Market Overview: A Global Perspective
Canadian Markets:
Canada’s TSX fell on open, primarily impacted by declining oil and gold prices, however markets and commodities rebounded on more assuring inflationary data out of the US. The drop in oil prices was driven by a strong U.S. dollar and concerns over weaker global demand growth in 2025, pressuring energy stocks.
American Markets:
In the U.S., major indices also opened sharply in the red, reflecting investor caution as the risk of a government shutdown grew closer. Federal Reserve policymakers’ recent hawkish stance signaled that interest rates might remain elevated for longer, dampening market sentiment. However markets reversed course on release of the November Personal Consumption Expenditures (PCE) index, which rose 0.1% from the previous month, a slowed down from October’s 0.3% monthly gain in prices.
European Markets:
European shares declined, but closed off their lows, with pressure stemming from a sharp drop in Novo Nordisk stocks and heightened geopolitical concerns. President-elect Donald Trump’s tariff threats against the EU exacerbated market unease, affecting industrial and export-driven sectors.
The FTSE 100 in the UK closed flat, cushioned by weaker-than-expected British retail sales data, which spurred speculation about potential monetary easing from the Bank of England.
Asian Markets:
Asian markets mirrored the global risk-off sentiment. Stocks in China and Japan ended the week with losses, driven by worries about slowing global demand and the ongoing uncertainty around U.S. monetary policy. In China, domestic concerns about sluggish economic growth and lackluster corporate earnings added to the downward pressure.
Corporate Stock News
AAR Corp
The aerospace company agreed to pay over $55 million to settle U.S. charges involving bribery of officials in Nepal and South Africa. This resolves violations of the Foreign Corrupt Practices Act. AAR will fund these payments through a mix of cash on hand and borrowings from its credit facility.
Amazon.com Inc
Amazon settled OSHA complaints involving ergonomic safety failures at 10 U.S. facilities. The company will implement measures like adjustable workstations and hazard reviews across its centers to reduce workplace injuries.
Ansys Inc & Synopsys Inc
The UK’s Competition and Markets Authority raised concerns about Synopsys’ $35 billion acquisition of Ansys, suggesting the deal could reduce innovation and lead to higher prices. The merger may still be approved if these issues are addressed.
Arm Holdings Plc & Qualcomm Inc
A licensing dispute between Arm and Qualcomm is being deliberated by a jury. The case involves allegations of breached agreements following Qualcomm’s acquisition of Nuvia, a chip startup.
Chevron Corp & Energy Transfer LP
Energy Transfer announced a 20-year LNG supply deal with Chevron, providing 2 million tonnes annually from its Lake Charles project in Louisiana.
Cintas Corp
JPMorgan cut its target price for Cintas to $210 from $228, citing slightly slower organic revenue growth based on its 2025 guidance.
Crown Castle Inc & TPG Inc
TPG is in advanced talks to acquire Crown Castle’s fiber unit for $8 billion. While the deal may close soon, discussions remain fluid.
FedEx Corp
FedEx announced the spinoff of its freight trucking division, boosting its market cap by $5 billion in after-hours trading. Analysts project this could unlock $20 billion in shareholder value. Despite this, FedEx warned of weak demand in its most profitable business segments.
GSK Plc
GSK reported that combining its drugs Jemperli and Zejula with chemotherapy improved survival rates in advanced ovarian cancer patients. However, overall survival improvements in the trial were not statistically significant.
Ionis Pharmaceuticals Inc
The FDA approved Ionis’ first wholly-owned drug, Tryngolza, to treat familial chylomicronemia syndrome, a rare genetic disorder.
Nike Inc
Nike’s quarterly results beat expectations, but its muted forecast for the next quarter erased earlier stock gains. The company projects low double-digit revenue declines and aims to regain market dominance by refocusing on core sports.
North West Company Inc
BMO raised its target price for North West Company to CAD 58, citing potential consumer demand boosts from government settlement payments to Indigenous communities.
Novo Nordisk A/S
Novo Nordisk’s experimental obesity drug, CagriSema, delivered weight loss below expectations, causing the stock to drop and wiping $125 billion from its market value.
Nvidia Corp
The European Commission approved Nvidia’s $700 million acquisition of Run:ai, determining the deal poses no competition concerns.
SAP SE & Teradata Corp
A U.S. appeals court revived Teradata’s antitrust lawsuit against SAP over alleged trade secret theft.
Shell Plc & TotalEnergies SE
Shell and Prax halted the sale of Shell’s stake in Germany’s Schwedt oil refinery. Meanwhile, TotalEnergies finalized its purchase of majority stakes in two Danish offshore wind projects.
Starbucks Corp
Starbucks union workers announced a five-day strike in major U.S. cities over unresolved issues on wages and schedules. The company stated it has reached agreements on many topics with union representatives.
Tesla Inc
Tesla recalled nearly 700,000 vehicles in the U.S. due to tire pressure monitoring system issues. The problem will be resolved through an over-the-air software update.
United States Steel Corp
The company forecast a fourth-quarter loss, citing lower selling prices, reduced volumes, and increased maintenance costs.
Walmart Inc
Walmart announced it is unlikely to meet its 2025 and 2030 carbon emissions reduction targets due to policy and infrastructure challenges.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
