Global Market Update
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Canadian Markets
Canada’s TSX after three consecutive sessions of heavy selling hitting a 8 month low, initially rebounded on tariff optimism and then sold off in the afternoon on the escalation of the trade war between the Americans and Chinese. BMO Economist’s research suggested that the “Buy Canadian” movement could add up to 10 billion dollars annually to the national economy. This sentiment has been bolstered by consumers’ growing preference for locally produced goods, potentially offsetting some of the negative effects of the trade dispute with the USA. Canada’s Prime Minister, and the Bank of England’s former governor, Mark Carney, acknowledged the possibility of a recession in Canada.
American Markets
U.S. stock markets showed signs of recovery, with indices posting gains on Tuesday after a period of heavy sell-offs. Despite this rebound, stocks remained volatile due to escalating tensions with China, as President Trump’s plans to impose a staggering 104% tariff on Chinese goods has raised alarm among economists and investors, which sank markets in the afternoon. Former U.S. Treasury Secretary, Lawrence Summers warned that such a drastic tariff could lead to the loss of up to 2 million jobs in the U.S. economy, especially in sectors dependent on low-cost imports from China.
European Markets
European stocks closed over 2% higher on the day, after enduring a four-day sell-off. It is forecasted that European companies are now expected to report a 2.2% decline in first-quarter earnings, which could signal continued challenges for the Eurozone’s businesses amid a slowing global economy.
UK stocks rebounded 2.5% higher, as the UK’s GDP growth forecast for 2025 has been revised downward from 1.1% to 0.7%, and for 2026, it has been adjusted from 1.3% to 1.0%. On a slightly more positive note, the forecast for 2027 was slightly raised to 1.4%, suggesting that the UK economy could begin to stabilize toward the end of the decade. In response to the challenging economic environment, UBS expects the Bank of England to take aggressive action to stimulate the economy. The central bank is anticipated to cut interest rates three times in both 2025 and 2026, with the base rate potentially reaching 3.0% by the end of 2026.
Corporate Stock News
Alimentation Couche-Tard: Japan’s Seven & i Holdings is set to report a drop in quarterly profits, hindered by underperformance in its convenience store business. This comes as it faces a takeover attempt by Canada’s Alimentation Couche-Tard, which is working with Seven & i to find buyers for about 2,000 U.S. convenience stores.
Apple Inc & Meta Platforms Inc: The EU is expected to soon rule on whether Apple and Meta breached the Digital Markets Act, aimed at curbing their market power. Meta is also rolling out enhanced privacy features for teens on Facebook and Messenger to address online harm concerns.
Barrick Gold Corp: Barrick’s Reko Diq copper and gold project in Pakistan aims to secure over $2 billion in financing. The project is expected to generate significant cash flow, with production slated to start in 2028.
BlackRock Inc: Jefferies has lowered its target price from $1,175 to $959, citing risks from deteriorating investment performance and weak fund flows.
Broadcom Inc: Broadcom announced a $10 billion share buyback program, reflecting confidence in its AI-related investments, particularly for custom chips in high demand from cloud computing companies.
Centene Corp, CVS Health Corp & UnitedHealth Group Inc: Shares of U.S. health insurers rose after a stronger-than-expected increase in Medicare Advantage reimbursement rates for 2026.
Cisco Systems Inc: Piper Sandler cuts its target price to $60 from $72, warning of potential challenges from macroeconomic pressures and foreign exchange headwinds.
Cipher Pharmaceuticals Inc: Canaccord Genuity initiated coverage with a target price of C$12.5, anticipating that Cipher’s Natroba acquisition will boost revenue.
CoStar Group Inc: CoStar Group reached a settlement over accusations of poaching trade secrets from Move Inc., which owns Realtor.com.
CVS Health Corp & United Parcel Service Inc: CVS Health appointed Brian Newman, a United Parcel Service executive, as its new CFO, marking the first top management change since CEO David Joyner’s leadership began.
Dave & Buster’s Entertainment Inc: Piper Sandler reduced its target price to $22 from $33 following soft fourth-quarter results and a lowered FY2025 outlook.
Freeport-McMoRan Inc: CEO Kathleen Quirk expressed concerns over a potential global recession and the effect of U.S. tariffs on demand, noting the negative impact of a recent copper price drop.
Levi Strauss & Co: Levi’s forecasted a slight decline in net revenue for fiscal 2025 and adjusted earnings of $1.20 to $1.25 per share. The company has also been analyzing the impact of tariffs.
Magnolia Oil & Gas Corp: Gerdes Energy Research upgraded its rating to “Buy” from “Neutral,” expecting strong growth from Magnolia’s drilling program in the Giddings field.
Marvell Technology Inc: Infineon Technologies is buying Marvell’s automotive ethernet business for $2.5 billion in cash, with an expected revenue generation of $225 million to $250 million in 2025.
MercadoLibre Inc: The Latin American e-commerce giant is investing $5.8 billion in Brazil, marking a 47.8% increase from last year as part of its ongoing expansion in the country.
Morgan Stanley: Jefferies lowered its target price on MS to $137 from $151 due to challenges in capital markets activity and wealth management.
Occidental Petroleum Corp: Occidental’s unit, 1PointFive, received approval from the U.S. Environmental Protection Agency to sequester carbon dioxide at its Stratos direct air capture facility in Texas, marking a significant milestone.
Paramount Global: Paramount and Skydance Media’s $8 billion merger faces regulatory delays but could be extended by up to 90 days under the agreement’s terms.
PNC Financial Services Group Inc: Mark Wiedman, former BlackRock executive, was appointed president of PNC Financial Services, effective immediately.
Walgreens Boots Alliance Inc: The company exceeded Wall Street estimates for quarterly profit and is withdrawing its fiscal 2025 forecast due to its ongoing privatization process with Sycamore Partners.
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