Global Markets
Canadian Markets
Canada’s TSX rose on Friday as the energy sector moved higher on rising oil prices, despite troubling economic indicators, as investors appeared to focus on the potential for policy easing in light of deteriorating labor market conditions.
Statistics Canada reported that the national unemployment rate rose to 7.0% in May, up from 6.9% in April. This marks the third consecutive monthly increase and the highest rate in nearly nine years — excluding the COVID-19 pandemic peak. The number of unemployed Canadians surged to 1.6 million, representing a 14% increase year-over-year.
Adding to the economic woes, Canada’s exports to the U.S. dropped sharply in April, contributing to a widening trade deficit that now stands at $7.1 billion, one of the largest on record. The dual blow of rising unemployment and weakening trade conditions could increase pressure on the Bank of Canada to consider rate cuts or fiscal stimulus in the near term.
American Markets
U.S. markets rallied after a better-than-expected jobs report reassured investors about the resilience of the American economy. The U.S. Bureau of Labor Statistics revealed that the economy added 139,000 jobs in May, surpassing forecasts of 125,000. While the figure is moderate compared to previous months, it signaled ongoing labor market strength, helping soothe recession concerns.
European Markets
European markets ended the session mostly higher but traded cautiously, as traders reduced risk heading into the weekend amid looming tariff tensions. In particular, concerns are growing over potential increases in U.S. steel tariffs, which could escalate transatlantic trade frictions.
UBS shares rose 4.5% after the Swiss government unveiled proposals for stricter capital requirements for systemically important banks. Investors interpreted the move as a step toward stabilizing the financial sector, especially in the wake of recent banking volatility in Europe.
UK markets advanced despite signs of weakening in the housing sector. Data from Halifax showed that house prices fell by 0.4% in May, a significantly sharper decline than the 0.1% forecasted by economists. This marks the steepest monthly fall since June 2023 and drags the annual growth rate to 2.5%, the slowest pace since July last year.
The decline has been driven by ongoing economic uncertainty and elevated borrowing costs, which continue to dampen demand in the property market. The property downturn also coincides with warnings from UK steel producers, who say they face a severe impact from potential U.S. tariffs on British steel imports, threatening a key industrial sector already under pressure.
Corporate News
Amazon.com Inc
Amazon announced job cuts in its Books division, including Goodreads and Kindle, as part of CEO Andy Jassy’s efficiency push. Follows layoffs in other units (devices, podcast, stores). Aimed at cutting bureaucracy and middle management layers.
Broadcom Inc
Earnings: Q2 revenue of $15B slightly beat estimates. Semiconductor revenue rose 16.7% to $8.41B. Forecast: Q3 revenue guided to $15.8B, above Street estimates. AI chip growth expected to accelerate to $5.1B. Morgan Stanley raised price target to $270 from $260.
Brown-Forman Corp
JPMorgan cut price target to $28 from $34 after weak Q4 results and downbeat FY2026 guidance.
Canadian National Railway (CNR:CA)
Scotia Capital reaffirmed “Outperform” rating, raised target to CAD 165 from CAD 157.50.
Circle Internet Group Inc (IPO)
Shares surged 168% from $31 IPO price, closed at $83.23. Market cap at debut near $18B.
DocuSign Inc
JPMorgan cut price target to $77 from $81, citing growth uncertainty and leadership transitions.
HSBC Holdings PLC
Chairman Mark Tucker to leave by Sept. 30, will chair AIA Group. Brendan Nelson to serve as interim chairman.
Lululemon Athletica Inc
Guidance Cut: Slashed annual EPS forecast to $14.58–$14.78 (prior: $14.95–$15.15). Cited low U.S. store traffic, inflation, competition. Revenue Outlook: Q2 revenue forecast of $2.54–$2.56B was in line.
Nippon Steel & U.S. Steel Corp
Asked court for 8-day litigation pause to finalize $14.9B acquisition amid national security review. Signals potential breakthrough.
Novo Nordisk A/S
EMA identified rare eye condition (NAION) as a side effect of Ozempic and Wegovy (semaglutide). Label update recommended.
Oshkosh Corp
JPMorgan raised target to $106 from $92, forecasting EPS to double by 2028.
PVH Corp
JPMorgan cut price target to $76 from $99 due to macroeconomic headwinds.
Sunnova Energy International Inc
Cutting 55% of staff (~718 jobs) amid debt issues. Lost $2.92B federal loan guarantee. Subsidiary filed for bankruptcy.
Tesla Inc
Stock Rebound: Shares recovered after $150B drop from Musk-Trump dispute. White House now mediating to ease tensions.
Transat AT Inc
Scotia Capital rated “Underperform” with target at CAD 1.75.
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