Global Market Update
Canadian Markets
Canada’s TSX moved higher, driven by rising prices for oil and gold, which bolstered the resource-heavy index. The OECD warned that tariffs could slow Canada’s economic growth by over 1%, citing disruptions to trade flows and increased costs due to trade barriers, particularly with the U.S.. BMO economists also predict that trade uncertainty could push Canada towards a recession, with potential job losses of up to 100,000, especially in export-driven sectors. These challenges could lead to a slowdown in business confidence, investment, and consumer spending, potentially prolonging economic stagnation if trade tensions persist.
American Markets
In the U.S., major stock markets advanced as well, with investors adopting a cautious optimism while awaiting the U.S. Federal Reserve’s upcoming interest rate decision. The central bank is widely expected to leave the benchmark overnight interest rate unchanged, maintaining the current range of 4.25%-4.50%. While the rate decision itself is unlikely to stir dramatic shifts, market attention will focus on any comments from policymakers regarding the broader economic impact, particularly in light of President Donald Trump’s recent trade and immigration policies. These policies are expected to influence both domestic growth and the global economy, and any insights from the Fed could signal future economic trends.
European Markets
European shares traded mixed, with German stocks dropping following a strong performance in yesterday’s trading, as investors are assessing the impact of the rising German debt associated with the new economic program.
In Sweden, the government adjusted its inflation forecast for 2025, raising its expectations to 2.5%, up from an earlier prediction of 2.0%. The government also projected inflation to decrease to 1.9% in 2026. Alongside this revision, Sweden slightly upgraded its growth forecast, signaling a modest recovery in the economy amid global economic uncertainty.
In Russia, weekly inflation hit its lowest level since the beginning of the year, reflecting a stabilization in prices after several months of volatility.
UK Markets
In the United Kingdom, stocks were marginally higher, with the Bank of England expected to keep interest rates on hold during its Thursday meeting. The central bank is facing significant challenges in forecasting the future trajectory of the economy, as it grapples with unpredictable headwinds and global economic pressures, including inflationary concerns and potential geopolitical risks. The Bank’s decision could provide further guidance on how the UK plans to navigate these uncertain times.
Corporate Stock News
Adobe Inc: Baird cut the target price on ADBE to $410 from $490, citing macro and marketing challenges.
Alimentation Couche-Tard Inc: The company missed Q3 revenue estimates due to weaker demand in its convenience stores and fuel businesses amid inflation. Quarterly revenue rose 6.5% to $20.90 billion but fell short of expectations. Adjusted net income of $641 million beat estimates. The company and Seven & i signed a non-disclosure agreement about potential store divestitures for antitrust conditions in case of a merger.
Amazon.com Inc: Amazon’s Zoox self-driving unit recalled 258 vehicles due to issues with the automated driving system that could cause hard braking. The issue was fixed with a software update.
Autodesk Inc: Activist investor Starboard Value plans a proxy fight, accusing Autodesk of “subpar” performance and misleading investors over an accounting issue last year.
BlackRock Inc, Microsoft Corp & Nvidia Inc: These companies, alongside Elon Musk’s xAI, are developing AI infrastructure. They aim to raise $30 billion in capital initially, potentially mobilizing up to $100 billion in total investment.
Boeing Co & United Airlines Holdings Inc: A United Airlines flight experienced navigation part failures, leading to injuries. The National Transportation Safety Board is investigating the incident.
Brighthouse Financial Inc: Raymond James upgraded its rating to strong buy from market perform, noting the potential for significant value unlock through a company sale.
Chipotle Mexican Grill Inc: Stifel cut the target price to $65 from $68, predicting softer comps for Q1.
Information Services Corp: CIBC reduced its target price to C$32.00 from C$35.00 due to uncertainty in Saskatchewan’s economy.
Morgan Stanley: The company plans to lay off around 2,000 employees to improve operational efficiency. The job cuts are not related to current market conditions.
Oracle Corp: Oracle signed a deal with Singapore’s defense technology arm to provide isolated cloud computing and AI services, marking its first such deal in Southeast Asia.
Orla Mining Ltd: CIBC increased its target price to C$13.75 from C$11.50, citing recent strength in gold prices.
Pfizer Inc: Pfizer sold its entire stake in Haleon for $3.24 billion, with BlackRock Investment Management becoming Haleon’s largest shareholder following the transaction.
Rio Tinto plc: Institutional Shareholder Services urged shareholders to vote in favor of reviewing the company’s dual-listed structure, supported by activist Palliser Capital.
Roku Inc: Guggenheim reduced the target price to $100 from $115, based on peer multiple contraction.
Tesla Inc: Tesla received approval in California for a robotaxi service, but still requires additional permits for a ride-hailing service. The company is also addressing recent violent attacks on its property.
Venture Global Inc: The Trump administration is set to grant conditional approval for Venture Global LNG to export natural gas from its Louisiana facility, which faced delays under the Biden administration.
Wells Fargo & Co: Investors are optimistic that Wells Fargo’s asset cap will be lifted after the company closed five regulatory actions in 2025, potentially leading to stronger earnings growth.
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.
