Global Markets
Canadian Markets
Canada’s main stock index faced significant losses on Wednesday afternoon as a drop in gold prices weighed heavily on the mining sector. The decline in the precious metal reflected broader risk-off sentiment in the markets, compounded by economic and political uncertainties that are affecting investor confidence.
American Markets
U.S. stocks experienced a sharp decline following the Federal Reserve’s decision to cut interest rates by a quarter of a percentage point. While rate cuts are generally seen as supportive of equity markets, the Fed’s ambiguous forward guidance unsettled investors.
European Markets
European stocks ended the day flat, as gains were made in the auto sector after reports surfaced of a potential partnership between Nissan and Honda.
UK markets rose slightly, with data released showing UK factories reported as significant drop in output, showing again more signs of a economic slowdown.
Japanese Markets
Japan’s Nikkei index closed lower as investors awaited a decision from the Bank of Japan on monetary policy. Concerns over potential tightening measures contributed to caution in the market.
Chinese Markets
Chinese markets were higher, recovering after news of a potential record-breaking government budget deficit plan aimed at stimulating the economy.
Investors in China are optimistic that increased fiscal spending will bolster infrastructure projects and drive economic growth, providing a boost to equities.
Corporate Stock News
Apple Inc
- The Democratic Republic of Congo filed criminal complaints against Apple subsidiaries, accusing them of using conflict minerals in their supply chain. Apple disputes the claims, stating its suppliers must not use minerals from Congo or Rwanda and have suspended sourcing from these regions due to conflict escalation.
Birkenstock Holding Plc
- Fourth-quarter revenue reached €455.8 million, beating estimates of €439.2 million, driven by strong full-price sales in the U.S. and Asia. Fiscal 2025 revenue is projected to grow between 15% and 17%.
Boeing Co
- Boeing resumed production across its 737, 767, and 777/777X airplane programs after resolving a machinists’ strike in the Pacific Northwest.
Fiat-maker Stellantis
- Stellantis unveiled a plan to boost Italian production starting in 2026, aiming to improve relations with the government.
First Solar Inc
- Jefferies lowered the target price of First Solar to $248 from $257, citing challenges in interconnection, permitting, and supply chains.
General Mills Inc
- Quarterly sales exceeded expectations, reaching $5.24 billion. Despite lowering its annual profit forecast, the company beat earnings estimates with $1.40 per share.
GE Vernova Inc
- Jefferies raised the target price to $391 from $348, anticipating higher demand for power infrastructure to bolster the company’s financial position.
HSBC Holdings Plc
- HSBC appointed John Shipman as interim CEO of its Swiss Private Bank and country head of HSBC Switzerland, effective January 2025.
KKR & Co Inc
- Grenergy sold a Chilean asset portfolio to KKR’s ContourGlobal for $962 million. Meanwhile, Bain Capital announced plans for a tender offer for Fuji Soft if KKR’s bid fails.
Lucero Energy Corp
- Haywood Securities downgraded the stock to “tender” from “buy,” reducing the target price to C$0.48 after its acquisition by Vitesse Energy.
Mastercard Inc
- Mastercard approved a $12 billion share repurchase program and raised its quarterly dividend to $0.76.
Merck & Co Inc
- Merck signed a $2 billion partnership with Hansoh Pharmaceuticals to develop an experimental obesity drug.
Morgan Stanley
- Morgan Stanley hired Abdulrahman Al-Abdulla to head its Qatar business, reflecting expansion plans in the Gulf region.
Netflix Inc
- The Dutch Data Protection Authority fined Netflix €4.75 million for insufficient transparency regarding data usage between 2018 and 2020.
Novo Nordisk A/S
- The EU drug regulator will review studies linking Novo Nordisk’s Ozempic to a rare eye disease, raising safety concerns.
Packaging Corp of America
- Jefferies upgraded the stock to “buy,” citing strong fundamentals supporting capital deployment and expansion.
Patriot Battery Metals Inc
- Volkswagen invested C$69 million for a 9.9% stake in the company at a 66.8% premium. Patriot also signed a supply agreement with Volkswagen’s battery manufacturer, committing to deliver 100,000 tonnes of spodumene concentrate annually for 10 years.
Principal Financial Group Inc
- Piper Sandler upgraded the stock to “overweight,” highlighting growth potential in its small and medium-sized business offerings.
Tenaz Energy Corp
- Haywood Securities increased its target price to C$17.5, citing growth opportunities in Europe.
Tesla Inc
- Shanghai plant manager Song Gang left Tesla as the factory’s expansion plans remain uncertain.
Thyssenkrupp AG
- Thyssenkrupp is pursuing a spin-off for its defense business, with potential suitors reportedly expressing interest.
Uber Technologies Inc
- Uber and CEO Dara Khosrowshahi each donated $1 million to Donald Trump’s inaugural fund, reportedly seeking positive relations with the administration.
Williams-Sonoma Inc
- Jefferies raised the target price to $226 from $194, expecting strong growth in emerging brands like West Elm Kids.
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