Financial Services Roundup: Market Talk

The latest Market Talks covering Financial Services. Exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

1054 ET - Weak jobs data, high gas prices and crossborder trade friction haven't slowed down motor-vehicle sales in Canada, according to October data from DesRosiers Automotive Consultants. The firm reports car sales in October rose for a fifth straight month on a 12-month basis, up 1.8%. DesRosiers says the October performance is just shy of the sales posted in October of 2017 - or highest total on record for that particular month. On a seasonally-adjusted, annualized basis, sales in Canada jumped to just under 2 million, or the highest since February "and a true measure of market strength." The Bank of Canada raised its policy rate last week to 2.5%, in part due to surprising resilience among households, officials said. (paul.vieira@wsj.com; @paulvieira)

0857 ET - Kraft Heinz says it inked an agreement to sell its North America coffee business to an affiliate of private-equity firm One Rock Capital Partners, in a deal with an enterprise value of $650 million. Kraft said it would retain a 30% equity stake in the business, which includes brands like Maxwell House, Gevalia and Nabob. The deal marks Kraft's first since Chief Executive Steve Cahillane took the helm of the company in January. (kelly.cloonan@wsj.com)

0737 ET - U.K. bank stocks are more attractive now than they were after half-year results, Jefferies' Jonathan Pierce writes. Jefferies notes that its own forecasts are little changed after third-quarter results, but share prices for the sector are down around 15%. There isn't a big structural problem around softer net interest income guidance, the analyst says, despite the market reaction. Consensus estimates still appear a little too high, but are in a better place than previously, Jefferies adds. Clarity on bank taxes after last week's U.K. budget also adds to the positive picture, he says. Jefferies maintains buy recommendations on Barclays, Lloyds and NatWest shares. (michael.hennessey@wsj.com)

0721 ET - The Democratic sweep shuffles control of the legislative branch, but the economic impact, which is fundamental for the U.S. housing market, is far less clear, a note from Realtor.com says. Many Democrats have been vocal critics of the conflict in the Middle East, which has sparked inflationary oil supply shortages, says Jake Krimmel, senior U.S. economist. "A resolution would likely improve oil supply, helping to ease price pressures and potentially providing relief for mortgage rates." However, uncertainty remains, he adds. Jumpstarting the housing market relies on a calmer geopolitical environment and bond market in the short run, along with more housing supply and dynamic labor market in the long run.(Jessica.coacci@wsj.com)

0517 ET - The Democrats' victory in U.S. midterms does not mean that the party will be able to implement its program, Edmond de Rothschild Asset Management's Nabil Milali says in a vote. President Trump retains a veto, which is likely to block any legislation with which he disagrees, the portfolio manager says. While President Trump has indicated his willingness to collaborate with the Democrats, "the political reality and the pressure his party is bound to exert should dissuade him from granting any major victories to his political opponents ahead of the 2028 presidential election," he says. Institutional deadlock is likely with no major progress on fiscal policy which should limit the widening of the budget deficit, mitigating one of the factors exerting upward pressure on U.S. Treasury yields. (emese.bartha@wsj.com)

0423 ET - Rising U.S. policy uncertainty strengthens the case for global investment diversification, Mathieu Racheter, head of equity strategy research at Julius Baer, writes in a note. The policy implications of the Democratic victory in the midterms are more favorable for clean energy and more challenging for artificial intelligence and information technology, banks, and oil & gas, Racheter says. However, President Trump's veto power limits the scope for legislative changes that would materially alter the near-term earnings outlook, Racheter adds. The greater challenge lies in valuations, as uncertainty over future taxes and regulation could lead investors to demand a higher risk premium for U.S. equities, Racheter says. The uncertainty may grow in late 2027 or early 2028, when the presidential campaign could bring a broader policy shift into focus, Racheter says. (kimberley.kao@wsj.com)

0415 ET - The key takeaway of Democrats winning the Senate is a check to Trump's inability to nominate key members in institutions like the Supreme Court or the Fed, says Samy Chaar at Lombard Odier. "Fed independence is won, in a way. That's an uncertainty that you can remove," the chief economist says. "Checks and balances, the independence of agencies, the Fed, nominations at the Supreme Court matter a lot, right?" Fiscal policy is likely to stay on sort of autopilot. A lot of spending was brought forward, so Lombard sees fiscal policy from now on as being mildly contractionary. Chaar sees room for compromise on issues like government funding, increasing the debt ceiling and AI regulation. Trade policy and tariffs, meanwhile, remain in the hands of the president. (fabiana.negrinochoa@wsj.com)

0404 ET - The U.S. midterm elections is unlikely to materially alter its economic outlook, says T. Rowe Price's chief U.S. economist Blerina Uruci. The key growth drivers in 2027 are likely to be the energy shock, the Fed's response to inflation risks and investment in AI, which are all largely outside Congress's control, Uruci says. The election outcome is likely to have a greater impact on the composition and timing of fiscal policy rather than impacting the overall deficit size, Uruci adds. "While a divided government could lead to marginally greater fiscal restraint, the risk of political brinkmanship around funding deadlines and the debt ceiling increases substantially, as does policy uncertainty," Uruci says. (kimberley.kao@wsj.com)

0336 ET - European banks opened higher Wednesday as investors weighed the impact of the Democrats gaining control of both the U.S. Senate and House. A Democrats-controlled Congress creates a check on the executive branch, and could lead to more bipartisan collaboration, analysts say. Bank stocks are higher across Europe with the Stoxx Europe 600 Banks index up 2.2%. Deutsche Bank climbs 3.0%, Banco Santander rises 2.85% and Intesa gains 2.5%. In the U.K., HSBC is up 2.8% and Barclays advances 1.8%. (michael.hennessey@wsj.com)

0327 ET - A decisive Democrat victory during the U.S. elections helps with stability, but the scale of victory will give markets plenty to digest particularly with AI, ING strategists say in a note. There is little risk of the result being challenged and avoids a gridlock situation with Congress split between Democrats and Republicans, which will help market sentiment, ING says. However, current AI jitters in equity markets brings attention to data centers, with the Democrats taking a firmer stance against the free market approach given to the AI sector by the government, ING adds. Stricter policy could start forming a headwind for growth, which currently relies on the AI boom, though it is unlikely to materialize significantly in the near term, ING writes. (kimberley.kao@wsj.com)

0303 ET - A divided U.S. government can support Treasurys by limiting further fiscal expansion, Vontobel's Andrew Jackson says in a note as Republicans lost their majority in both chambers. "But blocking new spending is not the same as reducing the existing deficit," the head of investments says. Persistent deficits and heavy Treasury issuance could therefore limit how far long-term yields fall, even with a stronger congressional check on the administration, he says. Inflation and Federal Reserve policy are likely to matter more for bonds than the election results, while any renewed rise in energy prices could complicate the outlook, Jackson says. (emese.bartha@wsj.com)

0257 ET - AIB Group's third-quarter net interest income beat was "reassuringly straightforward," Barclays' Aman Rakkar writes. The Irish bank's beat and 2026 guidance raise bode well for 2027 net interest income, which is likely to be helped by further rate rises and balance sheet growth, the analyst says. Underlying fee income was slightly soft in the third quarter, Barclays notes. However, investors are likely to welcome the stronger net interest income print and outlook, Rakkar says. (michael.hennessey@wsj.com)

(END) Dow Jones Newswires

November 04, 2026 12:20 ET (17:20 GMT)