Global Markets
Canadian Markets
Canada’s TSX rose moderately on light trading volume, as many investors were on holiday in the US. Traders are reluctant to open new positions while the majority of institutional investors are off. Gold and Oil were flat as Canada Post laid off workers as the strike proceeded onwards. The Liberal Government’s holiday tax break is expected to pass parliament today as investors digest the impact on the consumer and the retail sector going into the holiday season..
European Markets
In Europe, tech stocks played a key role in the rebound of European shares, helping to recover from a two-day drop caused by concerns over France’s economic and political instability. The uncertainty surrounding the French government and its economic policies had weighed on investor sentiment, but the tech sector’s performance helped lift the broader market.
In the UK, the stock market was largely flat, despite a surge in house sales figures. The increase in housing activity was attributed to buyers rushing to finalize deals ahead of a planned increase in stamp duty taxes.
Chinese Markets
In China, stocks fell as investors grew increasingly worried about the potential escalation of the trade war with the U.S., particularly following the possibility of additional sanctions, such as a further ban on chip sales to China. Additionally, concerns about a price war between Chinese automakers further weighed on market sentiment. The combination of geopolitical tensions and competitive pressures in the domestic automotive sector led to a decline in stock prices.
Japanese Markets
Meanwhile, Japan’s Nikkei index reversed earlier losses to end the day higher. Positive economic data and investor optimism regarding Japan’s economic prospects helped support the market.
Currencies
The U.S. dollar saw a slight recovery, edging up from a two-week low against its major peers, but the Japanese yen was poised for its strongest weekly performance in nearly three months. This strength in the yen was driven by growing expectations that the Bank of Japan might raise interest rates in its upcoming December meeting, which could signal a shift in the country’s long-standing accommodative monetary policy.
Corporate Stock News
AGF Management Limited, maintains a “Hold” rating with a target price of CAD 11.50, according to Morningstar.
Aviva and Direct Line Insurance: British insurer Direct Line rejected a $4.16 billion takeover offer from rival Aviva, citing that the bid “substantially undervalued” the company.
Baidu Inc., a leading Chinese internet and AI company listed on NASDAQ with a market cap of $27.63 billion, received a “Hold” rating and a target price of $87 from a top-rated J.P. Morgan analyst with a 97% success rate.
Best Buy Inc, Wedbush Securities has updated its target price for Best Buy with a USD 90, 12 month forecast, and maintained a “Hold” rating .
Extendicare Inc: RBC raised its target price for Extendicare to C$11 from C$9.5 after stronger-than-expected Q3 earnings, supported by government funding.
Ford Motor Company, listed on the NYSE, is maintained with a “Strong Buy” by Morningstar, maintaining a target price of $19 .
LVMH: Bernard Arnault, LVMH Chairman and CEO, will testify in Paris regarding the actions of France’s former spy chief Bernard Squarcini in a case that highlights the luxury group’s efforts to protect its image.
Microsoft: The U.S. Federal Trade Commission has launched a broad antitrust investigation into Microsoft, examining its software licensing and cloud computing practices.
Trump’s Canada Tariff Proposal: Analysts warned that proposed tariffs on Canada by President-elect Donald Trump would disrupt oil trade, driving up fuel prices in the U.S.
Uniper: The German state-owned utility raised its 2024 adjusted EBITDA outlook to €2.5–€2.8 billion, citing favorable outcomes in legal disputes.
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