Global Markets
North American Markets
Canada’s TSX rose on the back of global market momentum as news broke that Donald Trump had reclaimed the U.S. presidency. Investor sentiment was buoyed by expectations of pro-business policies, with the S&P 500 and Dow futures surging to record highs. This optimism in the equity markets reflected expectations of deregulation, corporate tax cuts, and significant infrastructure spending, reminiscent of the economic strategies during Trump’s previous term. Bitcoin also reached new all-time highs, as digital asset markets reacted positively, perhaps driven by a broader risk-on attitude and speculation around financial innovation.
Japanese Markets
Japanese markets surged 2.5% as the yen weakened, driven by trader optimism surrounding the U.S. election with the strengthening of the US dollar.
Chinese Markets
Chinese markets suffered amid fears of renewed trade tensions. The Chinese yuan weakened significantly, and Chinese equities fell sharply as investors assessed the potential for escalated tariffs and stricter trade measures against China. A Trump administration had previously taken a hardline stance on trade with China, and the possibility of a return to this approach rattled Chinese markets.
European Markets
European shares closed lower on Wednesday after an earlier rally, dragged down by declining utility stocks. Concerns arose over U.S. President-elect Donald Trump’s potential tariffs caused traders to take a risk off approach, as the ECB also echoed this warning. UK Markets markets also fell moderately, as British politicians braced to protect the UK from Trump polices that could affect British trade interests with America.
Currencies
The U.S. dollar experienced its most significant single-day rally since early 2023, as global traders bet on a strengthened U.S. economy under Trump’s leadership. This surge in the dollar underscored expectations of an aggressive fiscal policy that could accelerate growth and drive inflation. Consequently, U.S. Treasury yields climbed to their highest levels since July, reflecting the bond market’s anticipation of rising inflation and potential increases in government borrowing. Investors speculated that Trump’s return could lead to heightened fiscal spending, and bond markets adjusted accordingly, bracing for higher deficits and more robust economic activity.
Commodities
In the commodities sector, gold prices fell to a near three-week low as the strong dollar and rising yields made the safe-haven asset less attractive. Investors moved out of gold, preferring riskier assets amid the newfound bullish sentiment. Oil prices also slipped, with concerns that a Trump presidency could reintroduce policies favorable to increased U.S. oil production, potentially leading to higher supply and downward pressure on global oil prices. Overall, financial markets were in a state of flux as investors recalibrated expectations, grappling with the possible economic and geopolitical shifts of a second Trump presidency.
Corporate Stock News
Amazon.com Inc: CEO Andy Jassy clarified that the policy for employees to work in-office five days per week is focused on strengthening company culture, not reducing costs or fulfilling city agreements. Employees who do not comply will be asked to resign.
Apollo Global Management Inc: JPMorgan increased the target price from $143 to $161 after a broad-based beat in the company’s third-quarter earnings.
Assurant Inc: The insurer reported a strong third-quarter profit, driven by growth in its global housing segment and higher investment returns. Adjusted earnings of $3.00 per share exceeded the expected $2.52.
Cargojet Inc: ATB Capital Markets lowered its target price to C$155 from C$165, following a weaker margin outlook.
CVS Health Corp: The company named Steve Nelson to lead its Aetna division and reported a significant drop in third-quarter profit to $1.09 per share from $2.21 a year earlier, largely due to rising medical costs and a $1.1 billion charge related to insurance losses.
Dave Inc: The FTC filed a lawsuit against the fintech firm, accusing it of deceptive practices, including misleading users about cash advance availability and charging hidden fees. Dave contests the FTC’s allegations.
Devon Energy Corp: The company posted higher-than-expected third-quarter profit, driven by a 9.5% rise in production, and raised its fourth-quarter production forecast. Adjusted profit of $1.10 per share slightly beat expectations.
International Flavors & Fragrances Inc: The company raised its annual sales forecast after reporting third-quarter net sales of $2.93 billion, ahead of the $2.83 billion estimate. Adjusted earnings of $1.04 per share missed the forecasted $1.08.
Jack Henry & Associates Inc: Reported a 17% increase in first-quarter profit to $1.63 per share, driven by higher demand for digital modernization solutions from banks.
KKR & Co Inc: Acquired a 35% stake in Japanese software developer Fuji Soft, securing enough shares to potentially block a competing bid from Bain Capital.
Lumen Technologies Inc: Revised its annual free cash flow forecast upwards, aided by AI contracts worth over $8 billion. Third-quarter revenue fell 12% to $3.22 billion, and the adjusted loss widened to 13 cents per share.
Microchip Technology Inc: Issued a downbeat forecast for the third quarter, citing weak automotive demand, though second-quarter profit of 46 cents per share exceeded the 43-cent estimate.
Novavax Inc: Settled a dispute with the UK Health Security Agency, agreeing to refund $123.8 million related to COVID-19 vaccine payments over three years.
Novo Nordisk A/S: Delivered better-than-expected third-quarter sales for its Wegovy drug, with a 26% increase in operating profit. The company is alarmed by the risks of unregulated, compounded versions of its weight-loss drugs.
Spirit AeroSystems Holdings Inc: Warned of financial instability and doubts about its ability to continue as a going concern amid financial challenges, exacerbated by a strike impacting Boeing’s 737 MAX production.
Super Micro Computer Inc: Announced uncertainty about the timing of its annual report, following the auditor’s resignation. The company anticipates lower-than-expected sales and profits, though no fraud was detected.
Thomson Reuters Corp: TD Cowen raised the target price from C$235 to C$250, citing better-than-expected third-quarter results.
Toyota Motor Corp: Reported its first quarterly profit decline in two years, reducing its vehicle production forecast due to ongoing challenges. Operating profit fell 20%, in line with expectations.
Trump Media & Technology Group Corp: Posted a net loss of $19.2 million in the third quarter, primarily due to legal and streaming deal-related expenses. Revenue totaled $1 million.
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