Global Markets
Canadian Markets
Canada’s TSX advanced by 0.5%, driven primarily by strength in financials and energy sectors as crude oil climbed toward $98 per barrel, reinforcing earnings expectations for producers and lending support to the broader TSX. However, this strength was partially offset by weakness in the mining sector as gold prices declined, highlighting a divergence within commodities.
Royal Bank of Canada sees a cautiously optimistic tone for the Canadian economy, noting that while structural headwinds remain, including uncertainty CUSMA renegotiations and the erosion of consumer purchasing power from elevated energy prices, it belives the economy is still positioned for gradual improvement in per-capita growth and labour market conditions, with unemployment expected to trend lower.
American Markets
American indices advanced broadly as the new earnings season began, reflecting improved near-term sentiment as earnings season began.
Goldman Sachs (GS).delivered a notable earnings beat driven by resilient trading and advisory activity, reinforcing the strength of capital markets activity. However, the stock closed lower despite the headline beat, as CEO David Solomon struck a more cautious tone, highlighting rising geopolitical risks linked to tensions involving Iran and signalling increased loan loss provisions.
As a result, the market response reflected a subtle shift in narrative, from earnings optimism to risk-awareness, suggesting that while index-level momentum remains intact, underlying sentiment is becoming more defensive beneath the surface strength, with the negative fundamentals starting to show in a more cautious manner..
European Markets
European markets moved lower as expectations for a quick resolution to Middle East tensions faded and rising bond yields reflected increasing bets on further tightening by the European Central Bank.
UK, equities also weakened amid deteriorating corporate confidence and warnings from Prime Minister Keir Starmer about significant and lasting economic damage stemming from the ongoing conflict on the UK economy
Corporate Stock News
Baker Hughes (BKR) sold its Waygate Technologies unit to Hexagon for approximately $1.45 billion as part of a strategic portfolio shift.
Badger Meter (BMI) had its target price cut by Jefferies to $190 from $200 on expectations of slower organic growth.
Eco Atlantic Oil & Gas (EOG:CA) agreed to sell a 60% interest in offshore Namibia blocks to BP (BP) for $2.7 million while retaining a partnership stake.
GFL Environmental (GFL:CA) is nearing a deal to acquire Secure Waste Infrastructure (SES:CA) in a transaction valued at over C$6 billion, implying a takeover premium.
IDEAYA Biosciences (IDYA) reported positive late-stage trial results for its cancer drug, significantly improving progression-free survival.
IBM (IBM) agreed to pay $17 million to settle a U.S. probe into diversity practices while denying wrongdoing.
McDonald’s (MCD) plans to launch new energy and specialty beverages in the U.S. as part of a competitive menu refresh strategy.
Nexstar Media Group (NXST) is shifting toward internally produced content, reducing reliance on major network programming.
Occidental Petroleum (OXY) was upgraded to Buy with a target increase to $71 from $69 on stronger oil price expectations.
Quebecor (QBR.B:CA) was upgraded to Outperform by National Bank, with the target raised to C$59 from C$57 on improved forecasts.
Replimune Group (REPL) was downgraded to Underweight by JPMorgan due to regulatory uncertainty.
Saputo (SAP:CA) was downgraded to Sector Perform by National Bank, citing limited upside.
Starbucks (SBUX) was upgraded to Hold by Jefferies, with the target raised to $92 from $86 on stabilizing operations.
StoneX Group (SNEX) saw its target price raised to $107 from $92 by Jefferies, supported by strong trading activity and recent acquisitions.
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