Global Market Update
Canadian Markets
On Thursday, Canada’s TSX rose moderately despite oil continuing to fall, and a notable setback from Sunlife’s earnings miss. The insurance company reported disappointing results, causing its stock to fall sharply. Sunlife’s earnings miss has raised concerns within the sector, although broader market sentiment remained relatively positive.
Meanwhile, CIBC’s chief economist, Avery Shenfeld, warned of significant economic consequences from potential U.S. tariffs. His comments came amid rising fears over how tariffs could affect both the U.S. and global economies. Though U.S. stocks experienced gains, much of this was tied to President Trump’s recent decision to sign a memo on reciprocal trade. This memo instructs federal agencies to assess how to adjust U.S. tariff rates in response to duties and economic barriers imposed by other nations. Notably, Trump stopped short of immediately imposing these tariffs, a move that left foreign capitals uncertain about the next steps.
American Markets
American stocks moved higher across the board, even though another inflation report showed stronger-than-expected numbers. Wholesale prices surged by 0.4% in January, and the December figure was revised upwards. Although producer-price inflation remains elevated, economists are paying closer attention to the categories that influence the Federal Reserve’s preferred inflation measure: the personal-consumption-expenditures (PCE) price index. The latest data suggests that the PCE might be a bit lower than feared, which could affect future Fed policy decisions.
There was more concerning news on the consumer front, with U.S. consumer debt delinquency rates reaching their highest levels in nearly five years. This could indicate rising financial strain for U.S. consumers and potentially signal a broader economic slowdown. Despite the mixed signals, the U.S. dollar index remained relatively flat, reflecting the uncertainty surrounding the country’s economic trajectory.
European Markets
European shares reached a record high, driven by strong earnings reports from some of the continent’s most influential companies, Nestlé and Siemens. These companies’ solid financial performances helped lift investor sentiment across European markets, pushing stock indexes to new peaks.
UK markets fell half a percent as consumer giants Unilever and British American Tobacco weighed down the export-heavy FTSE 100 index.
Unilever, a key player in the index, saw a significant drop of 5.6%, marking its worst session in over three years. The decline followed a bleak earnings outlook and news that the company would list its ice cream spin-off, including Ben & Jerry’s, in Amsterdam rather than London or New York.
Top Company News
- Alpha Modus saw a significant increase in stock price due to plans for expanding AI in the retail sector.
- Baird initiated coverage of GE Vernova with an “Outperform” rating, citing strong growth driven by energy demand.
- BTIG downgraded General Dynamics, citing issues with Gulfstream’s supply chain and certification delays.
- Britain is seeking an exemption from the U.S. for tariffs on steel and aluminium products.
- CEVA reported earnings in line with expectations, while revenue exceeded estimates.
- Crocs posted better-than-expected fourth-quarter income, leading to a surge in shares.
- CyberArk saw an uptick in stock price after strong Q4 results and positive guidance.
- Deere & Co. reported a 50% drop in net income, citing ongoing economic challenges.
- Molson Coors’ stock rose after surpassing Q4 earnings estimates.
- NVIDIA’s Blackwell ramp-up is seen as modest in the near term but expected to see significant growth in the second half of the year.
- Piper Sandler lowered Olin’s rating and price target due to a weaker recovery outlook.
- Porsche announced plans to cut 1,900 jobs amid weak demand for electric vehicles.
- SharkNinja saw a sharp rise in stock after posting strong Q4 results.
- Steven Madden plans to acquire UK-based luxury shoe brand Kurt Geiger for $360 million.
- SailPoint IPO opened at $23 per share, meeting initial pricing expectations.
- Tesla and Nvidia led the market in terms of market cap growth on Thursday.
- Wendy’s stock rose as the company exceeded Q4 earnings and revenue expectations.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
