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

0753 GMT - Orsted's stabilizing execution and project delivery is a first step toward a return to growth, Citi analyst Jenny Ping writes. The competitive landscape now seems more rational and government support is improving, which should deliver better project return rates, the bank says. With around 20-25 gigawatts of viable tenders over the next 18 months, most with improving auction frameworks that better align with industry cost structures, the Danish renewable-energy company has substantial scope to deliver profitable growth, it says. "In our view, shares currently reflect little value for the unsecured pipeline, investors are effectively receiving a free growth option." Citi upgrades Orsted stock to buy from neutral and lifts its target price to 165 Danish kroner from 142 kroner. Shares rise 1.6% to 141.58 kroner. (dominic.chopping@wsj.com)

0743 GMT - WuXi XDC Cayman retains its bull at Citi Research on strong growth visibility following its 1H results. The healthcare services company's management maintained its 2026 guidance for 30%-35% revenue compound annual growth over 2025-2030, while noting its total backlog--including milestone fees--has risen 62% on year, the Citi analysts note. It now expects a revenue CAGR in 2026-2035 of 26%, up from 24%, citing a stronger growth outlook. The bank raises its target price to 93.00 Hong Kong dollars from HK$73.00 and maintains a buy rating. Shares decline 3.6% to HK$77.30. (megan.cheah@wsj.com)

0733 GMT - Oil prices held below $90 a barrel as a flurry of positive headlines around U.S.-Iran peace talks soothed oil traders. In early European trading, Brent crude contracts for October delivery fall 2.5% to $86.38 a barrel, while WTI contracts fall 2.6% to $80.20 a barrel. Iran and Oman diplomats discussed a framework that would allow shipping to resume through the Strait of Hormuz, the countries said in a joint statement. Meanwhile, "anecdotal evidence suggests there is an increasing flow of vessels utilizing the Omani route through Hormuz," ANZ analysts said. In addition, Axios reported that around 40 ships transited the strait over the weekend, while The New York Times reported U.S. diplomats would return to the Middle East. (josephmichael.stonor@wsj.com)

0733 GMT - Aviation investors can't agree on where airline stocks are heading, though the overall mood is slightly pessimistic, Citi analyst Conor Dwyer says. While large investors are placing huge bets that airlines will do well, others are betting on the opposite and the instability is making stocks jump around wildly, the analyst says. Ryanair, Air France-KLM and IAG have seen the highest proportion of positive bets, with sentiment toward Lufthansa and Wizz Air being more pessimistic, Dwyer says. "Investor sentiment across the sector is becoming more debated, with short and long crowding metrics rising across most of the sector month-over-month," he says. Lufthansa rises 2.5%, followed by Ryanair, up 2.2%, and Wizz Air, up 2%. Air France-KLM is down 0.3%. (anthony.orunagoriainoff@dowjones.com)

0732 GMT - European banks are set to benefit from accelerating loan growth among corporates, Citi analysts say. Business are starting to releverage, with corporate debt-to-GDP at multiyear lows. The U.S. bank believes this acceleration is sustainable and will be helped by AI investment. Banks in the U.K., Ireland and Netherlands are well placed to benefit from this trend, the analysts add. U.S. hyperscalers also require European debt financing, and AI investment should help fee and trading income, Citi writes. U.S. banks are best positioned to benefit from the trend, but European banks should also be boosted. ING, ABN AMRO and Societe Generale are particularly well-placed for lending and UBS and Barclays for new debt and equity issuance, Citi says. (michael.hennessey@wsj.com)

0724 GMT - European oil stocks open lower Wednesday as oil prices fall on diplomatic talks to reopen the Strait of Hormuz. Talks between Pakistan and Iran are reducing the risk of an escalation in the Middle East conflict, ANZ analysts write. The analysts note that local media reports said the discussions yielded valuable results. This pulls Brent crude futures down 1.9% to $85.66 a barrel and WTI is 1.5% lower to $77.96 a barrel. Norway's Equinor leads the fallers, trading down 2.5%. In London, BP declines 2.2% while Shell is down 1.4%. Italy's Eni is down 1.6%, France's TotalEnergies slips 1.3% and Spain's Repsol moves 1% lower.(adam.whittaker@wsj.com)

