Global Market Update
Canadian Markets
Canada’s TSX (Toronto Stock Exchange) saw a slight decline in Tuesday’s trading after escalating tensions between Canada and the U.S. The U.S. government announced its intention to increase tariffs on Canadian goods, as the decision followed tough rhetoric from Canada’s newly soon to be Prime Minister, Mark Carney, and Doug Ford’s export tax on electricity. This has furthered the diplomatic rift. Carney’s comments about U.S. economic policies and his stance on trade have been seen as provocative, leading to a less-than-friendly atmosphere between the two nations. This increase in tariffs could have significant implications for Canada’s economy, as it would affect cross-border trade, particularly in sectors such as automotive, agricultural products, and energy.
American Markets
U.S. stocks traded mostly in negative territory, with the Nasdaq serving as the exception. The Nasdaq, which is heavily weighted toward technology stocks, managed to eke out a positive performance, bolstered by a rebound in major tech stocks and traders look for value. However, broader U.S. stock indices, including the S&P 500 and Dow Jones Industrial Average, struggled as investors remained cautious about the ongoing geopolitical tensions, concerns over rising tariffs, and the potential economic consequences of these trade policies.
European Markets
In Europe, shares also traded mostly in negative territory. Spain’s economy is expected to grow by 2.7% this year, which is relatively strong compared to other European countries. However, there are growing concerns that trade tariffs—especially those introduced by the U.S. against various European nations—could slow down the growth of European economies. The International Monetary Fund (IMF) issued a warning that the EU economy could face significant risks from reduced global trade, stemming from rising protectionism, especially from the U.S. With the potential for lower trade volumes due to tariffs, European countries may find themselves struggling to maintain economic growth.
UK Markets
The FTSE 100, the benchmark index for London’s blue-chip stocks, also slipped on Tuesday, continuing a downward trend. After a brief recovery from a selloff earlier in the week, the index was unable to sustain its gains. The pound’s strength against other currencies likely contributed to the underperformance of exporters, which make up a significant portion of the FTSE 100.
The travel and leisure sector also faced declines, as consumer confidence appeared to be wavering due to uncertainty surrounding the economic effects, as well as concerns about potential travel disruptions linked to geopolitical tensions. Despite this, the mid-cap index managed to regain some ground, with smaller companies outperforming their larger counterparts.
Corporate Stock News
AT&T Inc: AT&T forecasted first-quarter adjusted profit in line with analysts’ estimates, signaling steady demand for its discounted premium plans combining 5G mobile with high-speed fiber data. The company reaffirmed its annual adjusted profit forecast in the range of $1.97 to $2.07 per share.
Bank of America Corp: The bank eliminated some investment banking roles, including junior bankers in New York. This follows recent cuts in its investment banking and global markets divisions globally as part of an annual performance review.
Barclays: Chairman Nigel Higgins believed the bank’s former CEO Jes Staley’s ties with the late financier Jeffrey Epstein did not warrant a board discussion in 2019, according to court documents.
Boeing Co: U.S. Transportation Secretary Sean Duffy will visit Boeing’s factory in Renton, Washington, to ensure the company is maintaining safety standards six years after a deadly 737 MAX crash. This follows increased oversight of Boeing after recent incidents.
Coinbase Global Inc: The company registered with India’s Financial Intelligence Unit to offer crypto trading services in the country. It plans to launch its retail services later this year, though no specific timeline has been disclosed.
Delta Air Lines Inc: The company slashed its first-quarter profit estimates by half, citing weakened demand due to U.S. economic uncertainty. Delta also lowered its revenue growth expectations for the quarter.
Eaton Corporation PLC: The power management company announced it will acquire Fibrebond Corporation in a $1.4 billion deal to expand its reach into the data center market. The transaction is expected to close in the third quarter of 2025.
Hinge Health Inc: The company filed for its long-sought initial public offering (IPO) after reporting a 33.4% increase in revenue for 2024 and a reduction in net losses. It will list on the New York Stock Exchange under the symbol “HNGE.”
Illumina Inc: The company lowered its annual forecast after China announced a ban on imports of its genetic sequencing instruments. The company expects a 2025 adjusted profit of around $4.50 per share.
Kohl’s Corp: The company forecast a larger drop in annual comparable sales than expected, projecting a 4% to 6% decline in 2025 same-store sales, putting pressure on new CEO Ashley Buchanan as he works to turn the company around.
Lululemon Athletica Inc and Nike Inc: A New York federal jury awarded Nike $355,450 after ruling that Lululemon’s athletic shoes violated Nike’s patent rights. However, Lululemon plans to appeal the ruling.
Meta Platforms Inc: The company is testing its first in-house chip for training artificial intelligence systems. If successful, it plans to ramp up production for wide-scale use, reducing reliance on external suppliers like Nvidia.
Oracle Corp: CEO Safra Catz gave a strong growth outlook for fiscal 2026 and 2027, forecasting revenue growth of 15% and 20%, respectively, driven by the rising demand for AI computing. However, the company’s quarterly revenue slightly missed analysts’ estimates.
Southwest Airlines Co: The airline cut its unit revenue growth forecast for the first quarter due to concerns over discretionary spending and tariff pressures. The company also plans to charge some customers for checked bags, ending a unique free policy.
TXNM Energy Inc: The company is exploring a sale after receiving takeover interest. TXNM provides electricity to about 800,000 homes and businesses in New Mexico and Texas.
VinFast Auto Ltd: The Vietnamese electric vehicle maker plans to install up to 100,000 charging stations across Indonesia and set up a production facility with an annual capacity of 50,000 units. The company is also considering investments in renewable energy projects.
Walt Disney Co: A California federal jury ruled that Disney’s “Moana” did not infringe on an artist’s copyrights, rejecting claims that the company had copied material for the movie “Bucky.” The artist had sought $100 million in damages.
Xpeng Inc: The Chinese electric vehicle maker is considering large investments of up to $13.80 billion in humanoid robots, signaling a long-term commitment to the technology.
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