Global Markets-Mar 3rd
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Canadian Markets
Canada’s TSX index declined as investors braced for the American President’s tariffs which are coming into effect tomorrow, while energy and technology stocks were leading the charge lower. This policy move raised concerns about potential trade disruptions and the negative effect on international supply chains, which could directly impact Canadian businesses. Many economists are now predicting that Canada will slip into a recession as a result of the tariffs, in which the economy is already at a point of concern.
American Markets
American stocks also dropped across the board as U.S. government bond yields fell to multi-month lows on Monday, following mixed results from a manufacturing survey that heightened investor concerns about slowing economic growth. Nvidia’s stock lead the Nasdaq lower, as investors also processed the implications of the proposed tariffs. The potential for increased tariffs on a wide range of goods raised the specter of higher costs for businesses and consumers, as well as the risk of retaliatory measures from other countries. This led to a sell-off, particularly in sectors that rely heavily on international trade, such as manufacturing and technology. Companies with significant foreign revenue or those involved in global supply chains experienced particular volatility. Investor uncertainty was compounded by concerns over how tariffs could affect the broader economy, potentially slowing growth and disrupting corporate earnings expectations.
European Markets
European shares finished the new week higher, extending gains to trade near record highs. This boost was largely driven by a significant development in the defense sector. European leaders came to an agreement to increase military spending across the continent, signaling stronger investment in defense initiatives, with the current geo-political backdrop being the motivation. In addition, the positive movement in European shares also reflected broader market optimism driven by economic recovery prospects and efforts by the European Central Bank to stimulate growth through monetary policy measures.
UK stocks were higher but more subdued than their European counterparts as data released showed that China’s economic slowdown was impairing the performance of UK companies. Strength again came from the defense sector which say BAE systems and Rolls-Royce log strong gains.
Corporate Stock News
Allegro Microsystems Inc & ON Semiconductor Corp: Allegro Microsystems is reportedly drawing takeover interest from larger competitor ON Semiconductor, with the two companies in talks, according to sources. Allegro has a market valuation of $4.11 billion, while Onsemi is valued at $19.83 billion.
Amazon.com Inc: Amazon is using artificial intelligence to reduce flood risks in Aragon, Spain, where it is building data centers. AWS will invest 17.2 million euros to modernize infrastructure and optimize agricultural water use to help prevent floods in the region.
Caterpillar Inc & General Dynamics Corp: The U.S. State Department approved nearly $3 billion worth of weapon sales to Israel, including bombs from General Dynamics and bulldozers from Caterpillar. Deliveries may start as early as 2026, with some items possibly being procured immediately from U.S. stock.
Citigroup Inc & JPMorgan Chase & Co: Mars is preparing to sell bonds worth $25 billion to $30 billion to finance its $40 billion takeover of Pringles maker Kellanova. Banks, including Citigroup and JPMorgan, are preparing to market the bond sale next week.
ING Groep NV: ING agreed to buy a 17.6% stake in Van Lanschot Kempen, increasing its total stake to 20.3%. The acquisition, valued at 347 million euros, is a strategic move to enhance ING’s position in private banking and wealth management.
MNTN: MNTN, a connected TV advertising platform with Ryan Reynolds as its chief creative officer, filed for an initial public offering. The company grew its revenue by 28% to $225.6 million in the previous year.
Shell PLC: Shell is considering selling its chemicals assets in Europe and the U.S. The company has hired Morgan Stanley to conduct a strategic review, with potential buyers possibly including private equity firms and Middle Eastern entities.
Reddit Inc: Alexis Ohanian, co-founder of Reddit, joined Frank McCourt’s bid to acquire TikTok’s U.S. operations. Ohanian will serve as a strategic adviser, helping promote the Project Liberty bid focused on user-controlled data privacy.
Spirit AeroSystems Holdings Inc: Spirit AeroSystems reported a $577 million Q4 operating loss and expects significant reductions in revenue and cash flows in 2025 due to changes in Boeing production. The company also reported a $2.1 billion net loss for 2024 and will need additional funding to sustain operations.
Stellantis NV: Stellantis nominated Daniel Ramot and Alice Schroeder as new board members. Ramot is the co-founder and CEO of Via, while Schroeder is a former managing director at Morgan Stanley. The board changes are part of the company’s ongoing leadership overhaul.
Verizon Communications Inc: U.S. lawmakers raised concerns about SpaceX CEO Elon Musk’s potential interference in a $2.4 billion FAA telecommunications contract awarded to Verizon. The controversy centers around Musk’s influence over U.S. government contracts.
Welltower Inc: Welltower announced it would acquire Amica Senior Lifestyles’ portfolio from the Ontario Teachers’ Pension Plan for C$4.6 billion. The acquisition includes 38 luxury seniors-housing communities and 9 entitled development parcels, and is expected to close in Q4 2025.
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