Global Market Update
Canadian Markets
Canada’s TSX (Toronto Stock Exchange) dropped due to a decline in commodity prices and tariff concerns, which significantly impacted the country’s economic outlook. A new analysis from Desjardins Group warns that Canada could soon face a recession that may persist throughout the remainder of the year. This is largely driven by the ripple effects of U.S. President Donald Trump’s tariff war, which has disrupted global economies and trade dynamics.
According to Desjardins Group’s forecast, Canada’s economy is expected to contract by 1.3% in the second quarter of the year. This will be followed by two consecutive quarterly contractions in the third and fourth quarters—0.4% and 0.3%, respectively. However, there is an anticipated slight rebound at the start of 2026, though the recovery may be gradual and uncertain.
American Markets
U.S. stocks dropped across the board as the lingering effects of U.S. President Donald Trump’s tariff policies continued to weigh heavily on investor sentiment. Major options expiries today also added to the volatility.
As a direct consequence of these ongoing economic concerns, FedEx saw its shares tumble as the company lowered its full-year earnings forecast. This adjustment was a direct response to the economic uncertainty triggered by the tariffs, as well as slowing global demand for shipping services. FedEx highlighted that the tariffs had created challenges for its operations, particularly in markets such as China, where the trade war has had a visible impact on economic activity and trade flows.
European Markets
European stocks fell as travel stocks pushed the major indexes lower, as a fire at London’s Heathrow Airport led to the slump on flight disruptions.
UK stocks fell on a pessimistic outlook from manufacturers due to rising input costs., and the pound dropped against the greenback. Oxford Economics found that the global trade concerns will have a major impact on global growth, which will reduce business investment in the EU and the UK by 2% in 2025.
Corporate Stock News
Alnylam Pharmaceuticals Inc: U.S. FDA approved Alnylam’s drug Amvuttra for treating rare heart disease, transthyretin amyloid cardiomyopathy (ATTR-CM). The drug is expected to generate nearly $5 billion in sales by 2029.
Apollo Global Management Inc: BP agreed to sell a $1 billion stake in a firm invested in the TANAP gas pipeline to Apollo Global Management. The TANAP pipeline links Azerbaijan and Turkey, transporting gas to Italy and Greece.
AT&T Inc: British telecom company BT has approached AT&T and Orange for potential partnerships to aid in the turnaround of its international business, including the sale of a stake in its global division.
Carlyle Group Inc: Energean terminated its deal with Carlyle Group for the sale of assets due to delays in regulatory approvals. The $945 million deal involved Carlyle creating a Mediterranean-focused oil and gas company.
Darden Restaurants Inc: Stifel raised its target price for Darden to $215 from $205, highlighting the company’s management team’s strong ability to drive sales and protect margins in the face of inflationary pressures.
Elevation Oncology Inc: Wedbush downgraded its rating to neutral from outperform due to cash per share.
FedEx Corp: Shares fell in premarket trading after the company cut its fiscal 2025 forecast, citing challenges from the Trump administration’s tariffs. FedEx’s fiscal 2025 adjusted earnings per share is now expected to be between $18.00 and $18.60, down from $19-$20.
Johnson & Johnson: The company plans to invest over $55 billion in the U.S. over the next four years, including new manufacturing facilities and research infrastructure, representing a 25% increase in investment compared to the previous four years.
Lennar Corp: The company reported a decline in first-quarter profit due to high mortgage rates and house prices. Lennar’s quarterly profit was $1.96 per share, down from $2.57 last year, while revenue increased by 5% to $7.6 billion.
Micron Technology Inc: The company forecast third-quarter revenue above Wall Street expectations, driven by strong demand for high-bandwidth memory chips used in AI models. It expects $8.80 billion in revenue, higher than analysts’ estimates.
Nike Inc: Shares slipped in premarket after the company warned of a sales decline in the next quarter and reported a 17% drop in China sales due to weaker discretionary spending. Nike expects several quarters to clear excess stock and improve brand performance.
Optinose Inc: Piper Sandler downgraded Optinose’s rating to neutral from overweight after announcing that privately held Paratek Pharmaceuticals will acquire the company.
Tesla Inc: A record number of Tesla vehicles were traded in amid protests against CEO Elon Musk’s role as an advisor to President Trump. Tesla trade-ins are expected to increase, leading to a decline in used Tesla prices.
Zara (Inditex): Inditex opened a new-style flagship store in Nanjing, China, as part of a global effort to reduce underperforming shops and focus on larger retail formats.
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