Global Market Update
Canadian Markets
Canada’s TSX dropped as ongoing trade tensions remained a concern, even though there was a brief reprieve on tariffs imposed on automakers. Canadian Tire announced it would restructure and close several stores, signaling potential negative impacts on the retail sector. Economists are raising alarms about the broader consequences these tariff-related disruptions may have on the Canadian economy, especially as the effects of these trade barriers become more apparent in the coming months.
American Markets
U.S. stocks were deep in the red, with major indices experiencing widespread losses. The technology sector took a significant hit, led by Nvidia Corp., which saw its stock drop sharply due to fears about weakening demand. This decline reflected broader concerns about potential slowdowns in consumer and business spending, which could reduce demand for tech products and services.
Meanwhile, the U.S. government announced a temporary pause on tariffs imposed on Mexico, offering a one-month reprieve in exchange for Mexico making further progress on improving border security. This move was seen as a potential easing of trade tensions, though it remains uncertain how long the pause will last and what it will mean for future trade relations between the two countries.
European Markets
European markets managed to finish higher despite the headwinds, as rising long-term bond yields put pressure on stocks, as investors recalibrated their expectations ahead of the upcoming European Central Bank (ECB) rate decision. The ECB’s stance on interest rates will be crucial for the direction of European markets in the short term, particularly as the region continues to grapple with economic uncertainties.
The UK market dropped, with a notable increase in inflationary data. The Bank of England forecasted that British consumer price inflation would rise to around 3.7% in the third quarter of the year, up from the current rate of 3%. This increase was largely attributed to one-off factors, including higher regulated energy prices, increased water bills, and rising bus fares, which are expected to push up the cost of living for British consumers. The rising inflation could lead to increased pressure on household budgets and possibly even impact consumer spending in the broader economy.
Corporate Stock News
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Africa Oil Corp: The Canadian company plans to double its Nigerian output and reserves once it completes the acquisition of full ownership of Prime Oil. This deal will increase Africa Oil’s production to 35,000 barrels per day.
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Allegro Microsystems Inc & ON Semiconductors Corp: Allegro rejected a $6.9 billion takeover bid from Onsemi, calling the offer “inadequate.”
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ARS Pharmaceuticals Inc: The FDA approved the expanded use of ARS’s nasal spray, Neffy, for severe allergic reactions in patients weighing between 15 and 30 kilograms.
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Boeing Co: CEO Kelly Ortberg emphasized the need for a more open culture within the company, highlighting the lack of communication across divisions.
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Canadian Natural Resources Ltd: CNQ:CA reported a decline in fourth-quarter profit due to lower commodity prices, despite higher production. Its finance chief will step down, and a successor has been named.
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Citigroup Inc: Rob Chan has been appointed head of Citigroup’s equity capital markets syndication business for Asia.
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Edison International: The company is facing lawsuits from various public entities over its role in a major California wildfire.
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General Motors Co: Workers at a battery manufacturing joint venture with LG Energy Solution approved their first contract, including a one-time $3,000 lump sum payment and wage increases.
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JD.com Inc: The Chinese e-commerce company exceeded market expectations for quarterly revenue, driven by price cuts and strong year-end sales.
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Logitech International: The company announced it would buy back $2 billion worth of shares over the next three years and increase its current buyback program by $600 million.
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Marvell Technology Inc: The company forecast revenue in line with Wall Street estimates, but investors were disappointed by the lack of stronger AI-driven growth.
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Macy’s Inc: Macy’s forecasted lower-than-expected annual sales and profit, citing economic uncertainty and potential impacts from President Trump’s tariffs.
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Microsoft Corp & NVIDIA Corp: Microsoft has distanced itself from some agreements with Nvidia-backed CoreWeave over delivery and missed deadlines, while CoreWeave seeks a $35 billion valuation.
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Novartis AG: The company is monitoring potential tariff impacts on pharmaceuticals but does not anticipate a significant financial impact from higher U.S. tariffs on imports.
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Novo Nordisk A/S: The company plans to explore how its GLP-1 drugs could help patients struggling with addiction, in addition to their current use for diabetes and weight loss.
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Parkland Corp: The Canadian fuel refiner launched a strategic review that could result in the sale of the company, including the possibility of acquisitions or divestitures.
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Stellantis NV: Stellantis thanked U.S. President Trump for granting a one-month exemption from tariffs on Canada and Mexico, aligning with his goal of increasing U.S. car production.
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Tesla Inc: Tesla will build a new megafactory near Houston, Texas, to produce its Megapack energy products, creating about 1,500 jobs.
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Volkswagen: The automaker is focusing its sales strategy for its 20,000-euro electric car, which will launch in 2027, on the European market.
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Walmart Inc: The retailer has asked Chinese suppliers to lower their prices to offset the impact of President Trump’s tariffs, but many suppliers have resisted.
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Yum! Brands Inc: The company showcased its $1 billion investment in AI and technology, including Taco Bell’s use of AI for drive-through orders and labor optimization.
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Zscaler Inc: ZS raised its fiscal 2025 revenue forecast, citing increased demand for its cloud-based cybersecurity services.
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