Global Markets

Canadian Markets

Canada’s main stock index rose on gains in metal prices, including gold.  Gold, in particular, saw a notable rise as investors sought safe-haven assets ahead of this week’s Canadian inflation data. Inflation data remains a key focus for investors, as any signs of rising prices could prompt further tightening of monetary policy by the Bank of Canada. Analysts are closely watching the report for insights into the central bank’s next moves, which could influence the outlook for interest rates and economic growth.

American Markets

In the U.S., major stock indices also posted gains as investors looked ahead to earnings reports from some of the biggest corporate names. The earnings season is in full swing, and while Wall Street is optimistic about corporate profits, there is particular anticipation surrounding the results from Nvidia, a key player in the semiconductor sector. Nvidia has been at the forefront of the AI boom, and its earnings report is expected to give further clues about the future trajectory of the tech sector. Investors are hoping for strong performance to sustain the bullish sentiment in U.S. markets. At the same time, broader concerns about inflation and interest rate hikes continue to linger in the background, influencing investor sentiment.

European Markets 

In Europe, markets were more subdued, with a mixed performance across regional indices. The  decline was largely driven by losses in the real estate and technology sectors.

UK Stocks rose on the mining sector as data showed UK house prices dropped.  Analysts also warned that Trumps tariffs could cost the UK 20 Billion pounds in losses.

Japanese  Markets

In Japan, the Nikkei 225 index dropped following comments from Kazuo Ueda, the governor of the Bank of Japan (BoJ), who failed to provide any clear indication about the timing of future interest rate hikes. The BoJ has maintained ultra-loose monetary policy for years, but with inflation rising, there is growing speculation that the central bank might start tightening in the near future. However, Ueda’s recent remarks left investors uncertain about when this might happen, leading to a pullback in the Nikkei. Market participants were hoping for clearer signals on rate policy, as the BoJ’s stance on interest rates has significant implications for both domestic and global markets. The uncertainty around the BoJ’s next steps added volatility to Japanese equities, with investors also keeping an eye on the global economic outlook and its impact on the yen.

Currencies

The U.S. dollar edged higher against the Japanese yen, continuing a trend of dollar strength that has been fueled by expectations of higher interest rates in the U.S. compared to Japan. With the Federal Reserve’s hawkish stance on inflation, the dollar has been buoyed by rising U.S. Treasury yields, making the dollar more attractive to investors relative to the yen. The Japanese currency remains under pressure as the BoJ keeps its rates low, creating a stark contrast with the tightening policies of central banks elsewhere, such as the Federal Reserve and the European Central Bank.

Oil Prices

Oil prices also saw a modest increase, driven in part by intensifying fighting between Russia and Ukraine over the weekend. The escalation of the conflict in eastern Ukraine raised concerns about further disruptions to global energy supplies, particularly natural gas and oil exports from Russia. The geopolitical risk premium in oil prices remains a key factor supporting market sentiment. However, concerns about fuel demand in China, the world’s largest oil importer, and forecasts of a potential global oil surplus capped the upside for oil prices. China’s economic recovery has been slower than expected, with demand for energy lagging in key sectors such as manufacturing and transportation. Meanwhile, predictions of oversupply in the global oil market in the second half of the year, driven by increased production from major oil producers like the U.S. and Saudi Arabia, also weighed on prices.

