Global Markets
Canadian Markets
Canada’s TSX index moved higher, supported by strength in financial stocks even as Oil prices slid nearly 2% on signs of weakening global demand, while gold prices eased modestly, reflecting a pullback in safe-haven demand as investors weighed shifting monetary policy expectations.
Canadian households grew more financially stretched in the second quarter of 2025, as Statistics Canada reported that the debt-to-disposable income ratio rose, reflecting mounting pressure from high interest rates, elevated housing costs, and weak income growth. The measure, which tracks how much debt Canadians owe for every dollar of disposable income, ticked up compared to the previous quarter, underscoring rising financial vulnerabilities despite signs of economic slowdown. Analysts note that much of the increase stems from mortgage debt, as households continue to feel the effects of past borrowing at record-high home prices. At the same time, consumer credit growth remains strong, suggesting that households are relying more on credit cards and lines of credit to cover day-to-day expenses amid rising costs.
American Markets
U.S. stocks climbed with all three indexes hit intraday all-time highs. Markets looked past a hotter-than-expected August CPI monthly increase of 0.4%, focusing instead on the annual rate of 2.9%, which met expectations, and a core CPI rise of 0.3% monthly and 3.1% annually, also in line. The inflation data, combined with a surprise jump in weekly jobless claims reinforced bets that the Federal Reserve will cut rates by 0.25% next week, with rising odds of a 0.50% cut. The 10-year Treasury yield fell to 4%, supporting equities. Data released showed that American household net worth rebounded to a new record high in Q2.
European Markets
European shares moved higher in choppy trade, led by gains in defense stocks, as markets positioned ahead of the European Central Bank’s policy decision. Investors widely expect the ECB to hold rates steady, with rising conviction that the central bank is finished cutting rates for this cycle. Economic signals, however, remained mixed. German business insolvencies rose 12.2% in the first half of the year, reflecting mounting stress on companies from sluggish demand and higher borrowing costs. In France, the INSEE statistics agency forecast the economy to grow 0.8% in 2025, pointing to resilience in manufacturing and services after a period of weakness.
UK equities posted strong gains as investors pushed industrial and banks stocks higher on positive news and digested a wave of corporate earnings releases. Still, concerns lingered in the housing sector, where the RICS survey showed a slowdown in activity, with buyers retreating amid elevated mortgage rates and economic uncertainty. UK houses prices are set to drop further as market activity declines.
Corporate Stock News
Alaska Air Group Inc: Hawaiian Airlines CEO Joe Sprague will retire effective October 29, succeeded by Diana Birkett Rakow, who will report to CEO Ben Minicucci.
Alibaba Group Holding Ltd: Plans to raise $3.2 billion via a zero-coupon convertible bond to fund international expansion and strengthen cloud computing.
Apple Inc: Apple TV+ received 81 Emmy nominations this year, with “Severance” and “The Studio” leading in drama and comedy categories.
Bank of America Corp: Merrill Wealth Management will expand credit offerings for high-net-worth clients, with client loans up $16 billion in Q2.
Barrick Mining Corp & Carcetti Capital Corp: Barrick will sell its last producing Canadian gold mine, Hemlo, to Carcetti Capital for up to $1.09 billion; deal expected to close in Q4.
Boeing Co: Boeing and the machinists union reached a tentative deal ending a five-week strike, including a 24% wage increase and $4,000 ratification bonus.
Carlyle Group Inc & Starbucks Corp: Global and regional investment firms prepare final offers for a controlling stake in Starbucks’ China operations; binding bids due early October.
Chevron Corp: Invested $30 million to set up a fully automated lubricants blending plant in Pakistan, expanding sales beyond 70 million liters annually.
Chipotle Mexican Grill Inc: Plans to expand into Asia with new restaurants in South Korea and Singapore through a joint venture with SPC Group.
Coupang Inc: U.S. court dismissed shareholder lawsuit alleging fraud during and after the company’s 2021 IPO.
Ecovyst Inc: French energy firm Technip Energies agreed to buy Ecovyst’s Advanced Materials & Catalysts business for $556 million; expected to close in Q1 2026.
Figure Technology Solutions Inc: Raised $787.5 million in a U.S. IPO, selling 31.5 million shares at $25 each; valued at $5.29 billion, trading under ticker “FIGR”.
Goldman Sachs Group Inc: CEO David Solomon highlighted that M&A activity is up 32% YoY, with deals over $10 billion up 100%.
Groupe Dynamite Inc: TD Cowen raised target price to C$55 after better-than-expected Q2 results; multiple other analysts also issued target price upgrades.
JPMorgan Chase & Co: Accelerating hiring across APAC corporate banking, targeting a 20% increase in headcount next year.
LB Pharmaceuticals Inc: Raised $285 million in a U.S. IPO; sold 19 million shares at $15, debuting on Nasdaq under ticker “LBRX”.
Newmont Corporation: Voluntary delisting of common shares from TSX due to low trading volumes; maintains NYSE listing.
Oracle Corp: Shares rose on AI cloud gains; Oracle signed $300 billion deal with OpenAI for computing power.
Potbelly Corp: RaceTrac agreed to acquire Potbelly for $566 million, $17.12 per share; directors and officers agreed to tender shares.
Ralph Lauren Corp: Unveiled spring 2026 collection ahead of NY Fashion Week, emphasizing bold designs and monochrome palettes.
Chewy Inc: JPMorgan cut target price to $45 from $47 due to margin compression concerns, despite strong Q2 results.
Rapport Therapeutics Inc: Jefferies raised target price to $50 from $35 after positive Phase 2 trial results for focal epilepsy drug RAP-219.
Tapestry Inc: Jefferies raised target price to $125 from $120 following positive investor day and outlook for durable growth.
Toronto-Dominion Bank: Taylan Turan named COO; multiple executive appointments announced ahead of investor day.
Victoria’s Secret & Co: Jefferies raised target price to $30 from $26, citing strong product innovation and disciplined execution.
Virtu Financial Inc: Jefferies cut target price to $49 from $51 due to market volatility affecting Q3 EPS estimates.
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