Global Market Update
Canadian Markets
Canada’s TSX stock index rose slightly, as gains in oil and gold prices were seen as investors awaited critical employment data from both Canada and the U.S., which could provide further insights into the countries’ future interest rate trajectories. The increase in oil prices was supported by expectations of robust winter fuel demand, despite concerns over the impact of higher-than-expected U.S. fuel inventories. Gold prices rose as well, with investors seeking safe-haven assets amid ongoing economic uncertainties.
American Markets
In the U.S., stock markets were closed in observance of a national day of mourning following the passing of former President Jimmy Carter. This pause in trading left investors turning their attention to global markets for cues on economic and monetary policy developments.
European Markets
European stock markets traded Thursday mixed. Gains in the mining sector helped offset losses in retail stocks, reflecting the ongoing influence of commodity price movements. However, market sentiment remained cautious due to lingering uncertainty over the trajectory of monetary policy in the region and concerns about potential U.S. tariff plans. Bond markets across Europe faced continued pressure as these uncertainties weighed on investor confidence.
UK equities performed strongly, with the FTSE 100 rising by nearly 1%. Optimism in the market was fueled by growing expectations that the Bank of England may ease interest rates sooner than anticipated, providing a boost to domestic sectors heavily reliant on lower borrowing costs.
Asian Markets
Japan’s Nikkei index closed lower, marking a pause after a recent rally. Profit-taking by investors led to declines, particularly in chip-related stocks, which had previously driven gains. The technology-heavy segments of the market felt the brunt of selling pressures as market participants adjusted their positions in response to changing global demand dynamics.
Chinese stocks faced headwinds as official data continued to highlight persistent deflationary pressures in the economy. Despite recent government measures aimed at boosting consumption and invigorating economic activity, investor confidence remained muted. Concerns over the sustainability of China’s recovery weighed on market sentiment, resulting in a dip in major indices.
Corporate Stock News
Airbus Leads Aircraft Deliveries: Airbus maintained its position as the leading global aircraft manufacturer, delivering 766 jets in 2024 amidst strong demand for commercial aircraft.
Auto Suppliers Adjust to Tariff Threats: Global auto suppliers are reassessing production strategies in response to potential U.S. tariffs on imported vehicles. Industry leaders at CES in Las Vegas discussed relocating production to the U.S. or nearby regions to mitigate trade risks.
Canadian Dollar Outlook: A Reuters poll projected a modest recovery for the Canadian dollar over the next year, but potential U.S. tariffs on Canadian goods could limit its upside and strain economic growth.
Canadian Natural Resources (CNR:CA): Canadian Natural Resources plans to increase production by 12% and capital spending by 13.5% in 2025, aiming to meet higher demand amidst tight global oil supplies.
Constellation Energy (CU:CA) and Calpine Deal: Constellation Energy is close to acquiring power producer Calpine in a $30 billion deal, which would expand its generation assets and position it to meet rising U.S. power demand.
Enbridge Inc: CIBC raised its target price for Enbridge Inc. to C$66 from C$63, citing favorable conditions in the natural gas sector, strong demand, and a stable regulatory environment as key growth drivers.
Shell’s Namibia Write-Down: Shell announced a $400 million write-down for an offshore Namibia oil discovery deemed commercially unviable, signaling a setback for Namibia’s crude production ambitions.
Sika Sales Growth Slows: Sika, a Swiss construction chemicals maker, reported a 4.7% increase in full-year sales, down from 7.1% growth the prior year, though the company remains optimistic about future prospects.
TC Energy Corp: CIBC raised its target price for TC Energy Corp to C$70 from C$68, highlighting growth opportunities in the natural gas market, particularly in LNG and industrial applications.
U.S.-Canada Oil Imports: U.S. crude oil imports from Canada reached a record high, according to EIA data, ahead of proposed U.S. tariffs that could affect bilateral trade dynamics.
U.S. Treasury Yields and Fed Concerns: The U.S. 10-Year Treasury yield surged to 4.73%, its highest in over eight months, as Federal Reserve meeting minutes underscored concerns about inflation risks and future rate hikes.
Volvo Group’s Mexico Expansion: Volvo Group committed to a $700 million heavy-truck manufacturing plant in Monterrey, Mexico, despite potential U.S. tariffs on imported vehicles, emphasizing confidence in the regional market.
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