Global Markets
Canadian Markets
Canada’s TSX Composite traded mixed, reflecting a divergence between commodity strength and technology weakness. Resource-linked sectors, including energy and metals moved higher as underlying commodity prices firmed. However, gains were partially offset by a sharp selloff in technology shares, led by Shopify, which declined nearly 10% after reporting earnings that fell short of investor expectations.
Investor sentiment was further dampened by reports suggesting that President Trump could potentially withdraw from the Canada–U.S.–Mexico Agreement (CUSMA). Such a move would materially increase trade uncertainty and pose structural risks to Canada’s export-driven economy. With approximately 40% of Canada’s GDP directly tied to trade with the United States, any disruption to tariff-free access could negatively impact manufacturing, energy exports, supply chains, and cross-border investment flows, amplifying macroeconomic vulnerability.
American Markets
U.S. stocks traded lower despite a generally positive January employment report. Nonfarm payrolls rose by 130,000, and the unemployment rate declined to 4.3%, signaling ongoing resilience in the labour market. The data reinforced the view that employment conditions remain stable, even following prior softer labor prints and recent corporate layoff announcements. However, markets interpreted the strength as potentially limiting the Federal Reserve’s flexibility to ease monetary policy in the near term, which pressured stocks, particularly those exposed to rate-sensitive sectors.
European Markets
European markets declined, led by losses in technology and financial stocks. Ongoing concerns that next-generation artificial intelligence models could compress margins for traditional software and enterprise solution providers weighed on investor sentiment. Financials also faced pressure amid shifting rate expectations and slower growth dynamics. In France, economic growth is projected to remain subdued, with forecasts pointing to quarterly expansion of just 0.2% to 0.3%, underscoring persistent structural stagnation in the eurozone’s second-largest economy.
UK stocks outperformed, with the FTSE 100 advancing more than 1% to reach a new record high. Gains were driven primarily by housebuilders and energy stocks, benefiting from improved commodity pricing and relative valuation support. Economists expect the UK economy to have posted modest growth in the final quarter of 2025, despite lingering uncertainty tied to fiscal policy and budget constraints. The resilience in large-cap, globally exposed firms helped lift the index, even as domestic economic momentum remains moderate.
Corporate Stock News
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