Global Market Update
Canadian Markets
Canada’s TSX was higher on Thursday, lifted by gains in the energy sector as crude oil prices pushed higher. The rally in energy shares helped offset weakness in gold miners, as bullion prices dropped amid shifting investor sentiment. Recent data reveals that 75% of Canadians feel financially worse off compared to previous years, and a majority expect their financial challenges to persist. This pessimism continues to weigh on consumer confidence and spending outlooks.
American Markets
American markets were volatile as investors digested the early-stage trade negotiations between the United States and Japan. Investors are hoping for a framework that could ease tensions and reduce barriers, though no breakthroughs are expected in the near term. Trump reiterated his disdain for Fed Chair Powell’s monetary policy, and his unwillingness to cut interest rates immediately to mitigate the tariff turbulence.
European Markets
European markets finished the day mixed. Investors focused on a new wave of corporate earnings and awaited the European Central Bank’s (ECB) policy decision later in the day. The euro slipped in anticipation of a widely expected interest rate cut from the ECB, a move aimed at revitalizing growth amid signs of slowing economic momentum.
In the UK, stocks showed modest gains, largely driven by energy stocks. The British pound rose as well, buoyed by optimism around energy prices and cautious expectations surrounding fiscal policies. Political headlines also stirred discussion: News surfaced that Britain must consider repealing certain hate speech laws if it hopes to secure a trade deal with the United States under the Trump administration.
Corporate Stock News
Abbott Laboratories: Jefferies raises target price to $137 from $135, after the company reaffirmed its guidance for FY2025 despite ongoing tariff uncertainties.
Alphabet Inc, Meta Platforms Inc & PDD Holdings Inc: Chinese online marketplace Temu and fast-fashion retailer Shein, two of the biggest advertisers on U.S. social media, are sharply cutting their U.S. digital ad spending, industry data show, in a blow to tech companies such as Meta’s Facebook and YouTube. Temu and Shein plan to raise product prices next week as the removal of the “de minimis” exemption on import tariffs increases costs, while cutting ad spending on most platforms.
Aritzia Inc: CIBC cuts target price to C$57 from C$75, as the brokerage lowered its 2026 estimates for the company over tariff-related risks.
AstraZeneca Plc: The firm’s Alexion Pharmaceuticals was sued in Massachusetts federal court for allegedly misusing its patents to extend its monopoly on blood-disease drug Soliris. EmblemHealth claimed the scheme violated U.S. antitrust law and could cause overpayments of over $2 billion.
Barclays Plc: Barclays has agreed to terms for Brookfield Asset Management to buy most of its British payments business. Barclays plans to invest 400 million pounds in a new standalone entity, and Brookfield may acquire around 70% ownership within three years.
Blackstone Inc: Posted an 11% jump in first-quarter profit, with distributable earnings of $1.41 billion, or $1.09 per share, up from $1.27 billion, or 98 cents per share. Blackstone brought in $61.64 billion of inflows in the quarter, growing assets under management to $1.17 trillion. CEO Stephen Schwarzman said the firm is “well positioned.”
BP Plc: BP’s board faces re-election pressure amid activist shareholder opposition. Chairman Helge Lund plans to step down by 2026, but a weak vote may expedite his exit. Proxy advisors ISS and Glass Lewis recommended voting for BP’s 12-member board.
Cardinal Energy Ltd: RBC raises rating to outperform from perform and target price to C$7.50 from C$7, expecting the Reford project to boost pre-tax cash flow.
Cognex Corp: Daiwa Capital Markets cuts rating to outperform from buy and target price to $27 from $40, citing anticipated softness in logistics spending and potential delays from Apple’s reshoring gains.
CSX Corp: Reported Q1 revenue of $3.42 billion, missing analysts’ estimate of $3.47 billion. Profit and revenue were lower due to operational challenges and declines in coal and fuel surcharge revenue.
Eli Lilly and Co: Said its experimental pill, orforglipron, resulted in 8% weight loss and lower blood sugar in type 2 diabetes patients in a late-stage trial. Lilly plans to file for approval by year-end. Orforglipron is a synthetic oral GLP-1 targeting drug.
Fidelity National Information Services Inc. & Global Payments Inc: Global Payments will buy Worldpay from FIS and GTCR for $22.7 billion. Separately, FIS will acquire Global Payments’ Issuer Solutions business in a $13.5 billion deal.
Ford Motor Co: Recalling over 148,000 vehicles in the U.S. in two recalls. About 123,611 vehicles, including 2017–18 F-150, Expedition, and Lincoln Navigator models, have fluid leaks that could reduce braking performance.
Intel Corp: Will require licenses to sell some advanced AI processors to China, according to the Financial Times. The licensing applies to chips exceeding specified bandwidth limits under new U.S. export rules.
Intuit Inc: Scotiabank raises to sector Outperform from sector Perform and target price to $700 from $600, citing increasing likelihood of a shutdown of the IRS Direct File program.
Kinder Morgan: Left annual profit forecast unchanged, expecting adjusted profit of $1.27 per share in 2025. Posted Q1 profit of 34 cents per share, just below estimates. Despite tariff uncertainty, it remains optimistic about natural gas demand.
Metro Inc: CIBC raises target price to C$106 from C$91, following strong Q2 results and expectations of sales growth driven by the Buy Canadian movement.
Netflix Inc: Piper Sandler assumes coverage with overweight rating and a target price of $1100, citing a compelling entertainment offering and resilient subscription model.
Nvidia Corp: Rosenblatt Securities cuts target price to $200 from $220 due to export restrictions on H20 chips to China and U.S.-designated “D5” nations. CEO Jensen Huang reaffirmed China is a key market, hoping to continue cooperation.
Taiwan Semiconductor Manufacturing Co Ltd: Gave a bullish annual outlook driven by AI demand. Expects Q2 revenue of $28.4B–$29.2B vs. $20.8B a year earlier. Q1 net profit rose 60% YoY to $11.1B, exceeding estimates.
Truist Financial Corp: Reported a drop in Q1 profit due to weakness in investment banking and trading. Income from those areas fell 15.5% to $273M. Net interest income rose 3.8% to $3.56B. Adjusted profit was 87 cents per share, down from 91 cents.
UnitedHealth Group Inc: UNH cut its 2025 profit forecast to $26–$26.50 per share from $29.50–$30, citing higher-than-expected Medicare-related costs. Analysts expected $29.73 per share. Shares fell in premarket trading.
Wipro Ltd: Shares fell after the company forecast Q1 revenue to drop 1.5%–3.5% sequentially. CEO Srini Pallia said global uncertainties signal another tough year amid tech spending pressures.
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.
