Market Analysis: Aug 12th, 2025

STA Research
August 12th, 2025
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Global Market Update

Canadian Markets

Canada’s main stock index advanced despite a slight retraction in commodity prices, as investors continued to digest the weak Canadian employment data from Friday. The disappointing jobs report reinforced concerns over a rapidly deteriorating economic outlook, prompting traders to reassess their risk exposure and portfolio positioning. Market sentiment remains cautious, with many believing the full impact of ongoing global trade tensions — particularly the tariff war — will not be fully felt until next year, potentially adding further pressure to growth.

American Markets

American stock markets traded sharply higher even though the latest Consumer Price Index (CPI) report showed inflation rising, but lower than anticipated.  The Consumer Price Index (CPI) increased 2.7%  from the previous year, coming below economist’s expectations of a rise of 2.8 perecent for July.

Investors are anticapting the inflation print complicates the Federal Reserve’s monetary policy path, in holding rates steady, as the new data is expected  to force the feds to cut rates, prompting a spike in the markets.

European Markets

European stocks delivered a mixed performance, as German investor morale dropped more than economists had expected in August, reflecting concerns over slowing industrial activity and export demand. However, optimism was partially offset by an improving second-quarter corporate profit outlook across the region, suggesting earnings resilience despite economic headwinds.

In the UK, stocks closed higher as the British pound strengthened following the release of labour market data. While hiring levels declined, wage growth remained stubbornly high, underscoring the Bank of England’s policy dilemma: raising rates risks further economic cooling, but easing prematurely could reignite inflationary pressures.

Corporate News

Adidas (ADS:DE) – Faces pressure from Mexican government over shoe design inspired by Indigenous sandal.
Air Canada (AC:CA) – Flight attendants picket major airports over unpaid labor amid wage talks; strike possible as early as Aug. 16.
Albemarle (ALB) – COO Netha Johnson to leave; no timeline or reason disclosed.
American International Group – AIG (AIG) – KBW cuts target to $91 from $97 on slower growth and higher expenses.
Alphabet (GOOGL) & Apple (AAPL) – Australian court rules app stores uncompetitive in Epic Games case; Elon Musk’s xAI to sue Apple over App Store rankings.
Biohaven (BHVN) – Baird cuts target to $52 after OCD drug trial failure.
Celanese (CE) – Q3 profit forecast below estimates on weak demand, especially in Europe.
Citigroup (C) – CEO Jane Fraser meets Mexican president to discuss potential Banamex IPO by year-end.
Delta Air Lines (DAL) – DOJ backs plan to revoke antitrust immunity for Delta–Aeroméxico alliance.
Ford (F) – Recalls 103K F-150 trucks in U.S. over axle bolt defect risk.
Gildan Activewear (GIL:CA) – In advanced talks to acquire Hanesbrands (HBI) for ~$5B including debt; deal could be reached this week.
Intel (INTC) – Trump meets CEO Lip-Bu Tan after earlier calling for his resignation; no decision announced.
Micron Technology (MU) – JPMorgan raises target to $185 on strong AI-related memory chip demand.
Nvidia (NVDA) – China discourages use of H20 AI chips for government-related work.
On Holding (ONON) – Raises annual sales forecast on strong brand-driven demand; premium positioning reinforced.
Peabody Energy (BTU) – Will decide Aug. 19 whether to proceed with $3.78B Anglo American coal mine deal after operational issues.
Pfizer (PFE) & Merck (MRK) – Padcev + Keytruda combo improves bladder cancer survival in late-stage trial.
Rolls-Royce (RR.L) – Sells UK pension fund to PIC for £4.3B.
Rumble (RUM) – Weighs ~$1.17B offer for Northern Data AG.
Sinclair (SBGI) – Launches strategic review; may separate Ventures portfolio.
Smithfield Foods (WH Group – 288.HK) – Raises annual profit forecast on resilient packaged meat demand.
Spirit Airlines (SAVE) – Warns of going-concern doubts amid weak leisure travel demand and cash strain.
Sun Life Financial (SLF:CA) – CIBC cuts target price to C$88 from C$91 after U.S. dental forecast reduced due to Medicaid uncertainty.
Targa Resources (TRGP) – RBC raises target to $208 on stronger Permian volume outlook.
Venture Global LNG (private) – Beats Q2 revenue estimates after LNG permit moratorium lifted.

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