Global Markets
Canadian Markets
Canada’s TSX (Toronto Stock Exchange) rose slightly, benefiting from higher oil and metal prices, which have been key drivers for the index. Investors are awaiting the Bank of Canada’s interest rate decision later this week. The central bank is widely expected to announce a rate cut of 0.50%, marking its second consecutive cut of this magnitude. This is seen as part of the bank’s efforts to support economic growth in the face of global uncertainties and domestic inflation pressures.
American Markets
U.S. markets traded in the red as investors have shifted focus to geopolitical concerns, particularly tensions surrounding trade policies and ongoing conflicts in various regions, which are weighing on market sentiment. Downward pressure was also helped by Nvidia’s stock falling over 3 percent, as China targets the company for breaching anti-monoply laws. on While some sectors performed well, including tech and energy, uncertainty about global stability and the future direction of U.S. monetary policy created a tug-of-war for market direction. In particular, the potential for future interest rate cuts by the Federal Reserve has been a key area of concern, as it could influence everything from bond yields to equity valuations.
European Markets
European stocks traded mainly higher, primarily driven by strong performances in the mining and luxury goods sectors. These stocks were buoyed by expectations of continued demand from global markets, especially as energy and material prices remain elevated. Mining companies have benefited from rising commodity prices, while luxury stocks have seen consistent growth due to resilient consumer spending, especially in Asia and Europe.
Japanese & Chinese Markets
Japan’s Nikkei index rose as investors are hopeful that strong corporate earnings and economic recovery will continue to fuel growth in the region. The yen continued to appreciate against the US dollar.
Chinese stocks ended the day slightly lower after the Politburo, China’s top policy-making body, signaled a potential shift toward looser monetary policy. While the move to ease monetary policy could be seen as supportive for economic growth, it also raised concerns about how effective such measures will be in addressing ongoing structural challenges in the economy.
Corporate Stock News
Alphabet Inc, Meta Platforms Inc, Microsoft Corp & Snap Inc: President-elect Donald Trump’s transition team has invited these tech companies to discuss online drug sales and related barriers. Additionally, the U.S. consumer finance watchdog ordered federal supervision of Google Payment Corp, which Google plans to challenge in court.
Allianz & Amundi: Discussions about merging Allianz and Amundi’s asset management businesses have been paused, according to sources close to Allianz.
Amazon.com Inc & Walmart Inc: India’s antitrust body has asked the Supreme Court to expedite hearings on challenges to an investigation into Amazon and Walmart’s Flipkart platform for alleged violations of antitrust laws.
Arthur J. Gallagher: The company agreed to acquire AssuredPartners for $13.45 billion, aiming to strengthen its position in the fast-growing middle-market segment.
BioAge Labs Inc & Eli Lilly and Co: BioAge Labs halted its mid-stage trial of its experimental obesity drug after liver enzyme abnormalities were observed, resulting in a drop in its stock price.
BlackRock Inc & State Street Corp: Private law firms hired by Texas to sue BlackRock, Vanguard, and State Street in an antitrust case involving energy prices could earn up to $3,780 per hour or a 10% success fee.
Boeing Co: Boeing’s top lobbyist is leaving the company, effective immediately, and will be replaced by Bill McSherry on an interim basis.
BP Plc: BP and JERA have formed a joint venture, JERA Nex BP, to combine their offshore wind operations, with a potential 13 GW generation capacity.
Citigroup Inc: Citigroup appointed Harish Raman as head of equity capital markets execution and origination for Asia North, Asia South, and Australia.
Dow Inc: Dow will sell a 40% stake in U.S. Gulf Coast infrastructure assets to Macquarie Asset Management for $2.4 billion, creating a new partnership for industrial customers.
Five9 Inc: Five9 is nearing a settlement with Anson Funds, which had pushed the company to make changes to boost its share price, including the appointment of a board seat for Anson’s portfolio manager.
GE Aerospace: CFM International, a joint venture between GE Aerospace and Safran, received certification for a more durable high-pressure turbine kit for its LEAP-1A engines.
Golub Capital BDC Inc: Golub Capital opened an office in Abu Dhabi to expand its presence in the Middle East and received preliminary approval for a license to operate in the region.
Intel Corp: Taiwan Semiconductor’s founder criticized Intel’s focus on becoming a contract chipmaker rather than concentrating on artificial intelligence, following the departure of Intel’s CEO.
Lockheed Martin Corp: The U.S. announced a $988 million aid package for Ukraine, which includes ammunition for Lockheed Martin’s HIMARS systems.
Macy’s Inc: Activist investor Barington Capital urged Macy’s to create a real-estate unit and explore options for its Bloomingdale’s and Bluemercury chains, while calling for stock buybacks and reduced capital expenditure.
Microsoft Corp: The U.S. government approved the export of AI chips to Microsoft’s UAE facility as part of its partnership with Emirati firm G42.
Reddit Inc: Morgan Stanley raised Reddit’s target price from $70 to $200, citing its strong engagement and advertising strategies.
Stellantis NV: Stellantis plans to rejoin the European auto lobby ACEA, signaling a more cautious stance on electrification efforts.
Sunoco LP: RBC raised Sunoco’s target price to $64 from $63, driven by growth expectations following the NuStar acquisition and a joint venture with Energy Transfer.
UnitedHealth Group Inc: Authorities are closing in on the suspect of the murder of UnitedHealth executive Brian Thompson, with New York City Mayor Eric Adams stating that the investigation is tightening.
Victoria’s Secret & Co: Barclays raised Victoria’s Secret’s target price from $25 to $51 after the company reported strong third-quarter results and increased its full-year guidance.
VinFast Auto Ltd: The Vietnamese EV manufacturer plans to build a second plant in Vietnam to double its production capacity, aiming to meet increased demand for small and mid-sized models.
Volkswagen: The company faces ongoing labor negotiations over wage cuts and plant closures, which have led to strikes at its main German sites.
UniCredit & Credit Agricole: UniCredit confirmed it is open to discussions with Credit Agricole after the French lender increased its potential stake in Banco BPM, UniCredit’s takeover target.
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