Global Market Update
Canadian Markets
Canada’s TSX continued to drop on Friday, primarily driven by ongoing economic concerns and heightened fears around the potential impact of tariffs on the auto industry.
One of the most significant declines was seen in the information technology sector, which dropped by over 2% for the third consecutive session. This sector has been under pressure, driven in part by global market instability and investors’ cautious outlook on growth in tech stocks and the consumer discretionary sector also struggled, dropping over 1%.
Data released Friday showed Canada’s Gross Domestic Product (GDP) showed some resilience, growing by 0.4% in January, suggesting that the economy had a solid start to the year. This growth was supported in part by strong demand for cross-border trade, with Canadian companies seeking to mitigate the impact of U.S. tariffs by increasing exports. The real GDP increase was primarily driven by a boom in the oil, gas, and mining sectors, reflecting the country’s reliance on resource-based industries. However, economists warn that while January showed positive momentum, early signs from February suggest that growth may have slowed, with some analysts predicting a potential economic slowdown in the coming months.
American Markets
U.S., markets were deep in the red caused by the release of the Personal Consumption Expenditures (PCE) price index, which showed that inflation was rising more than expected. The PCE index rose 0.37% month-over-month in February, continuing its trend of higher-than-expected gains. This fueled concerns about the broader economic effects of U.S. President Donald Trump’s tariff policies, which many fear could further drive inflation, particularly in sectors like manufacturing and consumer goods. Trump’s recent tariff announcements — including a 25% tax on imported vehicles and the promise of reciprocal tariffs starting April 2 — have added to the uncertainty surrounding global trade dynamics. Economists are particularly concerned that the ongoing tariff war could trigger higher prices and impact global supply chains, further stoking inflationary pressures.
European Markets
European shares also took a hit, falling to a two-week low, as President Trump’s unpredictable tariff policy began to shake investor confidence in Europe’s market rally. The looming uncertainty around global trade was cited as a major factor behind the pullback in European equities.
UK stocks closed flat, but Oxford Economics’ research released a downbeat forecast for the rest of the year ahead. Oxford Economics warned that the uncertainty surrounding international trade could significantly dampen global growth, with business investment in the EU and the UK potentially falling by 2% in 2025 as companies scale back their expansion plans due to the volatile trade environment.
Corporate Stock News
Amazon.com Inc: Jen Salke, head of Amazon’s MGM Studios, will step down to start a new production entity. The studio will not replace her role and will streamline its leadership structure. Courtenay Valenti and Vernon Sanders will report directly to Mike Hopkins.
Applied Materials Inc: Jefferies raised the target price to $195 from $185 due to an improving market outlook and the re-acceleration of capital expenditures by cloud companies.
Boeing Co: NASA is working toward certifying Boeing’s CST-100 Starliner for crewed flights later this year or early 2026 after a propulsion system fault during its inaugural mission caused an extended stay in space.
Braze Inc: Raymond James raised the target price to $48 from $45 following better-than-expected fourth-quarter results and an initial full-year 2026 outlook.
Cenovus Energy Inc: The company will begin planned maintenance work at its Toledo refinery in Ohio in mid-April. A third of the refinery will be down for about six weeks for maintenance.
CoreWeave Inc: The Nvidia-backed company reduced the size of its U.S. IPO, pricing shares below the indicated range. The company now plans to sell 37.5 million shares at $40 each, below the lower end of the range.
Eli Lilly and Co: The European Union rejected Eli Lilly’s Alzheimer’s drug, Kisunla, due to safety concerns. The company will seek re-examination of the decision while Eisai and Biogen’s Leqembi moves ahead in the market.
Emeren Group Ltd: The company formed a special committee to evaluate a buyout proposal and announced the resignation of its CEO Yumin Liu. Julia Xu will serve as interim CEO.
Enghouse Systems Ltd: RBC cut the target price to C$30 from C$38, expecting weak fundamentals to keep the company’s valuation below its peers.
H.B. Fuller Company: Baird cut the target price to $60 from $73 due to near-term macroeconomic uncertainty affecting the company’s operating environment.
KKR & Co Inc: KKR, alongside Japan Investment Corp, will acquire medical gear maker Topcon in a tender offer buyout worth 348 billion yen. KKR will hold the majority interest.
Liberty Energy Inc: CEO Ron Gusek commented on the modest earnings hit from U.S. tariffs on steel imports, which are causing suppliers to raise costs on certain fracking components.
Lululemon Athletica Inc: LULU company reported weaker-than-expected revenue and profit outlooks due to economic uncertainty and U.S. tariffs impacting demand for its premium athleisure products.
nCino Inc: KBW cut the target price to $40 from $44 due to a downward revision in its fourth-quarter organic subscription revenue, which is expected to impact fiscal-year 2026 revenue guidance.
Rocket Lab USA Inc: The U.S. Space Force awarded contracts to Rocket Lab USA and Stoke Space to expand its portfolio of launch systems for national security missions, helping Rocket Lab compete for future contracts.
Sabre Corp: Sabre is exploring the sale of its hospitality software unit SynXis for over $1 billion to help reduce its debt. The business generates around $300 million in annual revenue.
Shell: Shell is discontinuing its solar and onshore wind power generation projects in Brazil as part of a broader portfolio adjustment.
Suncor Energy Inc: Suncor isolated the source of a hydrocarbon spill at its Sarnia refinery. The company confirmed no injuries and is working to contain the spill near the St. Clair River.
Tidewater Renewables Ltd: CIBC raised the target price to C$3.25 from C$3 following better-than-expected fourth-quarter earnings.
TMC the Metals Company Inc: The Canadian miner initiated a process to apply for exploration licenses to extract minerals from the ocean floor, under the Deep Seabed Hard Mineral Resources Act.
Topicus.com Inc: RBC initiated coverage with a target price of C$170, believing the company’s valuation is attractive due to its strategy of reinvesting free cash flow into acquisitions.
United States Steel Corp: Nippon Steel and U.S. Steel are in talks to preserve their $14 billion merger deal, with Nippon offering up to $7 billion to upgrade U.S. Steel facilities.
Zurn Elkay Water Solutions Corp: The company announced a restructuring plan expected to streamline operations and drive efficiency, aiming to improve its long-term profitability.
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