Global Market Update
Canadian Markets
Canada’s TSX index slipped for a second consecutive session, despite touching an intraday record high yesterday. The decline reflected mixed performance across commodities as oil gained over 2% on renewed supply concerns, while gold prices weakened, weighing on mining stocks. Investors are also looking ahead to the release of new GDP figures later this week, which are expected to show modest growth through the summer months.
American Markets
In the U.S., equities retreated broadly as investors engaged in profit-taking following a recent strong rally. The pullback was further driven by cautious comments from Federal Reserve Chair Jerome Powell yesterday, who emphasized ongoing uncertainties in the inflation outlook, and raised concern over stock market valuations, in particular flagging the AI-trade as bubbly. Investors are now turning their attention to the upcoming release of the core Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation gauge, for further clues on monetary policy direction.
European Markets
European stocks traded mixed, with commodity and defense stocks providing support, while luxury stocks underperformed as concerns over discretionary spending weighed on sentiment. In Germany, home prices showed signs of recovery, providing a potential turning point for the country’s long-depressed property sector. Additionally, Germany’s finance minister urged the EU to prioritize the purchase of European-made goods, signaling a push for greater regional economic resilience amid global competition.
In the UK, stocks advanced modestly, supported by gains in defense and copper producers. However, sentiment was tempered by a report from the OECD, which warned that the UK is expected to face the highest inflation rate among G7 nations in 2025. This outlook has heightened concerns over consumer spending power and long-term economic stability.
Corporate Stock News
Alibaba Group Holding Ltd (BABA) – Shares hit a four-year high after announcing a partnership with Nvidia (NVDA), global data center expansion, and new AI products, making AI a core priority alongside e-commerce.
Archer-Daniels-Midland Co (ADM) – Announced a joint venture with Alltech, contributing 11 U.S. feed mills as part of broader efforts to cut $500–$700 million in costs.
AutoZone Inc (AZO) – Jefferies raised its target price to $4,750 from $4,255, citing resilient sales and strong pricing power.
Biogen Inc (BIIB) – The FDA rejected approval for a higher-dose version of its SMA drug, requesting more technical details, though clinical data was not questioned.
Boeing Co (BA) & Palantir Technologies Inc (PLTR) – Boeing partnered with Palantir to deploy AI solutions across its defense and space units, aiming to standardize data analytics and enhance classified projects.
Eli Lilly and Co (LLY) – CEO Dave Ricks criticized UK drug pricing, warning the country could miss out on innovative medicines if pricing policies remain unchanged.
Emerson Electric Co (EMR) – Daiwa raised its target price to $153 from $150, expecting a rebound in 2026–27 driven by factory automation, reshoring, and strength in life sciences.
Ford Motor Co (F) – Recalled over 115,000 F-series trucks due to a steering shaft defect that could cause loss of control.
Hudbay Minerals Inc (HBM:CA) – Shut down its Constancia mill in Peru due to violent protests and blockades disrupting copper transport.
KBR Inc (KBR) – Plans to spin off its mission technology solutions unit by 2026, focusing on sustainable technologies and energy transition.
Lithium Americas Corp (LAC:CA) – Shares surged after reports that the Trump administration may take up to a 10% equity stake as part of a $2.26 billion loan renegotiation for Thacker Pass. Jefferies separately cut its target to $7 from $8, citing loan uncertainty.
Manulife Financial Corp (MFC:CA) – Its asset management unit agreed to acquire Schroders’ (SDR:LN) Indonesian business, pending regulatory approvals.
Meta Platforms Inc (META) – Expanded global access to its AI system Llama, with new partnerships including Microsoft (MSFT), Amazon’s AWS (AMZN), Oracle (ORCL), and Palantir (PLTR).
Methanex Corp (MEOH) – Jefferies raised its target to $53 from $45, expecting tighter supply-demand as methanol use rises in marine fuel and biofuels.
Micron Technology Inc (MU) – JPMorgan raised its target to $220 from $185 on strong data center and consumer demand. Separately, Micron beat earnings estimates, guiding Q1 revenue of $12.5B, boosted by high-bandwidth memory (HBM) demand for AI.
Oracle Corp (ORCL) – With OpenAI and SoftBank, announced five new U.S. AI data centers under the $500B Stargate project to deliver 10 GW of compute capacity.
Performance Food Group Co (PFGC) & US Foods Holding Corp (USFD) – Activist investor Scott Ferguson joined Performance Food’s board as discussions with US Foods advance on a potential merger.
Pfizer Inc (PFE) – Jefferies raised its target to $34 from $33 after acquiring MTSR for $4.9B, expanding into obesity treatments.
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It’s interesting to see how the TSX pulled back right after hitting an intraday high—feels like a classic case of investors locking in profits ahead of the GDP release. Powell’s caution on the AI-trade bubble also adds another layer of uncertainty, especially with the PCE numbers coming up. I think the next few sessions could really hinge on whether inflation data supports the idea of a softer Fed stance or not.