Global Market Update
Canadian Markets
Canadian markets moved higher today, buoyed by rising gold prices and a decline in oil prices. However, Canadian venture capital deals have plunged to levels not seen since the pandemic, signaling a cautious investment environment. Meanwhile, recent minutes from the Bank of Canada reveal a divided central bank on the effectiveness of monetary policy amid ongoing trade tensions and tariffs.
American Markets
In the U.S., stocks showed modest gains following Tuesday’s inflation report, which raised hopes for a Federal Reserve interest rate cut in September. This optimism helped steady the market despite lingering uncertainties.
In the U.S., stocks posted modest gains as investors reacted positively to Tuesday’s inflation data, which came in slightly cooler than expected. The Consumer Price Index (CPI) report signaled that inflationary pressures may be easing, strengthening the case for a potential interest rate cut by the Federal Reserve as early as September. Traders interpreted the data as a sign that the Fed may finally be able to pivot toward a more accommodative monetary policy without risking a resurgence in inflation. This renewed optimism helped stabilize equities across major indexes, even as broader concerns remain over global growth, corporate earnings, and ongoing geopolitical tensions.
European Markets
European markets advanced, with the STOXX 600 index climbing as technology and defense sectors rebounded from recent declines. However, Russia’s GDP growth slowed considerably, dropping to just 1.1% in the second quarter, reflecting ongoing economic challenges.
European investors are increasingly favoring local exchange-traded funds (ETFs) at a record pace, moving away from U.S. stocks. This shift underscores a growing confidence in regional assets despite global market volatility.
In Spain, inflation rose to 2.7% in July, up from 2.3% the previous month, suggesting persistent upward pressure on consumer prices.
Meanwhile, UK stocks also gained, supported by the British pound strengthening to its highest level since July. This currency rally was driven by reduced expectations for a rate cut from the Bank of England, reflecting a more optimistic economic outlook.
Corporate News
Air Canada: The Canadian Union of Public Employees, representing over 10,000 cabin crew members, issued a 72-hour strike deadline following unsuccessful pay negotiations. The strike is scheduled to begin early Saturday. Despite a 38% compensation increase offer over four years, the union rejected it as insufficient.
AT&T Inc: The company and Headwater Research settled a patent lawsuit related to wireless technology in a Texas federal court, pausing the case before the planned trial.
Bank of New York Mellon Corp: Singapore fintech OpenEden appointed the firm as investment manager and custodian for its tokenized U.S. Treasury fund, which holds nearly $300 million in assets.
CAVA Group Inc: Shares fell after the Mediterranean restaurant chain lowered its annual same-store sales growth forecast, with second-quarter sales rising only 2.1%, below expectations.
Cenovus Energy Inc & MEG Energy Corp: Cenovus is in talks with Canadian Indigenous groups for a joint purchase of MEG Energy, involving a potential C$2 billion Indigenous stake supported by government financing.
Chevron Corp: Chevron resumed Venezuelan crude exports under a new U.S. Treasury license after suspending shipments in April, marking the first export from the Jose terminal under this authorization.
CoreWeave Inc: Shares declined after the Nvidia-backed AI infrastructure company posted a larger-than-expected loss due to soaring operating expenses and concerns over profitability and debt coverage.
Eli Lilly & Co: Launched an easy-to-use injector pen for its weight-loss drug Mounjaro in India, priced at 14,000 rupees for the starting dose, intensifying competition with Novo Nordisk.
Exxon Mobil Corp: Plans to invest up to $21.7 billion in deepwater oil and gas exploration in Trinidad and Tobago, marking its return to the country after 20 years.
Goldman Sachs Group Inc: CEO David Solomon faced public criticism from President Trump, who questioned the bank’s economic outlook and leadership amidst tariff disputes.
EQB Inc: BMO downgraded the rating from outperform to market perform and lowered the target price from C$115 to C$111 due to concerns about loan growth and credit challenges.
Insmed Inc: Jefferies raised the target price from $129 to $148 after FDA approval for new doses of its drug Brisupri, tapping into the bronchiectasis market.
Nvidia Corp: Piper Sandler increased its target price to $225 from $180, expecting strong growth driven by China revenues in the second half of the year.
ONEOK Inc: RBC cut the target price from $94 to $88, citing lower adjusted EBITDA estimates due to commodity price headwinds expected in 2026.
Palo Alto Networks Inc: Piper Sandler raised the rating to overweight and target price to $225 from $200, highlighting the positive impact of acquiring CyberArk on free cash flow margins.
Saputo Inc: CIBC increased the target price to C$36 from C$29 after strong first-quarter results and improving fundamentals across all segments.
Sapiens International Corporation NV: Advent International agreed to acquire the Israeli software firm for $2.5 billion, focusing on AI-driven solutions for the insurance industry.
TPG Inc: Alongside partners, offered HK$9.25 per share to take Kangji Medical private, valuing the company at HK$11.17 billion, a significant premium over recent trading prices.
Union Pacific Corp: A train derailment near Gordon, Texas involved approximately 35 cars and is being treated as a hazardous materials situation, though no leaks were reported.
Venture Global Inc: Won a legal battle against Shell over LNG delivery failures, with its stock price rising after the ruling favored Venture Global.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
The recent inflation data is definitely a positive development for the markets, and the potential Fed rate cut could help stabilize things further. However, with global growth concerns still looming, it’ll be interesting to see how the broader market responds in the coming months.
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