Mixed Global Performance Amid Geopolitical and Economic Concerns
Canadian Markets
The Toronto Stock Exchange (TSX) edged higher on Tuesday, supported by gains despite mixed performance in commodities. Energy and materials stocks showed resilience, even as oil prices remained volatile and base metals exhibited uneven trading patterns. The Canadian dollar weakened, providing a boost to exporters but reflecting broader concerns about the country’s economic outlook.
American Markets
U.S. markets delivered a mixed performance as investors digested news that President-elect Donald Trump was contemplating the declaration of a national economic emergency to fast-track a new tariff program. While industrials and defense stocks saw gains on the potential for increased government spending, technology and consumer sectors faced pressure amid fears of trade disruptions. The prospect of escalating protectionist policies raised questions about the long-term impact on global supply chains.
European Markets:
European stocks declined broadly, with the exception of the defense sector, which rallied after President-elect Trump reiterated his commitment to bolstering NATO funding during a press conference. His remarks also emphasized Greenland’s strategic importance, drawing attention to potential geopolitical maneuvers in the Arctic.
The UK’s FTSE 100 saw modest gains, as rising loan rates buoyed financial stocks. However, the British pound fell against the U.S. dollar, reflecting uncertainties surrounding the UK’s economic stability and global trade dynamics.
Asian Markets:
Japan’s Nikkei fell, weighed down by concerns over weak export data and lingering inflationary pressures, while the yen continued to weaken.
Chinese stocks suffered sharp losses, particularly in the chipmaking and consumer sectors, as geopolitical tensions and economic uncertainties dampened investor confidence. Concerns over potential sanctions and regulatory crackdowns further pressured Chinese tech stocks.
Corporate Stock News
Alimentation Couche-Tard Inc
- Target Price Update: National Bank of Canada raised target price of Alimentation to C$89 (from C$87), citing improved customer sentiment in Europe.
Amazon.com Inc
- Corporate Update: AWS plans to invest $11 billion in Georgia to expand cloud computing and AI infrastructure, creating at least 550 jobs.
ANSYS & Synopsys Inc
- Corporate Update: UK’s CMA may accept remedies for their $35 billion merger, including divestments of certain products to address antitrust concerns.
Apple Inc
- Corporate Update: iPhone 16 sales in Indonesia remain blocked due to unmet local content requirements, despite plans for a $1 billion Airtag facility.
Autodesk Inc
- Target Price Update: Piper Sandler raised target price to $357 (from $311), forecasting mid-teens growth.
AVITA Medical Inc
- Corporate Update: Reduced fiscal 2024 revenue forecast to $64.3M (from $68-$70M) and delayed profitability target to Q4 fiscal 2025.
Crown Castle Inc
- Corporate Update: CFO Daniel Schlanger will step down by March 31, 2025. The company is in advanced talks to sell its fiber unit to TPG.
Embraer SA
- Corporate Update: Delivered 206 aircraft in 2024, up 14% YoY, with Q4 deliveries steady at 75 units.
Expand Energy Corp
- Corporate Update: Projects output of 7 billion cubic feet/day by 2025 and aims to increase international sales.
Exxon Mobil Corp
- Corporate Update: Exxon Anticipates Q4 earnings drop of $1.75B due to lower refining margins, with impairments adding up to $600M.
Flutter Entertainment Plc
- Corporate Update: Adjusted U.S. FanDuel 2024 earnings down by $205M due to bettors’ winning streak in American football.
General Motors Co
- Corporate Update: GM Facing class-action lawsuit in Australia over alleged defective transmission systems in Holden vehicles.
George Weston Ltd
- Target Price Update: Scotiabank raised target price to C$240 (from C$218), emphasizing strong positioning for 2025.
Goodyear Tire & Rubber Co
- Corporate Update: Sold Dunlop brand rights to Sumitomo Rubber for $701M, retaining some licensing rights for truck tires.
GSK & Pfizer Inc
- Corporate Update: FDA flagged RSV vaccines for potential increased risk of Guillain-Barré syndrome based on postmarketing trials.
Honda Motor Co
- Corporate Update: Honda plans cautious EV production rollout and delays Canada battery plant expansion amid U.S. policy uncertainties.
Janus Henderson Group PLC
- Corporate Update: Opposes Saba Capital’s proposal to replace trust boards, citing risk and uncertainty.
Merck & Co Inc
- Corporate Update: Gardasil HPV vaccine approved for males aged 9-26 in China, boosting market potential.
Nike Inc
- Target Price Update: RBC cut target price to $70 (from $80), citing slower-than-expected turnaround.
NVIDIA Corp
- Corporate Update: Unveiled Project DIGITS, a $3,000 AI desktop computer, co-designed with MediaTek for energy-efficient CPUs.
Poseida Therapeutics Inc
- Corporate Update: Roche completed acquisition in a deal worth up to $1.5 billion, focusing on blood cancer therapies.
Radian Group Inc
- Target Price Update: KBW cut target price to $40 (from $41), citing challenges for mortgage-sensitive businesses.
Shell PLC
- Corporate Update: Lowered Q4 LNG production outlook to 6.8-7.2M tons, with trading results expected to be significantly lower.
Tapestry Inc
- Target Price Update: Barclays raised target price to $87 (from $57), highlighting strong brand positioning for market share growth.
Telus Corp
- Target Price Update: CIBC cut target price to C$24 (from C$25), citing anticipated reductions in capital expenditures post-fiber rollout.
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