Global Market Update
Canadian Markets
Canada’s TSX moved lower, though losses were cushioned by strength in the commodity sector. Rising gold and oil prices provided key support, as investors sought safe havens amid ongoing global uncertainty and rising geopolitical tensions.
The Bank of Canada held its benchmark interest rate steady at 2.75%, in a widely expected move. Policymakers emphasized caution, noting that inflation remains a key concern and that premature rate cuts could re-ignite price pressures. The Bank of Canada highlighted that ongoing uncertainty surrounding U.S. tariffs and trade policy has made it impossible to provide reliable economic forecasts, signaling a more reactive stance moving forward.
American Markets
In the U.S., equity markets declined across the board. Trade tensions remained front and center, with investors increasingly concerned over the long-term economic impact of tariffs. The Federal Reserve Chair, Jerome Powell warned of the immediate “challenging” impacts arising from the uncertainty around the Federal government’s trade policy. Technology stocks came under pressure, led by Nvidia, which dropped sharply in intraday trading after the company disclosed significant charges linked to new U.S. export restrictions on advanced semiconductors to China. The news weighed on the broader tech sector and added to concerns about global supply chain disruption.
European Markets
European markets ended mixed. The Dutch chipmaker ASML warned that extended U.S. tariffs were creating significant uncertainty for its business outlook in 2025 and 2026, dragging down the European tech sector. Broader market sentiment in the region was cautious, though energy stocks helped limit declines.
In the UK, equities managed modest gains, driven by a rebound in the energy and mining sector. Falling inflationary data also supported market sentiment, as the UK’s inflation rate dropped to 2.6% — closer to the Bank of England’s 2% target. This has increased speculation that the central bank may begin cutting interest rates in the coming months, potentially giving a boost to domestic demand and corporate margins. Albeit it is thought that the drop in inflation might only be temporary.
Corporate Stock News
Alphabet (Google): Facing a UK class action lawsuit seeking up to $6.6B, alleging abuse of dominance in online search by pre-installing apps and paying Apple for default status.
Applied Materials, KLA, Lam Research, Onto: New U.S. tariffs could cost U.S. semiconductor equipment makers over $1B annually due to lost overseas sales and compliance costs.
ASML Holding NV: Warned tariffs are creating uncertainty for 2025–26 outlook; Q1 net bookings missed estimates, but maintained annual guidance.
Bank of America: Piper Sandler cut target price to $42 from $45 due to lower bank equity valuations.
Citigroup: RBC cut target price to $78 from $85 citing profitability concerns and economic outlook.
Groupe Dynamite Inc: Barclays cut target price to C$14 from C$19 due to tariff and geopolitical uncertainty.
Harley-Davidson: H Partners plans to remove 3 board members including CEO, citing sales decline and poor stock performance.
Interpublic Group & Omnicom Group: Omnicom missed Q1 revenue estimates; deal with Interpublic expected to drive growth and synergies in H2.
J.B. Hunt: Q1 profit dropped 7.6% due to trucking and brokerage weakness; tariffs and oversupply worsen the “freight recession.”
KKR: Acquiring German IT firm Datagroup for $508M in all-cash deal; Datagroup to be delisted; founder to retain joint control.
Monster Beverage: Appeals court upheld $311M win against Bang Energy for false advertising about its drink contents and benefits.
Nvidia: NVDA announced $5.5B in charges due to new U.S. chip export restrictions to China; reportedly didn’t inform customers in advance. Piper Sandler cut target price to $150 from $175.
Pfizer & Novo Nordisk: Included in Trump’s executive order pushing Medicare drug price negotiation reforms; aims to lower healthcare costs.
Tesla: Tariffs forced suspension of Cybercab and Semi component shipments from China, risking delays in planned production.
United Airlines: Issued cautious profit outlook due to potential recession; bookings remain stable; warns economic conditions are unpredictable.
Well Health Technologies: CIBC cut target price to C$5 from C$7 due to market conditions and an investigation into its subsidiary.
Wipro: Posted weaker-than-expected Q4 revenue; forecasted 1.5–3.5% QoQ decline due to macroeconomic caution.
Xylem: Stifel Nicolaus cut teh target price to $140 from $150, citing modest tariff-related uncertainty.
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.
