Global Market Update
Canadian Markets:
Canada’s TSX rose, driven by gains in energy stocks as oil prices continued their upward momentum. Investors remained optimistic despite broader concerns, focusing on the strength of commodities.
American Markets:
U.S. stocks showed strength across all major indexes, reflecting resilience in the market. Investors, however, awaited key economic data, including labor market reports and inflation readings, to better understand the Federal Reserve’s future interest rate policy.
European Markets:
European markets were in the red, after German unemployment data revealed a sharper-than-expected increase, highlighting continued challenges in Europe’s largest economy.
UK markets also declined as data pointed to a further slowdown in economic growth, raising concerns about the country’s ability to navigate persistent inflation and rising interest rates.
Chinese Markets:
China’s CSI 300 Index ended the week with a significant loss, marking its largest weekly decline since October 2022. Concerns over weakening economic growth and ongoing policy uncertainty weighed on investor sentiment.
Gold:
Gold prices surged to a three-week high, supported by a softer U.S. dollar and increased demand for safe-haven assets. The geopolitical and economic uncertainties globally added to the metal’s appeal as a hedge against risk.
Oil:
Oil prices experienced a slight decline in the latest session but remained on track for weekly gains. This followed a two-month high in the previous session, fueled by optimism surrounding OPEC+ production cuts and stronger-than-expected demand recovery in key markets.
Corporate Stock News
- 3M Co: RBC lowered its target price to $96 from $100, citing the company’s insular nature and resistance to significant operational and cultural changes.
- Apple Inc: Shipments of foreign-branded smartphones to China, including the iPhone, fell 47.4% year-over-year in November. Apple launched a four-day promotion in China to boost sales amid increased competition from domestic rivals like Huawei.
- Block Inc: Raymond James upgraded its rating to Outperform from Market Perform, citing potential acceleration in seller gross payment volume growth to double digits in 2025.
- Boeing Co & General Electric Co: GE Aerospace joined investigations into the Jeju Air Boeing 737-800 crash in South Korea. Special inspections of all Boeing 737-800 jets in South Korea were extended, focusing on maintenance practices and part availability.
- Cameco Corp: Raymond James maintained its Buy rating with a price target of CAD 88.
- Cencora Inc: The drug distributor raised its annual profit forecast, citing benefits from its $4.4 billion acquisition of Retina Consultants of America.
- Citigroup Inc: KBW raised its target price to $85 from $82, highlighting opportunities in investment banking and trading due to anticipated improved market conditions.
- Equinor: The Hammerfest LNG plant in Norway suffered an unexpected outage due to compressor failure, halting output for one week.
- F5 Inc: RBC raised its target price to $260 from $240, citing improved consistency, a better outlook, and recent peer group multiple compression.
- Paramount Global: Skydance Media and Paramount defended their $8.4 billion merger against opposition from critics, urging the FCC to dismiss concerns about foreign influence and competition.
- Papa John’s International Inc: The pizza chain plans to return to the Indian market in 2025, aiming for 650 outlets over a decade.
- Tesla Inc: Tesla’s China sales hit a record high in 2024, delivering over 657,000 cars, up 8.8% year-over-year. Global deliveries, however, fell for the first time, dragged down by reduced European subsidies and increased competition.
- Thomson Reuters Corp: CIBC raised its target price to $165 from $164, citing the acquisition of tax automation company SafeSend.
- Trade Desk Inc: RBC raised its target price to $140 from $136, reflecting improved profitability and growth potential.
- U.S. Steel Corp: President Joe Biden blocked Nippon Steel’s proposed $14.9 billion purchase of U.S. Steel, citing political and economic implications.
- Zegona Communications: Vodafone Spain, a Zegona unit, agreed to create a new fiber network company with MasOrange, with Zegona expected to hold about 10% of the venture.
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.
