Global Markets
USA
On Wall Street, shares faced a noticeable drop, reflecting concerns over yesterday’s strong PMI data as investors feel the Fed could be dissuaded from lowering rates. Bond yields rose that sunk American indexes.
Europe
European stocks demonstrated resilience and managed to gain ground, particularly in anticipation of crucial German inflation data. This optimistic outlook suggests a level of confidence among investors in the European market despite global uncertainties.
Asia
Chinese shares ended the day with minimal change, indicating subdued investor sentiment. This sentiment was influenced by a combination of factors, including promising manufacturing activity data countered by expectations for additional stimulus measures to prop up the Chinese economy. Conversely, Japan’s Nikkei index closed higher, showcasing a more positive trend in the Japanese equities market.
Canada
Canada’s primary stock index experienced a slight decline, indicating a cautious sentiment among investors.
Amid these market movements, the U.S. dollar experienced a marginal decline, potentially reflecting shifts in global currency dynamics or investor preferences. Meanwhile, gold prices surged to new record highs, buoyed by support from momentum-following funds, indicating a strong demand for safe-haven assets amidst market volatility.
In the commodities market, oil prices witnessed a notable uptick, with Brent crude surpassing $88 a barrel for the first time since October. This surge was fueled by fresh threats to oil supplies, including heightened tensions in the Middle East and continued attacks on Russian energy facilities by Ukrainian forces. These geopolitical uncertainties contributed to the bullish momentum in oil prices, highlighting the intricate interplay between global politics and commodity markets.
Corporate News
- Shell’s Climate Ruling Appeal: Shell is appealing against a landmark climate ruling that ordered it to significantly increase its planned greenhouse gas emission cuts.
- BMW and Tata Technologies Joint Venture: BMW and Tata Technologies are forming a joint venture to develop software for BMW vehicles.
- RHI Magnesita’s Acquisition: Vienna-based RHI Magnesita plans to acquire Resco Group, a U.S.-based producer of alumina and refractories, for up to $430 million.
- Canada’s Indigenous Energy Investments: Indigenous groups in Canada are looking to invest in large energy projects, pending a promise from Prime Minister Justin Trudeau to facilitate financing for such deals.
- US Regulators Investigating Asset Managers: US banking regulators are investigating whether asset management giants like BlackRock, Vanguard, and State Street are maintaining passive roles in their investments in US banks.
- Health Insurers and Medicare Advantage Rates: US health insurers’ shares dropped following unchanged reimbursement rates for Medicare Advantage health plans, leading to concerns about potential margin squeezes.
- Impact of US Climate Law: The US has accelerated carbon emission reduction efforts since the passage of President Biden’s Inflation Reduction Act in 2022, with significant investments in solar, wind, and energy storage projects.
- Disney’s Board Seat Battle: Walt Disney seems to be gaining ground in the battle for board seats against activist investors, with support from major shareholders like T. Rowe and BlackRock.
- FDA’s Proposal on Menthol Cigarettes: The FDA’s proposal to ban menthol-flavored cigarettes in the US faces delays, impacting companies like Altria and British American Tobacco.
- Internet Subsidy Program Extension: The White House aims to convince Congress to extend an internet subsidy program before it expires, affecting companies like AT&T, Comcast, and Verizon.
- Canoo’s Revenue Forecast: Electric vehicle maker Canoo forecasts lower-than-expected revenue for 2024 amid a slowdown in demand for battery-powered cars.
- Chevron’s Drilling Campaign: Chevron’s joint venture in Venezuela has initiated a new drilling campaign following US sanctions relief, aiming to boost crude output.
- Health Insurers’ Medicare Advantage Payments: US health insurers are concerned about unchanged Medicare Advantage payments, potentially impacting their profitability.
- Frontier Group’s Market Strategy: Frontier Group is shifting its focus towards high-fare markets to improve earnings, amidst challenges in leisure markets.
- General Electric’s Breakup: General Electric has completed its breakup into three companies, marking the end of an era for the industrial conglomerate.
- Home Depot’s Expansion Plans: Home Depot plans to invest in expanding its market share in Mexico by opening more stores and widening its product offerings.
- S&P’s Outlook Revision for JPMorgan Chase: S&P Global revised the rating outlook of JPMorgan Chase to ‘positive’, citing the strength of its lending-to-trading business.
- Phillips 66’s Renewable Fuel Plant: Phillips 66 is converting an oil refinery in California into a renewable fuel plant, with operations expected to commence by the second quarter of 2024.
- Warner Bros Discovery Board Resignations: Independent directors Steven Miron and Steven Newhouse resigned from Warner Bros Discovery’s board amidst a US antitrust probe into their service on competing media company boards.
- UBS’s Share Buyback Program: UBS announced a new share buyback program of up to $2 billion, aiming to repurchase shares over the next few years.
Top Analyst Ratings
Here’s a summary of top analyst ratings for today: April 2nd, 2024
- Boat Rocker Media Inc (TSE: BRMI):
- Canaccord Genuity lowered the target price from C$3.5 to C$3. Due to delayed production schedules caused by strikes and slow commissioning of new productions by streamers.
- Rogers Communications Inc (TSE: RCI.B):
- JPMorgan decreased the target price from C$90 to C$81. This adjustment is based on lower estimates in media, cable, and wireless sectors.
- 3M Co (NYSE: MMM):
- RBC lowered the target price from $84 to $78 following the spinoff of the company’s health care business Solventum.
- BlackRock Inc (NYSE: BLK):
- JPMorgan increased the target price from $742 to $767 ahead of Q1 results, citing better market conditions during the quarter.
- General Dynamics Corp (NYSE: GD):
- RBC raised the target price from $300 to $325 after the company received final FAA certification for the G700 aircraft.
- GoDaddy Inc (NYSE: GDDY):
- JPMorgan raised the target price from $128 to $136 following the rollout of the company’s AI product called ‘Airo’ to its existing customer base.
- Verizon Communications Inc (NYSE: VZ):
- RBC increased the target price from $36 to $40, expecting growth in wireless service revenue and momentum in gross additions.
