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

1136 GMT - ASML's falling market valuation relative to its earnings isn't justified, Bank of America analysts write. Shares in the Dutch maker of semiconductor-manufacturing equipment trade at a 27% discount to the historical average, despite the company's sector-leading earnings-per-share growth, the analysts say. The gap between ASML's share price performance and its growth forecasts is "difficult to justify," they say. The company will expand its gross margin by more than any of its peers. Moreover, memory chip-makers are increasingly using ASML's lithography machines, undermining bearish analysts' views that demand would fall, the analysts add. Shares are down 13% for the quarter, though they remain up more than 60% for the year. The stock falls 0.2%. (josephmichael.stonor@wsj.com)

1100 GMT - Palm oil fell during the Asian trading session. Sentiment was likely weighed by overnight weakness in rival soy oil, profit taking following a recent rally and concerns over softer August export demand, Kenanga Futures write in a note. AmSpec data showed palm oil exports fell 11% on month for the Aug. 1-25 period. However, expectations of lower palm oil production and ongoing supply risks could help cushion further downside, it adds. The Bursa Malaysia Derivatives contract for November delivery fell 93 ringgit to 4,853 ringgit a ton. (kimberley.kao@wsj.com)

1017 GMT - Pony AI's first 2,000 robotaxi vehicles will be deployed mainly in Europe with a few in the Middle East, Citi analysts cite management as saying. The first batch will be exported from China, with a potential switch to European local brands in the future, with Pony earning per-mile revenue from the testing phase onward, they say. The management maintains a target of 3,500 unit this year and disclosed an internal target of 10,000 units for next year, with overseas accounting for 30% to 40%, depending on regulatory approval cadence, Citi adds. Management believes stricter entry-permit standards favor leading players with strong safety track records, they say. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0947 GMT - The Canadian dollar falls to a one-week low against the U.S. dollar and a three-week low against the euro amid a trade spat between the U.S. and Canada. Trade talks collapsed and the U.S. imposed stiff new tariffs on Canadian goods last weekend, while Canada proposed retaliatory tariffs on U.S. goods. "The Canadian dollar weakened after Prime Minister Carney matched newly imposed U.S. tariffs with dollar-for-dollar retaliatory duties while rolling out emergency support for affected domestic industries," Tickmill Group's Patrick Munnelly says in a note. The U.S.-Canada trade dispute "remains a key tail risk" for the Canadian dollar. The U.S. dollar rose to a high of 1.3869 Canadian dollars, while the euro reached 1.6186 Canadian dollars, LSEG data show. (jessica.fleetham@wsj.com)

0934 GMT - Electrolux is undergoing a deep reorganization, and efficiency gains should drive the profitability recovery in 2026-2028, AlphaValue analyst Helene Coumes writes. The Swedish appliance maker operates in a volatile and uncertain consumer environment across all its geographies, and earnings this year will be impacted by significant restructuring charges, Coumes says. AlphaValue no longer assumes a dividend payment for 2026. However, the share price has rebounded sharply recently, and the North American partnership with Midea remains an important catalyst, which should become clearer over the coming quarters. AlphaValue lowers its share target price to 38.5 Swedish kronor from 43.8 kronor and keeps its buy rating. Shares fall 0.6% to 29.49 kronor. (dominic.chopping@wsj.com)

0921 GMT - Stock markets will continue to rise due to resilient economic growth and accelerating adoption of artificial intelligence, UBS strategist Matthew Carter writes. Geopolitical concerns and AI jitters shouldn't put investors off stocks, Carter says. A stronger-than-expected earnings season added to the strategist's bullish view on stocks. Though AI-related equities should underpin stock market gains, broader earnings growth means returns will come from other corners of the market, including industrials and financials, Carter says. UBS upgrades its earnings growth expectations for the S&P 500 from 20% to 25% for 2026, and to around 15% from around 10% for the Eurozone. (josephmichael.stonor@wsj.com)

0838 GMT - Shares of European semiconductor companies are mixed as investors await Nvidia's second-quarter results after the U.S. market close to gauge appetite for artificial-intelligence chips. Dutch semiconductor-equipment maker ASML Holding and smaller rival ASM International are down 0.6% and 0.4%, respectively. BE Semiconductor Industries, the Dutch supplier of semiconductor assembly equipment, is down 0.7%. German chip maker Infineon Technologies is up 0.9%. STMicroelectronics shares are up 1%. Meanwhile, the E-mini Nasdaq 100 futures contract is down 0.3%, pointing to a weak opening for tech stocks in the U.S. (mauro.orru@wsj.com)

0819 GMT - SAP's slower-than-expected rollout of agentic AI is limiting monetization opportunities and removing a potential catalyst to boost the stock, UBS analysts write in a note to clients. They downgrade their rating on the German business-software group's stock to neutral from buy. "The lack of progress in delivering its own AI innovation into customers' hands is disappointing," the analysts say. While earnings growth should remain healthy through 2028, they say a deceleration in SAP's cloud backlog growth in the second half of 2026 is highly likely and would hold back the stock. SAP shares trade 3.8% lower at 178.36 euros. (mauro.orru@wsj.com)

0805 GMT - New York gold futures trade broadly flat at $4,686 a troy ounce in morning European trade. Traders are waiting for U.S. Federal Reserve Chair Kevin Warsh to speak at the Jackson Hole gathering on Friday. The market wants to know how the Fed will respond to various inflation scenarios, ANZ analysts write. Higher interest rates weigh on non-yielding assets like gold. (adam.whittaker@wsj.com)

0802 GMT - S&U is likely to report annual profit weighted more heavily to the second half of the year, supported by an uptick in collections at its Advantage Finance business, continued asset growth and high credit quality at subsidiary Aspen Bridging, Berenberg analysts say. Berenberg leaves its estimates for the full year unchanged after the lender's second-quarter trading update, and says it is awaiting outlook details at the interim results in September. Slower repayments at Aspen reflect a shift toward offering longer-term loans to customers rather than a decline in credit quality. This means fee income will be spread over a longer period, which will impact short-term profit. Berenberg maintains a buy recommendation on the stock with a 23.10 pounds target. Shares are down 0.5% at 19.60 pounds. (michael.hennessey@wsj.com)

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.