Global Market Update
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Canadian Markets
Canada’s main stock index rose, largely driven by the uptick in oil and gold prices. These commodities, which are central to Canada’s resource-driven economy, saw a surge in value, helping to bolster investor sentiment. Oil prices increased due to expectations of tighter supplies and higher demand, while gold benefited from a combination of geopolitical risks and economic uncertainty, leading to a rise in its safe-haven appeal.
In Canada, February housing sales dropped dramatically, sparking concerns about the economic outlook. This decline in sales was primarily attributed to fears around potential tariffs, which have dampened consumer confidence and created uncertainty within the housing market. This downturn reflects broader anxieties regarding how trade policies might impact both domestic and international markets.
American Markets
U.S. stocks were mixed, with downbeat economic data and comments from Treasury Secretary Scott Bessent adding to mounting concerns over the U.S. economy. Bessent’s remarks highlighted the growing possibility of a recession, stating that there are “no guarantees” the country will avoid an economic downturn. His comments came ahead of the Federal Reserve’s policy meeting this week, where the central bank is widely expected to maintain current interest rates. Despite these economic fears, retail sales saw a modest 0.2% increase in the most recent month, falling short of expectations for a 0.6% rise. Furthermore, the previous month’s retail sales data was revised downward from a 0.9% drop to a more significant 1.2% fall, reinforcing concerns about the health of consumer spending.
European Markets
In Europe, shares saw a lift thanks to gains in energy and healthcare stocks, providing a boost to the broader market. This improvement coincided with a heightened focus on Germany’s debt reform plans, as Europe grapples with long-term fiscal stability in the wake of various economic challenges.
The UK stock market rose despite ongoing challenges, as UK economic growth forecasts were revised downward, largely due to fears surrounding tariffs and their potential impact on trade, which further complicates the country’s economic prospects.. In addition, the UK economy unexpectedly contracted by 0.1% in January, adding another layer of uncertainty to the economic outlook.
Outlook
As all eyes turn to the Federal Reserve’s upcoming rate decision, investors are awaiting clearer signals on the U.S. central bank’s stance regarding inflation and economic growth. The decision on interest rates, due Wednesday, is expected to provide guidance on the Fed’s approach moving forward, amid growing fears that rising rates could further hinder economic activity and consumer confidence. With global markets navigating a delicate balance of rising commodities prices, mixed economic data, and the looming threat of a recession, the outlook remains uncertain as major economies face critical junctures.
Corporate Stock News
Aemetis Inc
Ascendiant Capital Markets raised the target price to $19 from $18, believing the company is near an inflection point to significantly improve its operations and outlook.
AstraZeneca PLC
AstraZeneca agreed to acquire biotechnology company EsoBiotec for up to $1 billion to accelerate its cell therapy capabilities, particularly for cancer and autoimmune diseases. The transaction is expected to close in Q2 2025.
Berkshire Hathaway Inc
Berkshire Hathaway raised its holdings in five Japanese trading houses, including Mitsui & Co, Mitsubishi Corp, Sumitomo Corp, Itochu, and Marubeni, increasing its stake in Mitsui & Co to 9.82% from 8.09%.
Carlyle Group Inc
Carlyle’s deal to buy assets from Energean for up to $945 million is at risk of collapsing due to pending regulatory approvals, with Energean stating that conditions may not be satisfied by the March 20 deadline.
Caseys General Stores Inc
JPMorgan reduced the target price to $333 from $338, citing rising cheese costs that will likely hurt Prepared Foods margins.
ExxonMobil Corp
ExxonMobil’s Australian unit approved a $221.31 million project in the Gippsland Basin to develop gas resources by drilling five new wells, extending gas production in the Bass Strait beyond 2030.
General Electric Co
General Electric secured a contract valued up to $5 billion from the U.S. Air Force for F110-GE-129 engines, which power F-15 and F-16 fighter aircraft.
Intel Corp
Intel’s incoming CEO Lip-Bu Tan plans significant changes to its chip manufacturing and artificial intelligence strategies, focusing on improving performance at Intel Foundry and expanding into areas like AI servers, software, robotics, and quantum computing.
Kohl’s Corp
Kohl’s expanded its supplier diversity program and changed the title of its chief DEI officer to Chief Inclusion and Belonging Officer in response to changing political pressures on diversity practices.
NFI Group Inc
CIBC cut the target price to C$20.00 from C$21.00, citing persisting supply chain uncertainty.
Novartis AG
Novartis is closely monitoring the U.S.’s proposed reciprocal tariff policy, which will unfold in April, as it may impact its operations. The company is setting up a research hub in Japan to expand clinical trials.
Norwegian Cruise Line Holdings Ltd
JPMorgan upgraded its rating to overweight from neutral, citing favorable demographics and high-end consumer targeting by the company’s brands.
Nvidia Corp
Nvidia is expected to reveal details about its Vera Rubin chip system at its annual software developer conference. CEO Jensen Huang will discuss the company’s dominance in the chip market and its expanding presence in AI, robotics, and quantum computing.
Rubrik Inc
CIBC raised the target price to $85.00 from $80.00, following the company’s better-than-expected fourth-quarter results.
Smithfield Foods Inc & Tyson Foods Inc
China’s expiration of export registrations for U.S. meat plants under the 2020 “Phase 1” trade deal threatens U.S. exports and may result in losses of about $5 billion due to ongoing tariff standoffs.
Sutro Biopharma Inc
Oppenheimer downgraded the rating to perform from outperform, citing a lack of near-term catalysts and uncertainty around Luvelta partnering.
Tesla Inc
Tesla will launch a free trial of its Full Self-Driving (FSD) service in China from March 17 to April 16, available to Chinese users with compatible vehicles.
UBS Group AG
UBS CEO Sergio Ermotti’s total pay was 14.9 million Swiss francs in 2024, making him the highest-paid CEO among leading European banks, despite public debate in Switzerland about executive compensation.
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.
