Market Analysis: April 1st, 2025

Canadian Markets

The Toronto Stock Exchange (TSX) rose on Tuesday, despite declines in oil and gold prices. Date released showed that Canadian consumer confidence in the economy has fallen to its lowest level in nearly five years.  Economists and analysts suggest that Canada’s economy may shrink in the second quarter of this year, but they are forecasting a recovery,  if tariffs are lifted by July 1st, which seems unlikely due to Trump’s economic model that relies on tariffs.

American Markets

In the U.S., markets rose, but with a sense of caution as they grappled with the uncertainty surrounding President Donald Trump’s planned announcement of reciprocal tariffs. These tariffs, if imposed, could have far-reaching effects on global trade, inflation, and corporate earnings. Investors were likely trying to price in potential impacts on businesses, especially those reliant on international trade or imports from certain countries. Despite this uncertainty, U.S. stocks managed to post gains, perhaps buoyed by strong earnings reports or other domestic economic factors. The ambiguity surrounding the tariffs likely kept traders on edge, contributing to market volatility.

European Markets

In Europe, markets rebounded from the previous session’s lows. However, the mood remained cautious as investors awaited clarity on the broader economic and political landscape, including potential tariff impacts.  The lingering uncertainties, especially related to U.S. policy and its potential global effects, kept investor sentiment muted.

UK markets also rose, even as inflation expectations continued to rise. While inflation can be a concern for consumers, it can also influence monetary policy decisions by the Bank of England (BoE). However, BoE’s Deputy Governor Ben Broadbent stated that while inflation expectations were rising, they were not yet at a level that warranted immediate concern, and he did not see “flashing red lights.”

The UK government appeared to take a measured approach to U.S. tariffs, with Prime Minister Keir Starmer reassuring that the UK would adopt a “calm” stance in response to any tariffs imposed by the U.S. This may have reassured investors that the UK government was focused on maintaining stability in its economic relations, even in the face of potentially disruptive trade policy changes.

Corporate Stock News

American International Group Inc: KBW raises target price on AIG to $98 from $90 after the company’s Investor Day showcased solid reserves, significant capital flexibility, and innovative AI capabilities.

Arm Holdings Plc: Arm initially pursued the acquisition of Alphawave, a UK-based semiconductor IP supplier, to enhance its AI processor capabilities but decided not to proceed with the deal after discussions.

AstraZeneca Plc, Eli Lilly and Co, GSK Plc & Johnson & Johnson: Drugmakers are lobbying U.S. President Trump to phase in tariffs on imported pharmaceutical products to reduce the impact and allow time to adjust manufacturing.

Becton Dickinson and Co, Danaher Corp & Thermo Fisher Scientific Inc: Becton Dickinson explores the potential sale of its life sciences unit, valued at up to $21.5 billion, with possible interest from Thermo Fisher and Danaher.

Boeing Co: Boeing slows 737 MAX production from 38 to 31 per month due to delays in wing system installations at its Renton, Washington factory.

Corcept Therapeutics Inc: Piper Sandler raises target price to $128 from $78 after the company’s ovarian cancer drug showed promise in a late-stage trial by delaying disease progression.

Duke Energy Corp: The Nuclear Regulatory Commission approves the 20-year license renewal for Duke Energy’s Oconee nuclear station in South Carolina, extending operation until 2053-54.

Eli Lilly and Co: Lilly sues two compounders, Strive Pharmacy and Empower Clinic Services, for selling unapproved drugs containing tirzepatide, the main ingredient in its weight-loss and diabetes medicines.

Expand Energy Corp: JPMorgan raises target price to $115 from $114, expecting solid growth for the company in Q1.

First Quantum Minerals Ltd: The company agrees to discontinue two arbitration proceedings with Panama over its Cobre Panama mine, potentially opening doors for negotiations to resume production at the mine.

Ford Motor Co, General Motors Co, Tesla Inc & Toyota Motor Corp: Tesla’s sales in France and Sweden drop year-over-year for the third consecutive month, contributing to its lowest quarterly sales in these countries since 2021.

Freeport-McMoRan Inc: The miner lowers its first-quarter gold sales forecast by 100,000 ounces due to shipment delays in Indonesia, while copper prices are expected to rise.

G Mining Ventures Corp: CIBC raises target price to C$22 from C$15 after the company reported better-than-expected Q4 results.

Goldman Sachs Inc: Institutional Shareholder Services advises shareholders to reject Goldman Sachs’ decision to grant $160 million in stock awards to its top executives, due to concerns about their structure and performance criteria.

Intel Corp: New CEO Lip-Bu Tan outlines a leaner version of Intel, focusing on closer collaboration with engineers and feedback from customers, as the company seeks to regain innovation momentum.

Johnson & Johnson: A U.S. bankruptcy judge rejects J&J’s $10 billion proposal to settle lawsuits related to its talc products causing ovarian cancer.

LifeSpeak Inc: RBC cuts target price to C$0.10 from C$0.20, citing the company’s precarious debt situation and lower revenue growth.

Pfizer Inc: The European Commission approves Pfizer’s RSV vaccine for adults at increased risk, a significant win over competitor GSK.

Rogers Communications Inc: Scotiabank cuts target price to C$50 from C$58, downgrades rating to “sector perform,” citing wireless subscriber growth slowdown.

Shell Plc: Shell completes the sale of its Singapore refinery assets to a Chandra Asri-Glencore joint venture, making Chandra Asri one of Southeast Asia’s largest petrochemical players.

SL Green Realty Corp: JPMorgan cuts target price to $70 from $80, citing structural headwinds from the work-from-home trend impacting demand for office space.

Vale SA: Vale forms a joint venture with Global Infrastructure Partners, selling 70% of its Brazilian renewable energy business, Alianca Energia, for $1 billion.

Virgin Atlantic: Demand for travel from the U.S. to Britain slows, echoing Delta Air Lines’ warning about the impact of U.S. economic uncertainty.

Westport Fuel Systems Inc: RBC cuts target price to $4 from $8 after the company announced the divestment of its Light Duty segment.

Warner Bros Discovery Inc: The company plans to add Anton Levy as an independent director to its board, expanding it to 14 members following pressure from Sessa Capital.