Stock Market Update for June 12th, 2024

Stock Market Update for June 12th, 2024

Global Markets

Wall Street moved higher as investors anticipated the release of key consumer price data and the conclusion of the Federal Reserve’s policy meeting later in the day. This positive movement in U.S. markets reflected optimism about the potential direction of inflation and interest rates, with traders keenly awaiting signals from the Fed regarding its future monetary policy stance.

European shares were trading in the green, buoyed by a combination of strong corporate earnings reports and positive economic data from the Eurozone. The upbeat sentiment in Europe was further supported by the belief that the European Central Bank would continue its accommodative policies amid persistent inflation concerns.

In Asia, Japan’s Nikkei 225 index ended lower, dragged down by losses in some of its heavyweights, including Fast Retailing. The decline in the Nikkei was attributed to a mix of profit-taking and concerns over the global economic outlook, despite some sectors showing resilience.

Canada’s resource-heavy main stock index saw gains, primarily driven by a rise in oil prices. The increase in oil prices provided a boost to energy stocks, which constitute a significant portion of the Canadian market. The rally in commodities was supported by expectations of higher global demand and tighter supply conditions.

The U.S. dollar edged lower against a basket of currencies. This slight decline was influenced by cautious trading ahead of the Federal Reserve’s policy announcements, with investors adjusting their positions based on potential changes in interest rates and economic projections.

Gold prices remained rangebound, with the precious metal trading within a narrow range as market participants balanced between the dollar’s movements and the upcoming economic data releases. The stability in gold prices reflected a wait-and-see approach, as traders sought clearer signals from the Fed on the future path of interest rates and inflation.

Corporate Stock News

  • LVMH Investigation: Milan prosecutors are investigating the supply chain of around a dozen more fashion brands following the worker exploitation probe involving LVMH’s Italian unit.
  • Atos Negotiation: Debt-laden French tech group Atos is in exclusive negotiations to sell its Worldgrid unit to engineering consulting group Alten for 270 million euros.
  • Novo Nordisk Subpoena: The U.S. Senate health panel plans to vote on subpoenaing Novo Nordisk over high U.S. prices for its weight loss drugs, Ozempic and Wegovy.
  • Canadian Stocks: Investors in Canada are focusing on utilities and real estate stocks, which are expected to benefit from the Bank of Canada cutting interest rates.
  • Dollarama Performance: Dollarama reported higher quarterly sales and increased its stake in Dollarcity.
  • National Bank of Canada Acquisition: National Bank of Canada announced a $3.63 billion deal to acquire Canadian Western Bank.
  • Oracle Revenue Forecast: Oracle Corp forecasts double-digit revenue growth for fiscal 2025, driven by strong demand for AI-powered cloud services and a new partnership with OpenAI and Google Cloud.
  • Google Anti-Theft Feature: Google will test an AI-powered anti-theft feature for Android phones in Brazil, aiming to identify stolen phones and lock their screens.
  • Amazon Flex Drivers: Thousands of Amazon Flex drivers filed arbitration claims, alleging they were misclassified as independent contractors and seeking compensation for unpaid wages and expenses.
  • Aon War Insurance: Aon Plc and the U.S. International Development Finance Corporation are offering a $350 million war insurance program to support capital investment and economic recovery in Ukraine.
  • Apple’s Brand Value: Apple Inc. became the first brand to cross $1 trillion in brand value, with significant gains due to new AI features and a partnership with OpenAI for Siri.
  • BHP Labor Dispute: The Mining and Energy Union filed for orders to increase pay for labor-hire workers at BHP’s coal mines in Queensland, Australia.
  • Boeing Starliner: NASA and Boeing expect to return the Starliner spacecraft and its first astronaut crew to Earth from the ISS by June 18, later than initially planned.
  • Ford Job Cuts: Ford Motor Co plans to cut about 1,600 jobs at its assembly plant in Valencia, Spain, but is open to rehiring some workers in the future.
  • GameStop Equity Offering: GameStop completed an “at-the-market” equity offering, raising approximately $2.14 billion.
  • Microsoft-MediaTek Collaboration: MediaTek is developing an Arm-based chip for Microsoft’s Windows OS, aiming to challenge Apple’s Arm-based Mac chips.
  • Obsidian Energy Dispute: Woodland Cree First Nation ended its dispute with Obsidian Energy, allowing for the expansion of drilling operations on its traditional territory.
  • Rentokil Stake Acquisition: Nelson Peltz’s Trian Fund Management acquired a significant stake in Rentokil Initial Plc, pushing for strategic discussions with the company.
  • T-Mobile Legal Fees Challenge: Attorneys are challenging the $78 million legal fees in a data breach class action settlement, arguing it is excessive.
  • Tesla Insider Trading Lawsuit: Elon Musk is accused in a lawsuit of making billions by selling Tesla stock using insider information.
  • UnitedHealth Data Breach Notification: The U.S. Department of Health and Human Services will allow UnitedHealth to notify people whose data was exposed during a hack on its Change Healthcare unit.
  • BRICS Emissions: The BRICS nations emitted a record 1.98 billion metric tons of CO2 from power generation in the first quarter of 2024, surpassing other regions.

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