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

0836 GMT - TKMS offers exposure to Europe's naval rearmament and undersea warfare modernization, Stifel says in a note initiating the stock at buy. The German naval defense company is capable of more than doubling its secured revenue base, with more than 25 billion euros of backlog and a mature pipeline, according to analyst Thomas Mordelle. "Submarine design authority, pressure-hull manufacturing, acoustic engineering and naval combat-system integration are among NATO's scarcest capabilities," Mordelle says. Naval demand is rising faster than available capacity and TKMS is positioned to benefit as it moves beyond platform manufacturing into becoming a sovereign maritime systems integrator, Stifel says. Stifel sets a target of 105 euros. TKMS shares trade 2.3% higher at 87.30 euros. (sarah.sloat@wsj.com)

0834 GMT - Malaysia's inflation is expected to remain contained in 2026, Kenanga Investment Bank says, as it lowers its estimates to 1.9% from 2.1%. It cites subsidies continuing to cushion the impact of higher global energy prices, Kenanga economists say in a note. Subsidied fuel, coupled with broader electricity bill protection through December, should limit some cost pass-through. However, elevated crude prices, disruptions to the Strait of Hormuz and weather-related supply issues could push up transport, food and production costs, posing upside risks to inflation, they reckon. Bank Negara Malaysia is expected to keep the policy rate at 2.75% through 2026, with inflation below 2% allowing policymakers to look through supply-driven price pressures, they add.(yingxian.wong@wsj.com)

0827 GMT - South Korean internet giant Naver's expanding artificial-intelligence data centers could generate new, sizable revenue streams by renting AI computing power to clients, Mirae Asset Securities' Lim Hee-seok says. Revenue from Naver's "GPU-as-a-Service" business, which allows companies to rent access to powerful AI chips, could rise from 1.2 trillion won in 2027 to 10.5 trillion won in 2030 and 18.5 trillion won in 2032, the analyst writes. Lim expects the company's AI data centers to begin operating with an initial capacity of 55 megawatts in 1H 2027, expanding to 100 MW by end-2027, 200 MW in 2028, 600 MW in 2030 and 1 gigawatt in 2032. Operating profit margins for Naver's AI data-center business could widen from 3% in 2027 to 8% in 2030 and 18% in 2032, he adds. (kwanwoo.jun@wsj.com)

0806 GMT - The Bank of Japan's policy rate isn't likely to rise above 2%, as this would likely push the central bank into restrictive territory, says Capital Economics' Marcel Thieliant in a note. After the central bank raised interest rates to 1.25%, Thieliant reckons it could tighten policy more rapidly than anticipated in the coming months. Capital Economics projects the BOJ to lift its policy rate to 2% as soon as mid-2027, he says, noting that the view is more aggressive than what financial markets are pricing in. The head of Asia Pacific says risks are tilted towards the policy rate reaching a lower peak than expected, given Japan's planned sales tax cut in April could reduce inflation to very low levels. (megan.cheah@wsj.com)

0755 GMT - Taiwan's central bank is likely to raise its policy rate by 12.5 bps to 2.125% in December, DBS senior economist Ma Tieying says in a note. The Central Bank of the Republic of China (Taiwan)'s inflation outlook may be too sanguine, she says. The central bank expects 2026 inflation to come in at 2.03% before cooling in 2027 to 1.83%. Ma also expects Taiwan's inflation to remain above 2% for the rest of this year and into 2027. She cites prolonged energy and commodity price pressures as U.S.-Iran tensions continue as well as renewed weakness in Asian currencies against the dollar after the Fed hiked rates. (amanda.lee@wsj.com)

0741 GMT - Gold prices rise above the $4,400-an-ounce mark, supported by lower Treasury yields and easing oil prices. "Gold's resilience is notable given that the Fed has just begun a new hiking cycle and the dollar remains relatively firm, suggesting continued demand from investors less sensitive to the traditional rates-and-dollar relationship," analysts at Saxo Bank say. In early European trading, New York gold futures are up 0.8% to $4,434.90 a troy ounce, on track for a modest weekly gain. Still, the prospect of further interest-rate hikes this year continues to weigh on the precious metal, as higher rates typically increase gold's opportunity cost and strengthen the dollar.(giulia.petroni@wsj.com)

