Global Markets
Canadian Markets
Canada’s TSX edged lower as oil prices fell, and a rise in gold prices failed to support the weakness of trade concerns. The Canadian government announced the country’s efforts to advance free trade negotiations with Mercosur—a key South American bloc that includes Brazil, Argentina, Paraguay, and Uruguay. The push is part of Ottawa’s broader strategy to diversify trade relationships away from heavy reliance on the American markets. First Nations Chiefs meet up this week to unite against the Carney government’s imposition of the “One Canadian Economy Act”, which could potentially hamper Canada’s economic growth plans, particularly if it leads to project delays, legal uncertainty, and investor hesitation as a consequence.
American Markets
U.S. markets traded mixed as investors braced for potential volatility ahead of the August 1st tariff implementation date, a deadline set by President Trump for additional trade measures. Trump suggested that tariffs on European imports could be raised even further, amplifying fears of an escalation within the trade conflict. Meanwhile, hedge funds recorded record inflows during the first half of 2025, as investors chase returns amid rate uncertainty and demand for alternative strategies in a shifting macroeconomic landscape.
European Markets
European equities drifted lower as investors digested a slew of corporate earnings reports while remaining cautious ahead of possible American tariff increases. German economic indicators remained gloomy—housing starts fell in May, highlighting continued weakness in the construction sector, and producer prices declined 1.3% year-over-year in June, pointing to disinflationary pressures in Europe’s largest economy.
UK stocks gained, buoyed by hopes of monetary policy easing after a series of dismal economic readings this week. Recent data showed a sharp rise in unemployment, increasing speculation that the Bank of England may cut interest rates in the near term to support the faltering economy. The British pound weakened further on the soft data and dovish policy expectations, providing an added boost to stocks.
Corporate News
Alphabet Inc
A Texas judge agreed to delay a jury trial concerning Google’s digital advertising practices as a related antitrust case in Virginia nears a final ruling. The decision follows a previous finding that Google illegally monopolized ad server markets.
Archer Daniels Midland Co
ADM is closing a pet food plant in Brazil as part of cost-reduction and operational streamlining. The company cited misalignment with future operational needs.
BHP Group Ltd
BHP announced cost overruns of up to $1.7 billion and a potential two-year delay in its Jansen potash project in Canada. Despite this, the miner reported record copper and iron ore output in fiscal 2025.
BP PLC
BP has agreed to sell its U.S. onshore wind business to LS Power as part of a strategic shift under CEO Murray Auchincloss to focus on oil and gas over renewables.
Canadian National Railway Company
Raymond James raised its target price for Canadian National to C$162 from C$150, citing anticipated traffic growth in the latter half of 2025 due to improving macroeconomic conditions.
Chevron Corp, Exxon Mobil Corp & Hess Corp
Chevron will move ahead with its $53 billion acquisition of Hess after winning a legal battle with Exxon Mobil over rights to Guyana’s Stabroek Block. The U.S. FTC also reversed previous bans on target company CEOs joining the boards of Chevron and Exxon, citing regulatory overreach.
Citigroup Inc
Citigroup and Ant International have launched a pilot AI program to assist clients in managing foreign exchange risk. The platform has already helped a major Asian airline reduce hedging costs.
Cosan SA
Cosan confirmed it is in non-binding talks with fuel retailer Vibra to potentially sell its lubricants division, Moove, following reports by Brazil Journal.
Gartner Inc
Jefferies cut its target price on Gartner to $390 from $440, citing ongoing struggles in its lead generation operations.
Heartflow
The healthcare company filed for an IPO on the Nasdaq under the ticker “HTFL” despite widening losses. Proceeds will be used for debt reduction, R&D, and corporate expenses.
Meta Platforms Inc
Meta has hired former Apple AI researchers Mark Lee and Tom Gunter for its Superintelligence Labs. Meanwhile, Russian lawmakers warned WhatsApp may soon face restrictions in Russia.
Microsoft Corp
A U.S. senator has requested details from the Pentagon on Microsoft’s use of Chinese engineers in military cloud services, raising concerns about national security oversight.
Netflix Inc
Netflix beat Q2 earnings expectations, helped by the final season of “Squid Game.” The company posted $7.19 EPS and raised its 2025 revenue forecast to $44.8B–$45.2B. Netflix also announced the use of generative AI in visual effects for the first time. TD Cowen raised its price target to $1,450 from $1,440.
Norfolk Southern Corp & Union Pacific
Union Pacific is exploring a potential merger with Norfolk Southern, a deal that would create a $200 billion freight rail giant but face heavy regulatory scrutiny. Talks are preliminary.
Nvidia Corp
Chinese Commerce Minister Wang Wentao met with Nvidia CEO Jensen Huang, expressing hopes for deeper AI collaboration. Nvidia confirmed interest in expanding cooperation with Chinese partners.
PepsiCo Inc
JPMorgan raised its price target on PepsiCo to $157 from $139, citing strong second-quarter earnings.
S&P Global Inc
Jefferies raised its target price to $625 from $590, pointing to revenue strength in the company’s Indices and Ratings divisions.
Sarepta Therapeutics Inc
Shares fell after it was reported a third patient death linked to its Elevidys gene therapy, fueling regulatory concerns over the treatment’s safety.
Superior Plus Corp
TD Cowen cut its target price on Superior Plus to C$8.50 from C$9.50, citing weak seasonal Q2 and Q3 performance forecasts and broader macroeconomic headwinds.
Talen Energy Corp
Talen announced it will acquire two power plants in Pennsylvania and Ohio for a combined $3.5 billion. The company expects the acquisitions to boost free cash flow per share by over 40% in 2026.
Wells Fargo & Co
Concerns over China’s treatment of foreign firms re-emerged after a Wells Fargo employee was barred from leaving the country, prompting diplomatic and business community unease.
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.
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