Market Analysis: March 27th, 2025

STA Research
March 27th, 2025
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Global Market Update

Canadian Markets

Canada’s TSX fell even though oil and gold rose on Thursday.  The weak market trading was the result of news that U.S. President Donald Trump announced the implementation of a 25% duty on imported cars and light trucks coming into the American market. Canadian auto industry leaders condemned U.S. President Donald Trump’s tariffs on all automobile imports, effective April 2, and warned that it will increase car prices and devastate the sector.

American Markets

In the U.S., stocks traded in a mixed fashion. While some sectors showed resilience, the auto industry faced significant pressure as the tariffs threatened to extend losses for auto stocks. Companies in the automotive sector, particularly those that rely heavily on imports or exports, experienced declines in stock prices as investors anticipated higher costs and reduced profitability due to the new tariffs. The uncertainty surrounding the tariffs further exacerbated volatility in the broader U.S. market.

European Markets

European shares fell to a two-week low, with significant losses seen in markets. The news of rising inflation in Norway also added to investor concerns, as it raised the prospect of tightening monetary policy in the region, which could further strain economic growth. Moreover, the European Central Bank (ECB) issued a warning to European banks about potential liquidity risks arising from geopolitical shocks, underscoring the growing concerns over global instability. This warning added a layer of caution to European stock markets, as investors became increasingly anxious about the broader economic impact of global trade disruptions.

In the UK, stocks also dropped, largely driven by fears over the new tariffs and their potential effects on the UK economy. The British equity market, already under pressure from economic weakness took a further hit as concerns about trade barriers with the U.S. resurfaced. Among the hardest-hit stocks was luxury car manufacturer Aston Martin, whose shares slumped to a record low. The company, which is heavily dependent on global exports, especially to the U.S., faced increased uncertainty as the tariff announcement raised the prospect of higher costs for both imports and exports.

Corporate Stock News

  • Advanced Micro Devices Inc: Jefferies cuts AMD target price to $120 from $135, citing widening performance gap with Nvidia and increased competition from Intel.

  • Amazon.com Inc: India’s product certification agency raided Amazon’s warehouses over quality control issues, seizing items like geysers and food mixers worth about $81,561.

  • Bank of America Corp: Bank sees an 80% increase in mortgage applications between January and March, boosted by lower long-term bond yields and increased home inventory.

  • Blackstone Inc: UK’s Warehouse REIT may recommend Blackstone’s all-cash takeover proposal if a firm offer is made.

  • BRP Inc: CIBC cuts target price to C$64 from C$82, citing prospective tariffs and weaker consumer demand affecting near-term outlook.

  • CarMax Inc: Stephens raises target price to $90 from $86, supported by the company’s consistent operational performance.

  • Chewy Inc: JPMorgan raises target price to $40 from $38, following a strong earnings beat and growth in active customers.

  • CoStar Group Inc: Raises acquisition bid for Domain Holdings to A$4.43 per share, representing a 5.5% premium to the initial offer.

  • Ford Motor Co, General Motors Co & Tesla Inc: Shares of these automakers dropped after President Trump’s announcement of a 25% import tariff on vehicles.

  • International Business Machines Corp: A U.S. federal judge allows a lawsuit against IBM over diversity practices to proceed to trial.

  • JPMorgan Chase & Co: Partners with Axis Bank to offer real-time U.S. dollar payment capabilities to commercial clients in India.

  • Jefferies Financial Group Inc: Reports Q1 profit miss, with bond trading weak and investment banking facing uncertainty due to shifting trade policies and geopolitical tensions.

  • KKR & Co Inc: Nears a deal to acquire Japanese medical gear maker Topcon.

  • Lightspeed Commerce Inc: ATB Capital Markets cuts target price to C$17 from C$26, citing uncertainty over management’s new strategic focus amidst macro pressures.

  • Lockheed Martin Corp: RBC cuts target price to $480 from $550, highlighting risks associated with F-35 international sales and U.S. budget pressures.

  • Meta Platforms Inc: WhatsApp wins backing from an adviser to Europe’s top court in its battle over a privacy fine.

  • Pfizer Inc: Federal prosecutors probe claims that Pfizer delayed announcing the success of its COVID vaccine in 2020 to influence the U.S. election.

  • Qualcomm Inc: German automakers, alongside Qualcomm, will meet with Chinese President Xi Jinping amid growing investment challenges and U.S. tariffs.

  • Robinhood Markets Inc: Robinhood launches wealth management services with a 0.25% annual fee for its premium users, offering ETF-managed portfolios and individual stock access.

  • Soleno Therapeutics Inc: U.S. FDA approves Vykat XR, a drug to treat hyperphagia in Prader-Willi syndrome, priced at $466,200 annually.

  • Tesla Inc: Daiwa Capital Markets cuts TSLA target price to $300 from $420, citing a pullback in stock price and pressure from EV volumes and pricing.

  • UnitedHealth Group Inc: Removes most mentions of its diversity, equity, and inclusion policies from its website, sparking questions about a potential policy shift.

  • UBS: Loses legal challenge against a 172.4-million-euro EU cartel fine, with Europe’s second-top court siding with antitrust regulators.

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