0732 GMT - Xiaomi's credit profile is likely to remain resilient this year despite weakness in its core smartphone business, says Fitch Ratings in a note. Rising memory costs could lead to a decline in smartphone shipments and profitability for the Chinese consumer electronics company, Fitch says. However, the larger scale and stronger cash generation of Xiaomi's internet of things and internet services segments, compared with previous smartphone downturns, should provide a buffer. "We expect Xiaomi to maintain its global market position in smartphones, a large net cash position and low Ebitda leverage," the ratings company says and sees Xiaomi's outlook as stable. Shares are up 0.3% at 26.22 Hong Kong dollars. (megan.cheah@wsj.com)

0731 GMT - Valuations for technology, media and telecom stocks in the U.K. still reflect concerns over artificial intelligence, but this means the sector offers attractive opportunities for investors, Berenberg analysts write in a note. "While the market has become slightly more discerning over the impact of AI, concern remains, reflected in still depressed valuations," they say. Meeting market expectations, alongside with AI-driven growth and efficiency gains, should support a rerating, though it might take some time for this to happen, they say. (najat.kantouar@wsj.com)

0726 GMT - European stock indexes largely open lower, though AI-related shares gain, as momentum in defensive sectors stalls after strong gains in the last session. Telecoms and chemicals companies drag on the Europe-wide Stoxx 600, which edges 0.1% lower. London's FTSE 100 slips 0.2%, dragged by falls for telecoms groups Airtel Africa and BT, which slide 4.6% and 2.7%, respectively. The German DAX falls 0.4% as Deutsche Telekom declines by 3%. Chip maker Infineon climbs 2.8%, while data-center power provider Siemens Energy rises 0.8%. Luxury stocks are under pressure in Paris as the CAC 40 drops 0.4%. Sector bellwether LVMH falls 1.2%, while telecoms group Orange slides 3.3%.Italy's FTSE MIB drops 0.2%, while Spain's IBEX 35 slips 0.3%. The Dutch AEX is one bright spot, up 0.1% as semiconductor stocks gain. ASML rises 1.9%.(josephmichael.stonor@wsj.com)

0725 GMT - European energy stocks open lower Friday morning as oil prices continue to slide. The pullback in prices largely reflects a perception that geopolitical risks are moderating, MUFG's Soojin Kim writes. Diplomatic efforts are stepping up while China and other partners are reported to have urged Iran to restrain Houthi attacks near Bab el-Mandeb Strait, Kim adds. This pushes Brent crude down 1.9% to $102.87 a barrel while WTI falls 1.7% to $100.15 a barrel. In London, Shell and BP both fall around 1%. Spain's Repsol drops 1.5% and Italy's Eni is 1.4% lower. Norway's Equinor falls 0.5%.(adam.whittaker@wsj.com)

0719 GMT - Bitcoin rises modestly following gains on Wall Street overnight driven by a rally in tech stocks. Investors buying shares of companies tied to artificial intelligence boosted tech stocks, leading U.S. stock indices higher. An easing of oil prices is also supporting risk sentiment. Lower oil prices reflect some profit taking and reports that Saudi Arabia could soon restore some flows through its damaged East-West pipeline which was closed after a drone attack from Iraq. Bitcoin rises 1.1% to $77,392, LSEG data show. (renae.dyer@wsj.com)

0713 GMT - Oil prices extend losses from the previous session, with Brent crude now at around $102 a barrel amid efforts to restore Saudi export capacity. "Supply concerns have eased as Saudi Arabia works to restore its damaged East-West pipeline," says Soojin Kim, analyst at MUFG. "The recent decline in spot oil prices largely reflects a perception of moderating geopolitical risks, but continued threats to both Hormuz and Red Sea routes should keep Brent above pre-war levels and volatility elevated." In early European trading, Brent falls 2.2% to $102.54 a barrel and is on track for a weekly loss of nearly 2%, while WTI futures are down 1.9% to $99.97 a barrel. Attention now shifts to the United Nations General Assembly in New York next week, as the U.S. has reportedly agreed to let Iran's leaders participate.