, on-time on-budget" delivery and shortened innovation cycle timelines to streamline operations, improve productivity and meet its goals."Convatec delivers innovative medical solutions to improve the lives of millions of people living with chronic conditions. The opportunity for future growth is substantial. Our Accelerate strategy is how we will deliver the next chapter of Convatec's exciting story," Chief Executive Officer Jonny Mason said.The group's medium-term outlook now targets an annual organic revenue growth of between 6% and 8%, up from the prior 5% to 7% range. Convatec projects its infusion care unit to grow by double digits, as it expects mid-to-high single-digit growth for its advanced wound care, ostomy care, and continence care divisions.Additionally, the group guided to an adjusted operating margin of between 24% and 26% by 2027, compared with 22.3% in 2025. It also expects "sustainable" double-digit adjusted annual EPS growth and a double-digit free cash flow to equity compound annual growth rate.The London-listed stock was nearly 3% in the red by Thursday midday trade.

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%.

Canada's Vulnerability Stands Out Among Trade Partners Amid U.S. Tariffs, Says RBC

Despite the unprecedented scope of the United States tariffs, major economies weathered the trade shock in 2025, but with significant distributional shifts under the surface, said RBC.U.S. imports reoriented rapidly away from higher-tariffed regions like China, but still rose overall in 2025 as American consumers, businesses, and governments continued to spend, noted the bank. Almost 90% of global trade that doesn't involve the U.S. continued to grow.Distributional impact has been concentrated, stated RBC. Headline gross domestic product in Canada held up better than feared, while specific sectors -- steel exports were down 30%, motor vehicles, aluminum -- and regions, such as Ontario and Quebec with an over 6% effective tariff rates, have been hard hit.Canada's heavily integrated cross-border supply chains are a challenge that most offshore U.S. trade partners don't face, pointed out the bank. Canada's share of the U.S. import market declined in 2025 despite almost 90% of exports remaining tariff-free.The world can absorb U.S. trade shocks, while Canada cannot as easily, according to RBC. The year marked global resilience to trade policy uncertainty, and the U.S. share of Canada's exports declined. But, it is still high at 71.6%, leaving Canada fundamentally more exposed than most other trade partners.

Brent Crude Up 3.25% at US$97.85 and NY Crude Up 3.4% at US$97.65

S&P Futures Down 0.3% and Nasdaq 100 Futures Down 0.2%

Commerzbank on Overnight News

Commerzbank in its "European Sunrise" note of Thursday highlighted:Markets: United States Treasuries weaken in late New York session, turn sideways in Asia. E-minis little changed, Asian equities mixed. The US dollar (USD) trades stronger. The euro (EUR) at US$1.167. Brent recovers to $97/barrel.Fed: Minutes show that the vast majority thought inflation progress could be slower, while it viewed employment risks as skewed to the downside. "Many" said higher-for-longer inflation could call for hikes, while "most" judged protracted Iran war could hit job market and warrant cuts and "some" saw "strong case" for two-sided language on rate path.Fed: San Francisco Federal Reserve Bank President Mary Daly calls the economy "remarkably resilient," says it's too early to know the economic consequences of the Iran war.Fed economist Chris Phelan is said to be the front-runner for President Donald Trump's economic adviser role (Politico sources).Iran plans to restrict traffic through the Strait of Hormuz and to charge tolls (WSJ). White House reiterates it wants no limitations at Hormuz, including tolls, says Lebanon isn't part of the ceasefire. Vice President JD Vance says there won't be any sanctions relief if Iran develops nuclear weapons, sees signs that Hormuz is starting to reopen, Israel offered to restrain strikes during talks.Iran: Parliament speaker Mohammad Bagher Ghalibaf says ceasefire deal with the U.S. was violated, the Islamic Revolutionary Guard Corps (IRGC) says it's preparing "heavy" response to attack on Lebanon (Mehr). Iran designates routes for safe passage through the Strait of Hormuz (Nour).Iran/Israel: Prime Minister Benjamin Netanyahu says this isn't the war's end. He insisted that the ceasefire wouldn't include Hezbollah.NATO: President Trump says NATO "won't be there if we need them again." Trump weighs punishing certain countries over Iran support, including moving troops out of some states and potential closure of at least one base (WSJ sources). NATO Secretary-General Mark Rutte says his meeting with Trump was a discussion among "good friends."Venezuela: The U.S. weighs lifting central bank sanctions to unlock oil.==EUROPE:EU: European Commission Executive Vice President Valdis Dombrovskis says the European Union will be hit by "stagflationary shock" (FT).France: Budget Minister David Amiel says the government is sticking to the 2026 deficit target of 5%, could beat it depending on the economy.

