Global Market Update
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Canadian Markets
Canadian stocks stumbled as oil and gold prices dropped, as well as the intensifying recession fears sparked by the U.S. tariff policies. The Bank of Canada’s recent grim report paints a concerning picture for the country’s economic prospects. Business confidence has been taking a hit, as companies are increasingly worried about rising trade tensions, the economic fallout from tariffs, and the potential for higher operational costs. The fear of escalating prices—particularly as tariffs drive up the cost of imports—has added to inflation concerns. Businesses are uncertain about future demand, and with trade relationships strained, there’s a growing reluctance to invest or expand.
American Markets
U.S. stocks have experienced considerable volatility on Monday, as the markets wrestle with the economic impact of ongoing trade disputes. Investors are grappling with the potential long-term consequences of these tariffs on global supply chains, production costs, and consumer prices. The uncertainty surrounding the U.S. administration’s trade policy—combined with fears of a global recession—has led to erratic trading in U.S. stocks. Trump also threatened additional tariffs on China, adding to the volatility.
European Markets
European stocks saw significant losses, sinking to a 16-month low, as investors’ fears of a recession continue to mount, dropping over 4 percent. The drop in European stocks is largely driven by growing concerns that the region could be heading toward a recession. Economic growth in the Eurozone has already been weak, and now the fear is that the global trade slowdown and escalating trade tensions will push Europe into a more severe economic contraction. The expectation of interest rate cuts has intensified as the outlook for the European economy has worsened, driven by a combination of factors: weaker-than-expected economic growth, persistent inflation concerns, and the ripple effects of global trade disruptions
UK Markets
UK’s stock markets also dropped over 4% as traders engaged in a “risk-off” stance, selling off stocks and moving to safer assets. The British pound, too, saw a steep decline as traders reacted to the broader market turmoil and growing fears about the economic outlook, as traders sold stocks, to reduce risk which caused a reduction in demand for the pound.
Corporate Stock News
Apple: Target price cut to $250 from $325, by Wedbush Securities due to tariff uncertainties. Apple is appealing a UK government order to create a “back door” for encrypted services, citing security risks. The company has opposed such backdoors for years due to potential hacker exploitation.
Chevron Corp: Chevron was ordered to pay $740 million in damages to restore wetlands in Louisiana after a lawsuit filed by Plaquemines Parish, covering land loss, contamination, and abandoned equipment.
Howmet Aerospace Inc: Howmet Aerospace, a supplier for Airbus and Boeing, may stop shipments due to U.S. tariffs. The company invoked a force majeure clause, potentially freeing it from contractual obligations if affected by tariffs.
Maxeon Solar Technologies Ltd: Maxeon Solar is restructuring its manufacturing and supply chains due to U.S. tariffs and is focusing on its Albuquerque-based facility and seeking domestic vendors.
Meta Platforms: Target price cut at Jefferies to $600 from $725 due to user engagement and regulatory concerns. Meta unveiled its most advanced language models, Llama 4 Scout and Maverick, and announced a $1 billion investment to build a data center in Wisconsin for AI initiatives.
Microsoft: Target price cut to $475 from $500 by Jefferies, due to cloud transition risks. Microsoft’s joint venture, Wicresoft, will cease operations in China, leading to 2,000 layoffs, as the company pulls back amid political and trade tensions.
Meta: Target price cut at Jefferies to $600 from $725, due to user engagement and regulatory concerns.
Novo Nordisk A/S: The Biden administration decided not to move forward with a proposal to expand Medicare coverage for weight-loss drugs like Novo Nordisk’s Wegovy due to ongoing tariff negotiations.
Prosecco and Italian Wines: U.S. outlook for Italian wines is negative due to a 20% tariff on European imports.
Shell Plc: Shell revised its first-quarter LNG production outlook downward, citing weather-related disruptions in Australia.
Tesla: Target price for TSLA cut at Wedbush to $315 from $550, due to tariff-related supply chain disruptions.
Toyota Motor Corp: Toyota aims to produce 1 million electric vehicles annually by 2027 and expand manufacturing to mitigate tariff risks, with plans for 15 EV models.
UK Electric Vehicle Targets: UK PM Keir Starmer eased EV production targets to ease pressure from U.S. tariffs on UK businesses.
Walmart: Target price cut at Oppenheimer to $95 from $110, due to evolving tariff challenges.
Walmart Inc: Walmart denied reports that it was considering joining a group to buy TikTok, clarifying that the story was incorrect and retracted.
WK Kellogg Co: Texas is investigating WK Kellogg for potentially violating state laws by marketing cereals as “healthy,” amid concerns over artificial food colorings in products like Froot Loops and Frosted Flakes.
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