Global Markets
Canadian Markets
Canada’s main stock index moved higher as metal prices surged, boosting resource-heavy sectors, while oil prices also climbed sharply amid renewed fears of potential U.S. military action against Iran, which raised concerns about supply disruptions and geopolitical risk premiums. The Canadian government announced that 10,000 Canadian federal workers were told they could face layoffs, underscoring ongoing fiscal pressures. Economists expect the Bank of Canada to hold interest rates steady through 2026, with trade-related uncertainty seen as the primary risk to the economic outlook rather than inflation. Statistics Canada reported that retail sales rose 1.3% to $70.4 billion in November, pointing to resilient consumer spending despite macro headwinds.
American Markets
US stocks traded mixed, with the Nasdaq leading gains, even as Intel shares fell sharply following a disappointing forecast and supply constraints that weighed on the technology sector. Geopolitical tensions continued to disrupt investor sentiment, contributing to a choppy market performance. The Dow Jones Industrial Average was pressured by declines in Goldman Sachs and Caterpillar, while strength in Amazon and Microsoft helped offset some of the weakness. Equity funds recorded record outflows, driven by heavy withdrawals from both U.S. and China-focused funds, reflecting investor caution amid economic and political uncertainty.
European Markets
European markets were mostly lower as investors assessed the impact of renewed trade tensions and ongoing geopolitical conflicts. The forecast for the Eurozone economic outlook remains relatively stable, with the economy expected to be expanding 1.2% to 1.4% range for 2026–2027.
UK stocks declined, but the pound strengthened after data showed retail sales unexpectedly rose 0.4% in December, as consumers returned to shops following declines in both October and November. Economists surveyed by had expected sales to fall by 0.1% month over month, making the result a notable upside surprise. Supporting the more upbeat tone, the preliminary S&P Global UK Composite PMI for January climbed to 53.9 from 51.4, its highest level since April 2024, signaling accelerating business activity across the services and manufacturing sectors.
Corporate Stock News
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