Global Markets

Canada

Canada’s TSX rose moderately, as crude prices declined almost 2 percent, but gold prices rose 1.8 percent. Higher gold prices are often seen as a safe-haven asset, reflected increased investor demand for stability. Data came out to show Canadian housing starts rose 16 percent in July.

U.S.A

In American markets, indexes also rose, recovering from earlier losses that had been driven by profit-taking after the recent run. Profit-taking refers to investors selling stocks to realize gains after a period of strong performance.  This is a hedge traders use, in anticipation stocks might weaken.

Europe

The pan-European STOXX 600 index, which tracks a broad range of European stocks, was on track to achieve its best weekly performance since the spring. This significant improvement reflects positive sentiment across European markets. UK Markets however fell almost half a percent, even though data came out to show that the UK was the fastest growing G7 economy in first half of this year.

Asia

Japan’s Nikkei index recorded its best week in over four years, showing a strong rebound and sustained growth in the Japanese market. Chinese markets traded flat on Friday, as the government aimed to boost consumer consumption through its policies.

Currency and Commodity Movements

In currency markets, the U.S. dollar weakened against the Japanese yen, suggesting a shift in investor preferences or market dynamics impacting the dollar. In contrast, risk-sensitive currencies such as the British pound remained firm, indicating confidence in higher-risk investments.

Gold prices increased, driven by optimism about a potential U.S. interest rate cut. Lower interest rates often make gold more attractive as an investment, as it does not yield interest but can benefit from lower opportunity costs when rates are low.

Looking Ahead

Market participants are anticipating further insights into U.S. monetary policy. Key upcoming events include the release of minutes from the Federal Reserve’s last policy meeting and Fed Chair Jerome Powell’s economic outlook at the Jackson Hole Economic Symposium. These events are expected to provide more clarity on the Federal Reserve’s stance regarding interest rates and their future trajectory, which will be crucial for investor sentiment and market movements.

Corporate Stock News

• AstraZeneca: The U.S. Food and Drug Administration approved AstraZeneca’s Imfinzi, a cancer drug, for treating a type of non-small cell lung cancer.
• Applied Materials Inc: The largest U.S. semiconductor equipment maker forecasted Q4 revenue slightly above Wall Street estimates, driven by AI demand. For Q4, the company anticipates revenue around $6.93 billion, with an adjusted profit per share forecast between $2.00 and $2.36. Q3 revenue was $6.78 billion, surpassing estimates.
• Bayer: Bayer won a legal victory as a U.S. appeals court ruled federal law protects it from a lawsuit over claims that its Roundup weed killer causes cancer.
• Ford Motor Co: Ford is recalling about 85,000 Explorer SUVs with the Police Interceptor Utility package due to concerns over engine fires.
• Incyte Corp: Incyte reported that its drug Monjuvi met the main goal in a late-stage trial for treating follicular lymphoma. The company plans to file a supplemental marketing application to the FDA by year-end.
• Kroger Co: Kroger plans to reduce grocery prices by $1 billion after its $25 billion merger with Albertsons. The merger, announced in October 2022, has faced antitrust challenges.
• Nebius Group: Formerly Yandex NV, the Dutch company has renamed itself Nebius Group following its split from Russian Yandex. It aims to resume trading on Nasdaq under a new ticker.
• Pfizer Inc: Pfizer and BioNTech’s experimental mRNA vaccine for influenza and COVID-19 did not meet one of its study’s main goals. The vaccine showed strong results for influenza A but weaker results for influenza B.
• PropertyGuru Group Ltd: EQT AB will acquire PropertyGuru for $1.1 billion, offering $6.70 per share, a 7% premium over the last close. The deal values PropertyGuru at a 52% premium to its May 21 close.
• Stellantis: Stellantis has been sued by U.S. shareholders who allege that the automaker defrauded them by concealing inventory issues and other weaknesses, leading to disappointing earnings and a drop in stock price.
• Texas Instruments Inc: Texas Instruments will receive up to $1.6 billion in direct funding from the U.S. Commerce Department to support new manufacturing facilities. Additionally, it expects $6 billion to $8 billion in investment tax credits from the U.S. Treasury Department.
• Yandex NV: Yandex NV, now renamed Nebius Group, has finalized its split from Yandex. The company, which was recently acquired by a Russian consortium, is preparing to resume Nasdaq trading under a new ticker.