Global Market Update
Canadian Markets
Canada’s TSX plummeted following the release of tariff-related data, despite Canada itself not being directly impacted by the new levies. Canada managed to avoid any new duties. Goods that comply with the United States-Mexico-Canada Agreement (USMCA), the successor to NAFTA, will largely remain exempt from the reciprocal duties. However, certain sectors, including the auto industry, steel, and aluminum, still face heightened challenges due to Trump’s tariffs.
American Markets
American stocks were also hammered by the announcement of reciprocal tariffs that affected trading partners across the globe. Trump’s new tariffs, which include a 10% baseline duty on a wide range of imports, significantly increased fears of a global economic slowdown prompting a wave of selling in U.S. markets. Investors feared that the new measures would disrupt international trade and lead to a global recession, given that tariffs generally hurt both consumers and producers by increasing the costs of imported goods.
European Markets
European markets also closed lower as a direct result of the stronger-than-expected trade tariff announcements. The regional Stoxx 600 index fell around 2.7%, reflecting broad market losses across various sectors. Companies with global supply chains, particularly in the retail space, were hit hard. German sportswear giant Adidas saw its stock price drop by over 10%, a clear indication of how the global nature of trade is affecting multinational companies.
Shipping giant Maersk, which is widely regarded as a key barometer for global trade activity, also took a significant hit, with its shares down 9%. This drop further highlights the concerns over the impact of tariffs on international shipping and global trade flows. The Stoxx Autos index, which tracks automobile manufacturers, dropped by 3.9%, reflecting fears that Trump’s 25% tariffs on imported vehicles would directly impact the global automotive industry, particularly in Europe and Asia.
UK Markets
UK markets traded lower, although not as severely as in mainland Europe. The UK’s exposure to tariffs was mitigated somewhat by the fact that it would only face a 10% tariff compared to other regions, and the strength of the British pound also helped cushion the blow. However, the UK’s key export industries were still affected, particularly the Scotch whisky sector. The U.S. remains the most important overseas market for Scotch whisky, with exports valued at £971 million per year.
Corporate Stock News
Amgen Inc, Johnson & Johnson & Novo Nordisk A/S: Drugmaker stocks gained a temporary reprieve as U.S. President Trump spared them from tariffs, though analysts warned that tariffs could still be imposed on the sector in the future.
Amazon.com Inc: RBC cut Amazon’s target price to $235 from $265 due to challenges in integrating capacity expansion, increased competition in cloud, and a global macroeconomic slowdown. Separately, the U.S. National Highway Traffic Safety Administration closed an investigation into 258 Zoox vehicles after software updates were made, and Amazon criticized a book delivery fee imposed by France.
Apple Inc: AAPL shares fell after Trump’s tariff announcement, especially considering Apple’s significant manufacturing in China, with Citi estimating that the company could face a 9% negative impact to its gross margin if the tariffs are not exempted.
AstraZeneca Plc, GSK Plc & Novo Nordisk A/S: These pharmaceutical stocks rose temporarily after being spared from tariffs by President Trump, though concerns remain over potential future duties on the sector.
Best Buy Co Inc, Lululemon Athletica Inc, Target Corp & Walmart Inc: These retail giants suffered significant losses after Trump’s tariff announcements, with concerns over price increases due to the tariffs, particularly impacting companies like Lululemon and Target.
Bitfarms Ltd, Coinbase Global Inc, MARA Holdings Inc, MicroStrategy Inc & Riot Platforms Inc: U.S. crypto stocks declined after Trump’s tariff announcement, which triggered a sell-off in riskier assets, including crypto exchanges and bitcoin miners.
BP Plc: BP announced the closure of its hydrogen and LNG transport research team and its low-carbon mobility unit, marking its retreat from diversifying away from oil and gas.
Charles Schwab Corp: Raymond James raised its target price to $90 from $88, citing stronger-than-expected trading volumes.
Cigna Group, CVS Health Corp & UnitedHealth Group Inc: The Federal Trade Commission put a lawsuit on hold against these companies’ pharmacy-benefit managers over insulin pricing due to the firing of commissioners.
Converge Technology Solutions Corp: Canaccord Genuity raised its target price to C$6 from C$5.5 after Converge announced an amended acquisition agreement with H.I.G. Capital.
Ferrari NV: Ferrari confirmed that Trump’s new tariffs will apply to cars ordered months ago but still not delivered to the U.S., and prices could adjust accordingly.
Ford Motor Co: Ford plans to announce discounts across various models to cope with the impact of tariffs and will offer an employee pricing plan to all customers. Additionally, it recalled about 105,322 SUVs due to seatbelt issues.
Johnson & Johnson: The company indicated it would aggressively defend itself in ongoing lawsuits related to its talc products, signaling no interest in settling outside of bankruptcy.
Landstar System Inc: JPMorgan cut its target price to $147 from $177 after the company lowered its first-quarter guidance due to muted demand.
Lucid Group Inc & Rivian Automotive Inc: Lucid reported a 58% increase in first-quarter deliveries while Rivian saw a 36% drop. Lucid’s revenue estimate for Q1 was below Wall Street’s expectations.
Meta Platforms Inc: RBC cut its target price to $740 from $800, citing concerns about privacy issues, competition, and public perception, while CEO Mark Zuckerberg is lobbying to avoid an antitrust trial.
Nike Inc: Shares in Nike, Adidas, and Puma dropped after Trump imposed new tariffs, especially targeting key sourcing markets like Vietnam, Indonesia, and China.
Ncino Inc: Stephens cut its target price to $24 from $38 due to expected weaker international bookings and lower consumer demand.
Novo Nordisk A/S: The company announced that Camilla Sylvest would leave the company, with Ludovic Helfgott assuming responsibility for product and portfolio strategy.
Oracle Corp: Oracle reported a cybersecurity breach involving stolen client login credentials, marking its second data breach in a month.
Rogers Communications Inc: JPMorgan lowered its target price to C$53 from C$57, expecting soft first-quarter results due to weaker wireless and cable revenue.
Superior Plus Corp: CIBC raised its target price to C$9.5 from C$9 after the company unveiled medium-term financial targets and an updated plan for Certarus.
Tesla Inc: Tesla saw its sales in Germany fall 42.5% in March, with total sales for Q1 dropping 62.2% compared to the previous year.
Walmart Inc: Walmart’s shares, alongside other retailers like Target, dropped after Trump’s tariff announcements, with the possibility of higher prices on goods.
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