Global Markets
Canadian Markets
The Toronto Stock Exchange dropped, primarily influenced by a decline in oil and gold prices. Despite this, positive news emerged from the manufacturing sector. The Institute of Supply Management (ISM) released its Manufacturing Purchasing Managers Index (PMI) report, which exceeded expectations. The PMI rose to 48.4, compared to a forecast of 47.7. While still below the 50-mark that separates expansion from contraction, the higher-than-expected figure suggests improving conditions. Later this week, the focus will shift to the release of November’s employment data, which could play a pivotal role in shaping the Bank of Canada’s upcoming rate decision.
American Markets
U.S. stock indexes showed mixed performance as markets weighed upcoming economic reports expected later in the week. Key releases include the November nonfarm payrolls report, which is anticipated to offer insights into labor market health, and several surveys detailing economic activity. Investors remain cautious, awaiting signs that could influence the Federal Reserve’s future monetary policy stance.
European Markets
In France, investor sentiment soured as political uncertainty gripped the markets. A proposed government budget has triggered a no-confidence motion, casting doubt over the stability of President Emmanuel Macron’s administration. The heightened risk of political instability led to a sell-off in French equities and added pressure on the euro, but the index recovered its losses and closed the day flat.
German manufacturing sector PMI data revealed the country’s manufacturing base was in a significant downturn for November.
UK markets rose as mortgage holders about to be squeezed with higher carrying costs, says the Bank of England, while factory orders continue to slow.
Japanese Markets
The Nikkei 225 index rebounded, reversing earlier losses to close higher. This positive momentum was driven by speculation that the Government Pension Investment Fund (GPIF), the world’s largest pension fund, may increase its allocation to equities. Such a move would provide a significant boost to the market, spurring optimism among investors.
Corporate Stock News
Ardent Health Partners Inc: JPMorgan raised the target price to $20 from $19, citing growth projections and a favorable market outlook for healthcare facilities.
Canadian Banks: Four of Canada’s six largest banks are expected to report a rise in Q4 earnings, with forecasts closely monitored amid looming mortgage renewals, potential interest rate cuts, and a changing political landscape in the U.S.
Chorus Aviation Inc: BMO raised the target price to C$3.75 from C$3, considering progress in the sale of its leasing segment, pending shareholder and regulatory approvals.
Chewy Inc: Piper Sandler increased the target price to $40 from $35, noting encouraging trends in pet adoptions.
Foot Locker Inc: Piper Sandler lowered the target price to $28 from $30, reflecting adjustments in 2025 EPS estimates and a choppy sales outlook.
HCA Healthcare Inc: JPMorgan increased the target price to $380 from $379, driven by strong volume and pricing trends.
HSBC Holdings plc: The company’s board has begun the process of finding a new chairman, with incumbent Mark Tucker expected to step down by 2026.
JPMorgan Chase & Co & Tesla Inc: Both companies agreed to drop their legal claims against each other over a 2014 stock warrant dispute linked to Tesla CEO Elon Musk’s 2018 tweet. Separately, Singapore’s central bank fined JPMorgan $1.79 million for failing to prevent and detect misconduct by its relationship managers.
Mercedes-Benz Group AG: Plans to invest $75 million in China’s autonomous driving developer Momenta, with potential for additional investment during Momenta’s 2025 IPO. Four future models in China will incorporate Momenta’s software.
Meta Platforms Inc: Introduced stricter ad rules for Australian financial services to combat scams, requiring advertisers to verify Australian Financial Services License numbers and beneficiary information.
Nissan Motor Co Ltd: CFO Stephen Ma is reportedly stepping down amid ongoing company restructuring, including plans to cut 9,000 jobs and reduce costs by $2.6 billion.
Nike Inc: JPMorgan cut the target price to $73 from $77 due to challenges in product lifecycle transitions and difficulties in Greater China and EMEA markets.
Rogers Sugar Inc: BMO raised the target price to C$7 from C$6.50, citing strong demand for sugar and earnings potential from capacity expansions.
Stellantis NV: CEO Carlos Tavares resigned abruptly after a recent profit warning and significant stock value loss. An interim executive committee, led by Chairman John Elkann, will oversee operations until a new CEO is appointed in 2025.
TCP Energy Corp: BMO raised the target price to C$73 from C$70, highlighting the company’s premium energy infrastructure assets and rising North American gas demand.
UBS Group AG: Finance Minister Karin Keller-Sutter emphasized that UBS’s new capital requirements under Basel III should remain proportionate. The parliamentary report on the Credit Suisse crisis is forthcoming.
Volkswagen AG: Workers staged strikes at nine German plants, halting production over disputes regarding operations. These actions disrupted production, including at the Wolfsburg plant, and could escalate if no agreement is reached in wage negotiations.
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