WTI Crude Oil Futures Rise 3.2% to $97.40 Pre-Bell; Brent Futures Climb 3.1% to $97.67

WTI, Brent Crude Oil Futures Jump Pre-Bell as Iran Closes Hormuz Chokepoint After Israel Pounds Lebanon

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

Malaysian shares closed lower on Thursday, reversing yesterday's gains, mirroring regional losses.Investors turned cautious after Donald Trump reaffirmed plans to keep US forces deployed around Iran until a "real agreement" is secured, ahead of talks in Islamabad, Pakistan.The FTSE Bursa Malaysia KLCI shed 10.07 points to shed 0.6% lower at 1,686.24. The day range was between 1,680.01 and 1,692.65.In economic news, the World Bank projected the Malaysian economy to expand 4.4% in 2026, at a softer pace than 5.2% growth in 2025. The bank highlighted that the country will benefit from surging AI-related exports and investment.In corporate news, shares of M N C Wireless (KLSE:MNC) slumped 23% on Thursday's close after it disclosed plans to launch the e-SIJIL platform, aimed at sectors such as government, finance, education, and legal, to streamline the creation, verification, archiving, and sharing of secure digital documents.

Oil Prices Still Higher than Pre-Iran War Levels Amid Uncertainty About Ceasefire, Commerzbank Says

Though the markets responded with relief to the U.S. and Iran's ceasefire announcement, prices remain significantly higher than before the outbreak of the war amid ongoing uncertainty about whether the ceasefire will be honored, Commerzbank said in a Wednesday note.During the two-week ceasefire, further negotiations are set to take place. However, it remains unclear how involved Israel was in the agreement and to what extent its role may influence compliance, the bank noted.The 10-point plan that forms the basis of upcoming peace talks includes demands likely to be unacceptable to the U.S., including lifting of all sanctions, withdrawal of U.S. military forces from the Middle East and continued Iranian control over the Strait of Hormuz, the bank said.There is also uncertainty about how quickly maritime traffic through the strait can be restored, Commerzbank said.International Energy Agency Executive Director Fatih Birol said significant damage to the region's energy infrastructure speaks against a rapid normalization of supply. Experts estimate reconstruction costs to be about US$25 billion.

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

The European Council, a body which comprises heads of state of each EU member country, said it welcomes the two-week ceasefire between the US and Iran, according to a statement on Wednesday.Thanking Pakistan for facilitating the deal, it said the foes must now negotiate "a swift and lasting end" to the war through diplomatic means.It encouraged "quick progress" in order to protect Iran's civilian population, restore security to the region and to "avert a severe global energy crisis".The statement concluded by calling on all sides to implement the ceasefire, including in Iran and said that European governments would contribute "to ensuring freedom of navigation in the Strait of Hormuz."Less than two days old, the ceasefire agreement has had a shaky start with vessels showing reluctance to exit the Strait of Hormuz amid a lack of trust in the Iranian authorities while Iran says Israeli attacks on Lebanon are "a grave violation" of the ceasefire deal.While gas and oil futures contracts plunged upon the announcement of a ceasefire, prices were already rising again on Thursday, as a hoped-for normalization of energy flows has so far failed to materialize.