0721 GMT - European stock indexes largely rose at the open, as lower oil prices buoyed sentiment. Software and AI-linked stocks weaken, though banks gain as the Europe-wide Stoxx 600 rises 0.1%. In Paris, the CAC 40 gains 0.3% as luxury stocks recover some of Tuesday's losses. The German DAX edges 0.1% lower, as gains for banks--Deutsche Bank rises 2.4%--are outweighed by a 2.5% fall for index-heavyweight SAP. London's FTSE 100 is flat. Oil majors fall on lower crude prices--BP and Shell decline 2.1% and 1.4%, respectively--though precious metals miners gain. Italy's FTSE MIB rises 0.2%, while the IBEX 35 adds 0.2%. The Dutch AEX slips 0.2% as AI-related stocks weaken ahead of Nvidia earnings later Wednesday. ASML falls 1%. (josephmichael.stonor@wsj.com)

0717 GMT - Midea Group is likely to benefit from a strong El Nino over 2026-2027, as the weather pattern could boost demand for air conditioners, say DBS Group Research analysts in a note. Extreme El Nino episodes have historically driven air-conditioning replacement and new equipment demand, which could benefit the home-appliance company, they say. Midea is also scaling its original brand manufacturing, which could contribute to reasons for rerating its shares, they add. DBS raises its target price to 115.80 Hong Kong dollars from HK$100.90 for Midea's Hong Kong-listed shares, and to 105.30 yuan from 91.70 yuan for its Shenzhen-listed shares. DBS reiterates its buy rating. Shares rise 0.1% to HK$98.75 in Hong Kong and closed 0.3% lower at 86.39 yuan in Shenzhen. (megan.cheah@wsj.com)

0703 GMT - Manila Electric faces an earnings hit from the likely removal of system-loss charges from consumers' electricity bills, Maybank Securities' Germaine Guinto says in a research report. Philippines President Ferdinand Marcos Jr. called for removal of system-loss charges, which account for around 5% of a typical consumer electricity bill, at his State of the Nation address, the analyst notes. System loss is the power lost between generation sources and final customer billing. Under its base case, the brokerage assumes electricity distribution utility Manila Electric absorbs nontechnical system losses that would lead to an estimated annual earnings hit of 3 billion pesos-4 billion pesos from 2027. The brokerage cuts the stock's target price to 467.00 pesos from 605.00 pesos with an unchanged hold rating. Shares are 0.4% higher at 481.00 pesos. (ronnie.harui@wsj.com)

0655 GMT - Aeroports de Paris's share price doesn't reflect a postpandemic rebound in tourism flows through the group's travel hubs, Deutsche Bank says, lifting its rating on the stock to buy from hold. Regulatory clarity is meanwhile on the horizon, likely dispelling some investor fears, Deutsche's Harishankar Ramamoorthy says. Deutsche lifts its target price on the French group's stock to 130 euros from 110 euros. Shares closed at 112.50 euros on Tuesday. (joshua.kirby@wsj.com; @joshualeokirby)

0653 GMT - European banks are getting closer to the end of the current bull run, Citi analysts say. Banks continue to see upgrades to earnings per share, with 83% reporting second-quarter consensus pretax profit beats, Citi notes. However, upgrades have broadened to other sectors, which reduces their rarity value, the analysts add. Despite this, Citi remains overweight on European banks, and expects earnings upgrades to increasingly be driven by deposit and loan volumes rather than interest rates. "Yet faster organic & inorganic growth is likely to come at the expense of buybacks," Citi adds. Valuations still aren't expensive, the analysts say, but are no longer very cheap. Citi says its top picks in the sector are ABN AMRO Bank, NatWest Group and Societe Generale. (michael.hennessey@wsj.com)

0644 GMT - Nordic markets are seen opening slightly higher, with IG calling the OMXS30 up 0.1% at around 3322. The price of Brent crude oil has dropped to $86 a barrel after reports that Iran has resumed talks with Oman about opening the Strait of Hormuz, while Iranian media says Iran wants to resume negotiations with the U.S., SEB strategist Gustav Helgesson writes. Additionally, Trump announced that all mines in the strait have been cleared. "The market remains strikingly susceptible to rumors and media reports." U.S. stock markets closed higher and Asian equity indices are mostly rising on Wednesday. Equity futures point to a positive open in Europe and the U.S. The OMXS30 closed at 3318.26, OMXN40 at 2746.83 and OBX at 2024.19.