Global Markets
Canadian Markets
Canada’s main stock index declined as oil prices slipped, driven by profit-taking amid concerns over weak retail data from China. The decline in oil prices weighed heavily on energy stocks, leading to a broader pullback in the index. This comes ahead of a pivotal week for global markets, with the U.S. Federal Reserve widely anticipated to implement a 25-basis-point rate reduction on Wednesday.
American Markets
Investors in U.S. markets approached the new trading week with caution, resulting in a mixed performance for major indices. The market’s focus has shifted toward the outlook for rate cuts in 2024, alongside key economic releases scheduled this week, including the Federal Reserve’s preferred inflation measure, the PCE price index, and the final reading of third-quarter GDP figures.
European Markets
European equities tumbled after Moody’s delivered an unexpected downgrade to France’s credit rating, citing fiscal pressures and a challenging macroeconomic environment. This downgrade further exacerbated investor concerns, leading to broad declines across major European indices.
The Bank of England (BoE) is set to discuss monetary policy later this week. The central bank is expected to maintain their current interest rate levels.
Chinese Markets
Chinese markets faced selling pressure as November retail sales data came in below expectations, signaling continued weakness in consumer spending and raising concerns about the country’s economic recovery.
Japanese Markets
The Nikkei in Japan, however, managed to close nearly flat, reflecting a wait-and-see approach by investors ahead of key central bank meetings.
Bank of Japan (BoJ) are set to convene for monetary policy as the central bank is expected to maintain their current interest rate levels.
Corporate Stock News
Amazon.com Inc: Jefferies raises the target price to $275 from $235, citing the company’s cloud leadership and potential AI-driven revenues.
Berkshire Hills Bancorp Inc & Brookline Bancorp Inc: The two regional banks, each with $12 billion in assets, are in merger talks, with an announcement expected soon.
BioNTech SE: The FDA lifted a clinical hold on a lung cancer drug trial, allowing the study to focus on squamous non-small cell lung cancer patients.
Boeing Co & Lockheed Martin Corp: Their joint venture, United Launch Alliance, is developing a Vulcan rocket model to compete with SpaceX in the low Earth orbit satellite launch market.
Booking Holdings Inc: TD Cowen raises the target price to $6,300 from $5,500, citing ad leverage and cost efficiency as profit drivers.
BP Plc: BP and ADNOC’s joint venture Arcius Energy will focus on natural gas projects in Egypt, with BP holding a 51% stake.
Catalent Inc & Novo Nordisk A/S: Regulatory conditions for Novo Holdings’ $16.5 billion acquisition of Catalent have been met, with completion expected soon. Novo Nordisk plans a $1.2 billion facility in Denmark for rare disease drug production.
Check Point Software Technologies Ltd: Nadav Zafrir becomes CEO, succeeding founder Gil Shwed, who steps down after 30 years to become executive chairman.
Checkpoint Therapeutics Inc: FDA approves its skin cancer drug, Unloxcyt, for advanced and metastatic cutaneous squamous cell carcinoma.
Ford Motor Co: Jefferies downgrades the stock to underperform and lowers the target price to $9 from $12, citing inventory concerns and European market issues.
General Motors Co & Toyota Motor Corp: Automakers oppose California’s plan to end gasoline-only vehicle sales by 2035, citing economic and logistical challenges.
Honeywell International Inc: The company is reviewing a potential aerospace business separation, with updates expected during its Q4 earnings report.
HSBC Holdings Plc: Australia’s regulator accuses HSBC of delays in addressing reports of unauthorized transactions totaling A$23 million.
Lamb Weston Holdings Inc & Post Holdings Inc: Post Holdings is exploring a potential deal with Lamb Weston, citing synergies between the two companies.
Marathon Petroleum Corp: The Teamsters ratified a seven-year agreement at the Detroit refinery, ending a three-month strike.
Meta Platforms Inc: Ofcom’s online safety regime requires platforms like Facebook to tackle illegal content. Meta also raises concerns over OpenAI’s for-profit transition and handles labor disputes in Kenya.
Nasdaq Inc: Nasdaq leads IPO listings over NYSE for the sixth consecutive year, raising $22 billion across 160 offerings.
Neurocrine Biosciences Inc: FDA approves its genetic disorder drug Crenessity, which will be available within a week.
Netflix Inc: Oppenheimer raises the target price to $1,065 from $825, citing the potential of live events to boost global subscriber growth.
Procter & Gamble Co: Agrees to disclose more about its wood-pulp supplier audits following shareholder pressure for sustainable sourcing.
Tesla Inc: A Delaware judge allows Tesla to appeal the $56 billion pay package ruling for Elon Musk. Tesla also raises U.S. Model S prices by $5,000.
United States Steel Corp: CFIUS has not reached a consensus on Nippon Steel’s $14.9 billion acquisition of U.S. Steel, citing national security concerns.
Zymeworks Inc: JPMorgan upgrades the stock to overweight and raises the target price to $18 from $12, citing licensing partnerships and a strong pipeline.
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