Global Market Update
Canadian Markets
Canada’s main stock index slipped as investors trimmed positions ahead of a busy week of economic and corporate events. Gold prices weakened, while oil prices inched higher, adding to mixed sentiment. Shares of Air Canada weighed on the market after the airline withdrew its third-quarter and full-year earnings guidance, citing uncertainty around fuel costs and demand trends while the company undergoes a strike by flight attendants.
Housing data is also raising economnic red flags., as major cities like Vancouver are seeing foreclosures rising rapidly, a development that could signal a correction in overheated real estate markets. While softer housing prices may be a relief for prospective buyers, the trend poses broader risks. Housing has been a key driver of Canadian economic growth in recent years, supporting construction jobs, consumer spending, and government revenues. A downturn could drag on employment, tax receipts, and financial stability, adding another headwind to an economy already grappling with slower growth.
American Markets
In the U.S., stock traded mixed as investors digested developments in Ukraine peace talks and turned their attention to the upcoming Jackson Hole Symposium, where central bankers are expected to give signals on future policy. July housing starts showed a 4.7 percent increase in July, while a , inflation reading is on the table for Tuesday, and June retail sales on Friday.
The backdrop of possible stagflation—a toxic mix of weak growth and elevated inflation—remains a top concern for global markets. According to a Bank of America Global Research survey, roughly 70% of investors expect stagflation over the next 12 months, with many adjusting portfolios to brace for the potential hit from U.S. tariffs and policy uncertainty.
European Markets
In Europe, stocks declined as investors looked to a Ukraine deal, and how that could impact markets. Germany reported a 7.9% rise in home building permits for June, while Shares in Novo Nordisk rose after Wegovy gets American approval for the treatment of liver disease.
UK markets moved modestly higher, as housing data there showed prices slipping, but sales volumes spiking to a five-year high. Still, underlying figures continue to point to a slowing UK economy, with weaker consumer spending and business activity dampening outlook, in which traders are pricing in a rate cut at the next BoC meeting, slightly lifting stocks.
Corporate Stock News
Air Canada suspended its Q3 and annual profit forecasts as striking flight attendants refused a government-backed order to return to work. The standoff, involving 10,000 cabin crew, has left hundreds of planes grounded and set up a rare confrontation with the Canadian government.
Albemarle Corp – JPMorgan raised its target to $80 from $60 as Chinese lithium prices spiked after CATL’s mine suspension and government reserve checks.
Alphabet Inc (Google) agreed to pay a $36 million fine in Australia after regulators found it hurt competition by paying major telcos Telstra and Optus to pre-install Google Search on Android phones between 2019 and 2021, excluding rival search engines.
Berkshire Hathaway Inc – TD Cowen cut its target to $718,000 from $727,000, citing slowing premium growth, weaker rail and energy demand, and softening insurance trends.
Dollar General Corp – Jefferies lifted its target to $130 from $126 on stronger quarterly foot traffic and sales/EPS above consensus.
Dollar Tree Inc – Jefferies raised its target to $130 from $106, highlighting stronger spend per trip, margin gains, and improved guidance.
Federated Hermes Inc merged its UK property funds with Legal & General’s Managed Property Fund, creating a £4.7 billion portfolio. The deal transfers much of Federated Hermes’ unitholder investments to L&G’s real estate portfolio.DLYT
Lululemon Athletica Inc had its target price cut to $298 from $321 by TD Cowen, citing tougher macro conditions, rising competition, weakness in non-core categories, and lowered earnings estimates below consensus.
Oracle Corp will see Foxconn and SoftBank manufacture data center equipment at Foxconn’s former EV plant in Ohio as part of the Stargate project, a joint venture involving OpenAI, Oracle, and SoftBank to advance U.S. AI infrastructure.
Ross Stores Inc – Jefferies increased its target to $170 from $150 on improved foot traffic and stronger same-store sales projections.
Soho House & Co Inc will be taken private by a group led by MCR Hotels for about $2.7 billion including debt. Shareholders will receive $9 per share, a 17.8% premium, after the stock lost nearly half its value since its 2021 IPO.
Stantec Inc had its target price raised to C$160 from C$155 by Raymond James following solid results, an acquisition in New Zealand, higher guidance, and continued strength in water and infrastructure.
Tesla Inc has cut UK leasing prices by over 50% from a year ago, offering up to 40% discounts to leasing firms amid storage shortages. Tesla’s UK sales in July plunged 60% to 987 units, according to SMMT data.
Wynn Resorts Ltd and peers Caesars and Treasure Island won dismissal of a consumer lawsuit alleging collusion on Las Vegas hotel pricing. A U.S. appeals court ruled that using the same pricing software isn’t enough to prove anti-competitive behavior.
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The housing data you mentioned is especially concerning — foreclosuresBlog comment creation rising in cities like Vancouver could have ripple effects far beyond real estate. Since housing has been such a major pillar of Canada’s economy, a sustained downturn might weigh on jobs and consumer confidence just as other sectors face uncertainty. It’ll be interesting to see whether policymakers address this risk at upcoming economic forums like Jackson Hole.
The housing data out of Vancouver is particularly concerning—rapidly rising foreclosures could be a sign of broader instability in a market that’s already been a major driver of Canadian economic growth. It’s interesting to see how these trends are playing out alongside the uncertainty in gold and oil prices, especially with Air Canada’s earnings guidance withdrawal adding to the market’s cautious tone. The upcoming Jackson Hole symposium will likely offer more clarity, but for now, it seems like investors are staying on edge.