Global Markets
Canadian Markets
Canada’s TSX rose, powered ahead by the energy and financial sectors as traders bought the dip on de-escalation talks over Iran.
The Bank of Montreal (BMO) expects January GDP to come in flat after a modest 0.2% gain in December, with weakness concentrated in cyclically sensitive sectors like manufacturing, wholesale trade, and housing turnover, partially offset by consumer resilience in retail. On a quarterly basis, growth is tracking below 1% annualized following a contraction in Q4, reflecting soft business investment and export headwinds tied to U.S. tariffs, factors that are also capping upside in the Canadian dollar, which remains near yearly lows. Markets are therefore placing greater weight on February’s flash estimate as a more reliable signal of economic momentum.
American Markets
U.S. stocks moved higher after signals from Donald Trump indicating flexibility on the Strait of Hormuz which reduced fears of a worst-case supply disruption, prompting a relief rally as investors rotated back into risk assets from defensive positioning;, with the easing of geopolitical risk lowering expectations for a severe oil shock (that has been forcasted to hit $200 a barrel) and sustained inflation spike.
Today data release showed a stronger-than-expected consumer confidence reading from The Conference Board (91.8 vs. 87.9 expected), which suggests the consumer remains relatively resilient, even as sentiment overall hovers near decade lows due to persistent inflation concerns.
Gold has edged higher but is being capped by strength in the U.S. dollar, which continues to attract safe-haven flows amid concerns over rising inflation expectations.
European Markets
European markets have rebounded for the second day, but remain on track for their weakest monthly performance since 2022, underscoring the drag from geopolitical risk and energy-driven inflation. Germany’s labour market showed stability, with unemployment holding steady at 2.977 million, which was better than expectations for a rise, indicating some underlying resilience.
UK markets gained nearly 1%, supported by commodity-linked sectors. However macro data remains soft, with GDP growth being confirmed at just 0.1% in Q4, highlighting a stagnating economy. At the same time, rising shop price inflation, exacerbated by the Iran conflict adds complexity for policymakers, as weak growth increasingly collides with persistent inflationary pressures, creating an environment of stagflation.
Corporate Stock News
Allbirds Inc (BIRD): Allbirds agreed to sell its assets to American Exchange Group for $39 million and plans to wind down operations, with shareholder approval pending and proceeds expected to be distributed later in 2026.
Alphabet Inc (GOOGL) & Meta Platforms Inc (META): Alphabet and Meta Platforms were summoned by Indonesian regulators over non-compliance with new under-16 social media restrictions, while also facing scrutiny from Australia’s regulator.
Amphenol Corp (APH): Amphenol was initiated with a Buy rating by Jefferies, citing strong long-term sales growth potential and adaptability to future technology shifts.
Blackstone Inc (BX): Blackstone sold its Fidere residential portfolio in Spain to Brookfield for about $1.4 billion and is reportedly evaluating a Canary Wharf skyscraper opportunity.
Canadian Natural Resources Ltd (CNQ:CA): Canadian Natural Resources had its target raised to C$54 from C$52 by CIBC, reflecting expectations of disciplined capital spending and reduced capex.
Chevron Corp (CVX): Chevron reported significant cyclone damage at its Wheatstone LNG facility in Australia, leaving production offline for several weeks.
Constellation Energy Corp (CEG): Constellation Energy forecast annual profit below expectations but increased its share buyback authorization to $5 billion amid rising power demand driven by AI and electrification trends.
Exxon Mobil Corp (XOM): Exxon Mobil workers at its Baton Rouge facility ratified a new four-year labor contract with wage increases of 3.5%–4% annually.
General Motors Co (GM): General Motors is idling its Detroit EV plant and laying off 1,300 workers temporarily due to weak demand for electric vehicles.
JPMorgan Chase & Co (JPM): JPMorgan Chase plans to expand small business lending by $80 billion over the next decade under its “American Dream Initiative.”
McCormick & Company Inc (MKC): McCormick & Company is in advanced merger talks with Unilever’s food business in a potential $60 billion Reverse Morris Trust transaction.
Pandora A/S (PNDORA): Pandora is opening a distribution center in Ontario to reduce exposure to U.S. tariffs impacting its Thailand-made jewelry.
Phreesia Inc (PHR): Phreesia was downgraded to Neutral from Overweight by JPMorgan due to reduced visibility into pharma advertising budgets.
Sun Life Financial Inc (SLF:CA): Sun Life Financial completed acquisitions of remaining stakes in BGO and Crescent Capital for a combined ~C$2.4 billion, resulting in a near-term earnings charge.
Terns Pharmaceuticals Inc (TERN): Terns Pharmaceuticals was downgraded to Hold from Buy by Truist following its acquisition by Merck.
T-Mobile US Inc (TMUS) & Verizon Communications Inc (VZ): T-Mobile was blocked by a U.S. judge from running certain advertising claims after a legal challenge by Verizon.
Unilever PLC (UL): Unilever implemented a global hiring freeze due to economic uncertainty tied to the Middle East conflict and rising energy costs.
Yum! Brands Inc (YUM): Yum! Brands will take over most Taco Bell locations in Australia as Collins Foods exits the underperforming business.
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