CBOE Volatility Index Rises 2% Pre-Bell Amid Concerns Iran Ceasefire at Risk as Israel Hits Lebanon

US Equity Futures Fall Pre-Bell as Fresh Israeli Strikes on Lebanon Strain Fragile Iran Truce

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

Singapore shares closed lower on Thursday, tracking broader regional losses, with markets assessing the longevity of the US-Iran two-week ceasefire.The Straits Times Index (STI), a key benchmark for the Singapore Exchange, ranged between 4,974.34 and 5,009.89 throughout the day. It ended the session at 4,977.08, down 18.97 points or 0.4% compared to Wednesday's close.Meanwhile, US President Donald Trump reiterated his resolve to keep its military assets around Iran until a "real agreement" is made ahead of the crunch talks in Islamabad, Pakistan.In company news, shares of InnoTek (SGX:M14) were up nearly 5% at the close, with the company targeting to raise approximately SG$16 million through the placement of up to 24.6 million shares at SG$0.6506 per share.CDW (SGX:BXE) was down over 4% as the precision components provider reported three consecutive years of pre-tax losses for its three most recent financial years.Meanwhile, shares of Parkson Retail Asia (SGX:O9E, HKG:3368) closed nearly 2% higher as it proposed to renew its share purchase mandate at its 2025 annual general meeting.

Crude Oil Prices Rise as Geopolitical Risk, Supply Concerns Remain Despite Ceasefire

Crude oil prices saw gains on Thursday amid uncertainty about the ceasefire and whether the Strait of Hormuz will be reopened.Brent crude at last look rose 2.9% to US$97.51/barrel and West Texas Intermediate crude climbed 3.1% to $97.29/barrel. Despite the ceasefire, analysts said the geopolitical risk premium remains and the chances of the strait reopening any time soon appear low, Reuters said in a Thursday report."The futures market looks a bit broken," Vandana Hari, founder of oil market analysis provider Vanda Insights, was quoted as saying. Otherwise, "prices should have snapped right back to pre-ceasefire levels by now."Shippers said clarity was needed on the terms of the ceasefire before resuming transit through the Strait of Hormuz, according to the report."Even if shipments resume, the risks won't disappear overnight," Reuters quoted Susannah Streeter, chief investment strategist at Wealth Club, as saying. "Tankers may be forced to navigate mined waters and a heightened military presence, all of which will keep insurance premiums high and freight costs elevated."

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

Energy markets face prolonged volatility as a fragile ceasefire fails to restore traffic through the Strait of Hormuz, Sparta Commodities' head of research Neil Crosby said in a note on Thursday.According to Crosby, logistical hurdles, sea mine threats, and fresh attacks on Saudi infrastructure suggest global supply chains will remain severely constrained for at least another month.Sparta noted that even under peaceful conditions, clearing these mines is a long-term endeavor, suggesting that oil flows through the world's most critical chokepoint will remain significantly reduced for at least four weeks.The market outlook is further complicated by unconfirmed reports of fires near Saudi Arabia's Abqaiq processing facility and confirmed strikes on the East-West pipeline system, it added.These attacks directly threaten the primary rerouting alternative, which currently handles approximately 4 million barrels per day via Yanbu.Additionally, Iran's Revolutionary Guard Corps is sharing instructions and maps for ships to avoid mines, even though it is still unclear if they have laid such explosives in the waterway or not.With leverage for a forced reopening limited, analysts suggest a "toll booth" system managed by Iran may become the only short-term path to restoring flow, though this presents significant legal and sanctions hurdles for vessel owners, Crosby noted.Meanwhile, in Europe, the supply crunch is triggering early signs of oil nationalism, with major players like Galp reportedly curbing diesel exports to prioritize domestic supply.As physical crude prices continue to climb, Sparta warned that governments may soon be forced to implement rationing.