Global Markets
Canadian Markets
The TSX fell as investors increasingly priced in a potential Bank of Canada rate cut later this month following a disappointing jobs report on Friday that showed the economy shed 66 thousand positions. The decline was particularly pronounced in industrial stocks, which fell 1.2%, dragging the broader index lower. Investors are weighing the potential stimulative impact of lower interest rates against slowing economic activity, especially in manufacturing and resource-driven sectors.
American Markets
U.S. stocks traded higher as investors increased expectations that the Federal Reserve may implement a “Jumbo” rate cut at the next policy meeting, aiming to support the economy amid signs of a cooling labor market, reacting to Friday’s disappointing job creation data, which showed significantly fewer new positions added than expected. Technology and growth-oriented sectors led the gains, as investors sought higher-risk, higher-return assets that typically benefit from lower interest rates.
European Markets
European shares rose, despite ongoing political and economic uncertainty in France. In Germany, exports fell 0.6% month-over-month in July, driven primarily by a sharp decline in U.S. demand for German goods, as Washington’s tariffs on European imports weighed on trade flows. Additionally, a recent investor survey indicates that business and investor sentiment has plunged in September, reflecting concerns over slowing global demand, ongoing trade tensions, and uncertainty in key markets.
UK stocks gained, led by banking and industrial shares, as investors interpreted the recent weak U.S. job report as a potential signal for slower global interest rate hikes. The British pound strengthened against the U.S. dollar, reflecting the weak US jobs report, while ongoing concerns over rising inflation continue to cloud the possibility of a Bank of England rate cut.
Stock News
Air Canada – Flight attendants at Air Canada and Air Canada Rouge voted 99.1% against ratifying the company’s latest wage offer, rejecting it overwhelmingly. While the dispute remains unresolved, a legal strike or lockout is not possible under the agreement with the union. The wage issue will move to mediation, and if no deal is reached, to arbitration, ensuring flights will continue to operate without disruption.
Amex Exploration Inc – Haywood Securities raised its target price to C$4 from C$3, citing a strong economic assessment of the Perron gold project. The updated project data demonstrated compelling resource potential, supporting Haywood’s more bullish outlook on the stock.
Badger Infrastructure Solutions Ltd – TD Cowen initiated coverage with a Buy rating and a C$70 target price, noting the company’s market share growth potential in the infrastructure services sector. Analysts highlighted Badger’s strong competitive position and opportunities for expansion in both Canada and the U.S.
Cargojet Inc – Raymond James initiated coverage with an Outperform rating and a C$132 target price, forecasting that Cargojet will continue to benefit from long-term e-commerce demand growth. The firm expects Cargojet to generate healthy free cash flow from its leading position in time-sensitive air cargo services.
EchoStar Corp – EchoStar agreed to sell wireless spectrum licenses to SpaceX for $17 billion, providing a major boost to SpaceX’s Starlink satellite broadband network. Regulators had scrutinized EchoStar’s underused assets originally allocated for a 5G rollout, pushing the company toward divestment.
Goldman Sachs’ chief economist warned that the U.S. economy has slipped into a “stall speed”, with growth momentum weakening.
MEG Energy Corp & Strathcona Resources Ltd – Strathcona Resources raised its bid for MEG Energy, attempting to outbid Cenovus Energy for control of MEG’s prized Christina Lake oil sands project. MEG’s board had backed Cenovus’ earlier offer, which would consolidate Christina Lake with Cenovus’ adjacent assets, creating one of Canada’s largest oil sands producers. For Strathcona, winning MEG would create a pure-play oil sands producer with scale and visibility to rival larger peers.
Netskope Inc – The cybersecurity company is reportedly eyeing a valuation of up to $6.5 billion in its upcoming U.S. IPO, reflecting strong investor interest in cloud security amid rising cyber threats and enterprise IT spending.
Nutrien Ltd – The potash giant plans to sell its stake in Argentina’s Profertil fertilizer joint venture for US$600 million, as it looks to simplify operations and refocus capital on core businesses.
Nvidia Corp – Competition is rising from Chinese AI chipmakers, which are ramping up capabilities to reduce reliance on U.S. semiconductor technology. This intensifying rivalry poses a potential threat to Nvidia’s dominance in the global AI accelerator market.
Tesla Inc – Tesla’s U.S. market share dropped to its lowest level since 2017 in August, as buyers shifted toward new EV offerings from rivals. Analysts cited Tesla’s aging vehicle lineup as a key weakness, even as competitors expand aggressively with fresher models across multiple price ranges.
Trans Mountain Corp – The operator of Canada’s major pipeline expansion project expects dredging works at the Vancouver port to be completed by early 2027, enabling larger ships to load oil from the Trans Mountain Expansion (TMX). The development is expected to significantly boost Canadian crude export capacity.
U.S. mortgage rates fell close to their lowest level of the year following disappointing jobs data, easing pressure on housing affordability.
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.
Interesting to see how the Canadian and UBlog comment creation.S. markets are reacting so differently to similar labor market weakness. The Bank of Canada’s potential rate cut seems to be spooking investors, especially in industrials, while in the U.S. the same dynamic is fueling optimism in growth sectors. It really highlights how investor sentiment toward rate policy can diverge depending on the structure of each economy.