Global Market Analysis
Canadian Markets
The TSX (Toronto Stock Exchange) moved higher on Friday’s trading session, driven by positive market sentiment following a U.S.-China tariff truce and softer-than-expected inflation data. The energy sector notably contributed to gains as oil prices rose, boosting investor confidence in energy-related stocks.
Canadian retailers, including Loblaw Cos. Ltd. and Walmart Inc., are warning of imminent price hikes due to U.S. tariffs. Loblaw expects the number of affected items to rise significantly as inventories deplete, while Walmart predicts noticeable price increases starting in May. Despite some easing of U.S. trade tensions with other countries, Canada has yet to benefit, and economic data indicates tariffs are starting to hurt businesses.
American Markets
U.S. stocks also rose, with major indexes on track to end the week positively. Investors remain focused on the potential passage of President Donald Trump’s comprehensive tax reform bill, which has fueled optimism in the market, while the US Federal Reserve is looking at cutting 10 percent of its workforce over the next several years.
The IPO market is starting to show signs of renewed life as eToro‘s shares rose almost 30% in their Nasdaq debut, surpassing IPO price expectations. CoreWeave recently reported 420% revenue growth in its first earnings report as a public company, with shares soaring 60% this week, doubling in value since its March IPO.
European Markets
European stocks appeared set to finish the week with gains, supported by strong corporate earnings reports and easing trade tensions. In Germany, economic sentiment improved notably, as evidenced by the ZEW economic sentiment indicator rising to 25.2 points in May—an increase of 39.2 points from the previous month. This surge reflects increased optimism amid political stability, progress in tariff disputes, and a steady inflation rate.
UK stocks also saw gains, bolstered by reduced fears of a global tariff war and expectations of upcoming trade agreements. The blue-chip FTSE 100 index rose by 0.59%, marking its highest close in nearly two months and recording a weekly gain of approximately 1%. Economic data showed that the UK economy grew by 0.7% in the first quarter of 2025, reflecting steady economic momentum.
Corporate Stock News
Alibaba Group Holding Ltd: Reported quarterly revenue that missed Wall Street estimates due to persistent economic weakness and high unemployment in China, resulting in cautious consumer spending. Revenue for the fiscal fourth quarter was 236.45 billion yuan, slightly below the expected 237.24 billion yuan.
Birkenstock Holding Plc: Raised annual forecasts as second-quarter sales exceeded expectations. Fiscal 2025 revenue is now expected at the high end of the 15% to 17% forecast range, with an EBITDA margin of 31.3% to 31.8%. Quarterly revenue reached 574.3 million euros, beating the estimated 567.7 million euros.
Cisco Systems Inc: CFO Scott Herren to retire in July, replaced by Mark Patterson. Raised annual revenue forecast to $56.5-$56.7 billion, up from $56-$56.5 billion, citing strong cloud demand driven by AI. Adjusted quarterly profit of 96 cents per share exceeded the expected 92 cents.
CoreWeave Inc: Plans to spend $20-$23 billion in 2025 on AI infrastructure and data centers. Expected annual revenue of $4.9-$5.1 billion surpassed analysts’ expectations of $4.61 billion. First-quarter revenue of $981.6 million exceeded the forecast of $852.9 million.
Deere & Co: Cut the lower end of its annual profit forecast due to economic uncertainty and reduced demand for tractors as farmers opt to rent. Lowered net income forecast to $4.75-$5.5 billion from $5-$5.5 billion. Second-quarter revenue fell 16% to $12.8 billion, with net income dropping to $1.8 billion from $2.37 billion.
Foran Mining Corp: BMO downgraded to “market perform” from “outperform” and cut the target price to C$3.75 from C$5 after the company announced a private placement to fund a project.
MEG Energy Corp & Strathcona Resources Ltd: Strathcona plans to acquire MEG Energy for C$5.93 billion, creating Canada’s fifth-largest oil producer. The offer includes 0.62 Strathcona shares and C$4.10 in cash per MEG share, valuing MEG at C$23.27 per share, a 9.3% premium.
New Fortress Energy Inc: Reported a first-quarter loss due to weak performance across segments. Total revenue fell to $470.5 million from $690.3 million a year ago. The net loss was $197.4 million compared to a net income of $56.7 million last year.
Steris Plc: Expects fiscal 2026 adjusted per-share profit between $9.90 and $10.15, surpassing the expected $9.87. Fourth-quarter revenue was $1.48 billion, above the forecast of $1.47 billion, driven by strong performance in the healthcare segment.
VEON Ltd: Reported a 9% rise in quarterly revenue to $1 billion, driven by digital services growth in Ukraine and Pakistan. EBITDA rose 13.7% to $439 million. In Ukraine, revenue grew 20% year-on-year, while Pakistan saw a 20% increase in digital revenue.
Walmart Inc: Reported a first-quarter U.S. comparable sales increase of 4.5%, beating the expected 3.94%. Net sales rose 2.5% to $165.6 billion. Adjusted profit of 61 cents per share beat the forecast of 58 cents. The company warned that tariff costs might increase prices.
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