Global Markets
Canadian Markets
Canada’s TSX declined on Thursday as falling oil prices weighed on the energy sector. Investor sentiment was further dampened after the Royal Bank of Canada (RBC), the country’s largest lender, reported quarterly earnings that missed analysts’ expectations. The miss was primarily due to higher-than-anticipated provisions for credit losses, as the bank prepared for potential loan defaults amid a weakening economic environment. This cautious stance, despite RBC’s overall income growth across most business lines, intensified concerns about the financial health of Canadian consumers and the broader domestic economy. The combination of lower oil prices and rising worries over economic resilience pushed equity markets lower.
American Markets
U.S. stocks posted gains, bolstered by Nvidia’s strong earnings report which exceeded Wall Street’s expectations, reinforcing optimism about the AI-driven tech rally. The broader market was also buoyed by a legal development: a U.S. federal court blocked the implementation of President Donald Trump’s proposed “Liberation Day” tariffs. This decision was seen as a major relief to global markets, which had been bracing for potential disruptions in trade. The U.S. dollar also rose on the news, supported by strong investor appetite and increased demand for safe-haven assets.
European Markets
European stock markets opened in positive territory, but reversed course and drifted lower later in the session as investors adopted a cautious stance ahead of key macroeconomic data. Focus now turns to Friday’s release of German inflation figures, a critical input ahead of next week’s European Central Bank (ECB) monetary policy meeting. Traders and investors are closely watching for any signs of easing or tightening in the ECB’s tone. Meanwhile, forecasts indicate that European homeowners are likely to face elevated mortgage rates until at least 2030, adding pressure on household finances and consumer spending across the continent.
UK markets slipped, led by losses in blue-chip stocks. Data from the Society of Motor Manufacturers and Traders (SMMT) revealed a sharp decline in vehicle production in April, with just 59,203 cars manufactured. This marks the lowest April output in more than 70 years, excluding 2020 during the pandemic lockdowns. The drop was attributed to weaker U.S. demand amid trade tensions, as well as calendar effects due to the timing of the Easter holiday. Additionally, UK services sector sentiment has deteriorated to a 2.5-year low, reflecting growing concerns about domestic economic momentum and consumer confidence.
Corporate News
Abercrombie & Fitch Co: Barclays raised its target price to $84 from $71 after the company’s strong Q1 results beat expectations.
Agilent Technologies Inc: Beat Wall Street’s Q2 estimates and raised its annual revenue forecast due to strong demand in drug development tools. It maintained its fiscal 2025 adjusted profit forecast.
Alphabet Inc: Google began direct online sales of Pixel devices in India, anticipating the launch of its first physical stores in the country.
Ansys Inc & Synopsys Inc: The FTC will require asset divestitures to address antitrust concerns over their $35B merger. Synopsys also raised its Q3 revenue forecast.
Boeing Co: Expects to complete 737 MAX 7 and MAX 10 certification by year-end, with significant order backlogs for both models.
Cadence Design Systems Inc: Named among companies affected by new U.S. export restrictions to China, impacting design software and semiconductor materials.
Canadian Imperial Bank of Commerce (CIBC): Reported a 20% rise in capital markets income and an increase in adjusted net income to C$2.02B in Q2, driven by market volatility and higher trading fees.
Chevron Corp: Will lay off nearly 800 employees in Texas as part of broader workforce reductions aimed at simplifying operations.
Elf Beauty Inc: Acquired Hailey Bieber’s skincare brand, Rhode, for about $1B, aiming to expand into the prestige beauty market.
Energy Transfer LP: Signed a 20-year LNG supply deal with Japan’s Kyushu Electric, marking the latter’s first long-term U.S. LNG contract.
HP Inc: Cut its FY2025 profit forecast due to weak PC market outlook and inflationary pressures; shares dropped in extended trading.
Moderna Inc: The Trump administration canceled a $590M contract for the development of its bird flu vaccine.
nCino Inc: KBW raised the price target to $33 from $28, citing improved operating income forecasts for 2026 and 2027.
Nordson Corp: Beat Q2 earnings estimates, helped by a 20% revenue jump in its medical and fluid solutions business, aided by the Atrion acquisition.
Nutrien Ltd: Announced plans to build a major West Coast port terminal to boost potash exports to Indo-Pacific markets.
Nvidia Corp: Beat Q1 sales expectations despite China export curbs, but forecasted $8B in lost revenue due to these restrictions. Piper Sandler raised its price target to $180.
Paramount Global: Reportedly offered $15M to settle a Trump lawsuit against CBS News; Trump’s team wants over $25M and an apology.
PepGen Inc: Discontinued its DMD therapy after failing to boost protein production in a mid-stage trial.
Royal Bank of Canada: Reported a strong Q2 with benefits from the $13.5B acquisition of HSBC Canada and strong wealth management performance.
Salesforce Inc: Raised its FY2026 revenue and profit outlook due to resilient cloud spending and increasing AI monetization. Baird lowered its price target to $365 from $400.
SentinelOne Inc: Trimmed annual revenue guidance due to cautious enterprise spending, especially among SMB clients.
Skyward Specialty Insurance Group Inc: KBW raised its target price to $72 from $67, expecting strong growth in premiums and underwriting profits.
Sunnova Energy International Inc: Trump administration canceled a $2.92B partial loan guarantee tied to its solar financing initiative.
Tesla Inc: Testing driverless Model Y cars in Austin with delivery targeted for June, ahead of schedule.
United States Steel Corp: Questions raised about Nippon Steel’s $15B bid to acquire U.S. Steel, with investor concerns on capital deployment amid U.S. demand hopes.
Victoria’s Secret & Co: Took down its website and some in-store services after a security incident. Stores remain open as the company investigates.
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