Corporate Stock News

1. Airbnb Inc: Urged Barcelona’s mayor to reconsider a crackdown on short-term rentals, arguing that it only benefits the hotel industry while exacerbating overtourism and the housing crisis.
2. Alibaba Group Holding Ltd: Aims to raise $5 billion through multi-tranche dollar and yuan bonds, the largest corporate bond deal in the Asia Pacific this year. JPMorgan cuts its target price for the company to $120 from $125.
3. Amazon.com Inc: Turkey’s Personal Data Protection Board fined Amazon’s Twitch gaming platform 2 million lira over a data breach, affecting 35,274 individuals in Turkey.
4. Brookfield Corp: Plans to offer around 7 billion euros for Spanish drugmaker Grifols, with a proposed bid of 10.5 euros per share, below Grifols’ current market price. Grifols has lost 30% of its market value since January.
5. CareMax Inc: Filed for Chapter 11 bankruptcy protection in Texas, listing $693 million in debts and $390 million in assets. The company is exploring a sale or other transactions for its assets.
6. Chemtrade Logistics Income Fund: CIBC raised its target price to C$15 from C$14, following the company’s third-quarter performance, which was driven by its electrochemicals segment.
7. CCL Industries Inc: CIBC raised its target price to C$96 from C$93, reflecting increased medium-term estimates and a weaker Canadian dollar.
8. CVS Health Corp: Announced it would add four new members to its board, including Glenview Capital Management CEO Larry Robbins. Glenview increased its stake in CVS by 31%.
9. Eli Lilly and Co & Novo Nordisk A/S: U.S. government health plans now cover the majority of users of popular weight-loss drugs, such as Wegovy and Zepbound, which are reimbursed under Medicaid and federal programs.
10. Enerflex Ltd: CIBC raised its target price to C$8.75 from C$7.5, believing the company will remain disciplined with its 2025 capital budget to reduce debt levels.
11. Franco-Nevada Corp: Canaccord Genuity cuts its target price to C$190 from C$198, citing lowered 2024 Gold Equivalent Ounce (GEO) guidance.
12. Grifols: The Spanish drugmaker’s stock has fallen 30% since January after accusations from Gotham City Research that it overstated earnings and understated debt. Brookfield is planning a takeover bid.
13. Mattr Corp: ATB Capital Markets downgraded its rating to “sector perform” from “outperform,” following the company’s reduced growth outlook for 2025 due to macroeconomic pressures.
14. Newmont Corporation: Orla Mining plans to acquire Newmont’s Musselwhite Gold Mine in Ontario for $850 million, which will significantly boost Orla’s gold production.
15. Netflix Inc: Reported that 60 million households worldwide tuned in to the Jake Paul vs. Mike Tyson boxing match, with 65 million streams peaking during the event. The match was a global success.
16. Nvidia Inc: New Blackwell AI chips are facing overheating issues in accompanying server racks, causing delays. Nvidia has been working to resolve the issue but customers are concerned about data center timelines.
17. Orla Mining: Announced the acquisition of the Musselwhite Gold Mine from Newmont for $850 million, which will more than double its gold production to over 300,000 ounces.
18. Southwest Airlines Co: A bullet struck a Southwest plane at Dallas Love Field, causing damage and delaying a flight to Indianapolis. No injuries were reported.
19. Spirit Airlines Inc: Filed for Chapter 11 bankruptcy protection after a period of losses and debt challenges. It has reached a deal with bondholders to reduce debt and provide financial flexibility.
20. Syndax Pharmaceuticals Inc: The FDA approved the company’s drug, Revuforj, for the treatment of a type of blood cancer, sending its stock higher in after-hours trading.
21. Technipfmc Plc: RBC initiated coverage with an outperform rating and a target price of $37, citing the company’s record $14.7 billion offshore backlog and strong growth prospects.
22. T-Mobile US Inc: The company’s network was compromised in a Chinese cyber-espionage operation targeting U.S. and international telecommunications companies, according to The Wall Street Journal.
23. Tiny Ltd: Canaccord Genuity lowered its target price to C$1.65 from C$2.25, following the company’s weak third-quarter performance.
24. Tronox Holdings Plc: Mizuho lowered its target price to $12 from $14, due to concerns about titanium dioxide prices and industry overcapacity.
25. Warner Bros Discovery Inc: Settled its lawsuit with the NBA, securing a new decade-long deal for NBA content. The company also struck a deal with Disney to license “Inside the NBA” to ESPN and ABC.
26. Yelp Inc: JPMorgan raised its target price to $36 from $35, with strength in Yelp’s services business offsetting headwinds in the restaurant, retail, and other segments.

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