Global Market Update
Canadian Markets
Canadian markets traded mixed, as falling oil prices weighed on energy stocks, a key component of the country’s TSX index, while rising gold prices lent some support to mining and materials stocks. Canada’s services sector shrank for the fifth consecutive month in April, according to S&P Global’s PMI data. The Business Activity Index rose slightly to 41.5 from March’s near five-year low of 41.2, but remained well below the 50.0 threshold, signaling continued contraction. Ongoing trade policy uncertainty and the upcoming federal election were key factors weighing on the sector.
American Markets
U.S. stocks traded Monday mostly negative after President Donald Trump reignited investor concerns by announcing a new tariffs on foreign made films. Investors and traders responded with caution, booking profits and mitigating risk, after a strong run from last week’s trading session. The renewed trade tension also adds uncertainty ahead of any potential trade negotiations, and it may also influence the Federal Reserve’s policy decisions if economic risks escalate as policymakers meet this week to discuss market conditions.
European Markets
European shares traded mixed, as investors took a wait-and-see approach ahead of anticipated developments in U.S.-China trade negotiations. Despite lingering uncertainty, investor confidence in the euro zone showed signs of improvement. According to Sentix, a respected economic sentiment survey, morale in the euro area rebounded more sharply than expected in May. The Sentix index rose to -8.1, a notable recovery from April’s -19.5 and significantly beating analyst expectations of -12.5. While the index remains in negative territory — signaling lingering pessimism — the uptick suggests sentiment may be stabilizing. The current situation index also improved, climbing to -19.3, its best reading since August 2024, reflecting a modest recovery in investors’ assessment of the present economic climate.
UK Markets
In the UK, stocks rose over 1%, supported by gains in the British pound against the U.S. dollar. The BoE is widely expected to cut rates, as policymakers grow increasingly concerned about the potential drag on the UK economy from President Trump’s new tariffs and broader global economic risks. The energy sector moved higher, even though oil fell, while mining stock surged on gold’s appreciation.
Corporate Stock News
Alibaba Group Holding Ltd: Two U.S. Republican lawmakers urged the SEC to delist Alibaba and 24 other Chinese firms over alleged military ties and national security risks. They claim these companies benefit from U.S. investor capital while supporting China’s military and violating human rights.
Artemis Gold Inc: Canaccord Genuity upgraded the stock to Buy from Speculative Buy after the company announced commercial production at its Blackwater Mine in British Columbia.
Berkshire Hathaway Inc: Warren Buffett will step down as CEO at the end of 2025 after 60 years, handing leadership to Vice Chairman Greg Abel. Despite lower Q1 operating profits due to insurance losses and FX hits, its cash stake hit a record $347.7 billion. KBW raised the price target on BRK-B to $735,000 from $730,000, citing strong earnings potential and balance sheet resilience.
Block Inc: Piper Sandler cut the price target to $51 from $85 after weak Q1 results, particularly in Cash App, and macroeconomic headwinds possibly affecting the FY2025 outlook.
Chevron Corp: Raymond James cut the price target to $155 from $161 following downward revisions in the company’s Q2 guidance amid crude market volatility.
Cigna Group: Leerink Partners raised the price target to $365 from $325, citing strong Q1 results, particularly in its Evernorth unit and specialty business momentum.
Enbridge Inc: The U.S. Army Corps of Engineers expects to decide this fall on whether to grant a permit for Enbridge’s Line 5 Great Lakes tunnel project. The review is being fast-tracked under a national energy emergency order. Enbridge welcomed the updated schedule.
Mastec Inc: Piper Sandler raised the target price to $175 from $134 following strong earnings and raised FY2026 guidance, marking the sixth straight quarter of solid performance.
Nvidia Corp: A U.S. lawmaker is planning legislation to track the post-sale location of AI chips, like those made by Nvidia, amid bipartisan concerns over illegal exports to China. Nvidia says it can’t monitor its chips after sale.
PJT Partners Inc: The investment bank opened a new office in Riyadh, Saudi Arabia, and expanded its Middle East leadership team. The region is attracting investment banking growth driven by Vision 2030 reforms and cross-border M&A activity.
Shell Plc: Shell is reportedly evaluating a takeover bid for BP Plc but is waiting for further declines in BP’s stock and oil prices. The company has grown to nearly twice the size of BP. CEO Wael Sawan said he currently prefers stock buybacks.
Telefonica SA: The Spanish telecom firm is considering laying off 4,000–5,000 employees to cut costs, after a previous 3,400-job reduction in 2023. Automation and network upgrades are reducing labor needs.
United Airlines Holdings Inc: CEO Scott Kirby announced the cancellation of 35 daily flights from Newark due to FAA equipment failures and staff shortages. The disruptions have affected thousands of passengers.
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