Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals 
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
Thailand Inflation Remains Negative for 10th Straight Month in January 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
Australia’s December Trade Surplus Expands but Falls Short of Expectations 
Asian Markets Slip as AI Spending Fears Shake Tech, Wall Street Futures Rebound 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
European oil and gas equities are entering 2026 on a more cautious footing as J.P. Morgan’s latest EU Oils Outlook highlights tightening valuations and growing concerns over a projected global oil oversupply. Despite Brent crude slipping 7% in the second half of 2025, EU oil stocks managed to outperform the broader European market by 6%, creating what the brokerage calls a “significant positive decoupling.”
Analysts now view sector valuations as “full,” noting an estimated 7.8% free cash flow yield for 2026 based on $62/bbl Brent—considered rich compared with long-term norms. Consensus forward P/E ratios around 10.3x suggest the sector trades in line with its 10-year average discount as forward curves point to Brent stabilizing near $60/bbl. J.P. Morgan’s commodities research, however, expects Brent to fall below that level through 2026 and 2027 as oversupply builds, putting further pressure on earnings expectations.
Only Shell and Repsol retain “overweight” ratings. Shell, the bank’s top pick, is supported by strong free-cash-flow generation, a projected 10.1% 2026 cash yield, and resilient downstream exposure that hedges against lower oil prices. Repsol benefits from high diesel leverage, a 6.1x 2026 P/E, and a robust 6.5% dividend yield as refining continues to deliver sizable operating profits.
Several majors face downgrades: TotalEnergies is cut to “neutral” due to limited valuation upside and slower free-cash-flow growth from its Integrated Power segment, while Eni moves to “underweight” as rising gearing and sensitivity to upstream prices weigh on the outlook. BP, Galp, and Neste remain “neutral,” whereas Equinor and OMV are rated “underweight.”
Across the sector, average dividend yield stands at 5.7%, while overall upside potential remains below 5%. With Europe structurally short on diesel and still relying on imports for about one-fifth of demand, elevated diesel margins continue to provide a crucial hedge for downstream-weighted companies.
