Global Markets
Canadian Markets
Canada’s TSX droppes as broad weakness in commodities weighed heavily on the mining and energy sectors, two of the index’s largest components. Falling commodity prices reflected softer global demand and investor caution, particularly in metals and oil.
Canada’s CPI report showed that the inflation rate eased slightly to 2.3% in January, according to Statistics Canada, down from December’s 2.4%. This slight decline came as gasoline prices fell 16.7% year-over-year, helping pull down the headline inflation rate. Economists had largely expected inflation to remain steady, so the downward move was slightly surprising. Excluding volatile items such as gas, the core inflation rate rose to 3%, indicating that underlying price pressures in the economy remain present. Grocery inflation also eased, falling to 4.8% from 5% in December, but still the highest in the G7 nations.
American Markets
American stocks ended the session slightly higher following a day of volatility, reflecting mixed investor sentiment. Traders remain cautious as fears of artificial intelligence (AI)-driven disruption continue to weigh on certain sectors, particularly technology and labor-intensive industries, where AI adoption could significantly reshape business models and workforce requirements.
Investors are now shifting focus toward the U.S. personal consumption expenditure (PCE) report, scheduled for release on Friday. The PCE is a closely watched gauge of inflation, preferred by the Federal Reserve over the consumer price index (CPI) because it captures a broader set of consumer spending data and adjusts for changes in spending patterns. Analysts anticipate that the report could provide insights into whether inflationary pressures are easing or persisting, which in turn may influence the Fed’s decisions on interest rates.
Markets are likely to react to subtle signals in the report, such as core PCE, which excludes volatile food and energy prices. A higher-than-expected reading could reinforce expectations of additional rate hikes or extended monetary tightening, while a lower reading might signal that the Fed could adopt a more dovish stance, possibly slowing or pausing future increases.
Investors are balancing this inflation data against the backdrop of ongoing AI-related market shifts, with some sectors benefiting from AI adoption while others face potential disruption.
European Markets
European stocks rallied across major indices, supported by a rotation into defensive sectors as investors reassessed risk exposure amid ongoing concerns about artificial intelligence disrupting traditional business models. Rather than chasing high-growth technology names, portfolio managers shifted capital toward more stable, cash-generative industries such as utilities, consumer staples, healthcare, and telecommunications.
This rotation reflects a broader de-risking strategy. While AI is viewed as a long-term productivity driver, investors remain cautious about near-term earnings disruption in sectors vulnerable to automation, cost restructuring, and competitive displacement. Defensive stocks, which typically exhibit lower volatility and more predictable earnings streams, attracted inflows as investors sought stability.
Market breadth improved across the eurozone, with gains recorded in Germany, France, and Southern European markets. Lower bond yield volatility also supported equities, easing some of the pressure seen earlier in rate-sensitive sectors.
In the UK, stocks also posted gains primarily driven by stronger-than-expected corporate earnings results. Several large-cap companies reported resilient revenue growth and margin stability, helping lift broader market sentiment.
New data showed that unemployment continues to edge higher, reinforcing concerns about slowing economic momentum. While moderating wage pressures could help ease inflation concerns, the labour market softening introduces further downside risks to GDP growth.
Corporate Stock News
AeroVironment Inc (AVAV): JPMorgan initiates coverage with an Overweight rating and a $320 target, citing strong growth prospects in defense-related markets.
Alibaba Group Holding Ltd (BABA): Unveiled new AI model Qwen 3.5, claiming improved performance and cost efficiency, with 60% lower cost and eight times better processing than predecessor.
Bank of America Corp (BAC): Approved $41M total compensation for CEO Brian Moynihan in 2025, up 17.1% from 2024.
Bank of Nova Scotia (BNS:CA): Scotiabank’s 1832 Asset Management dissolved its stake in Israeli arms manufacturer Elbit Systems after activist pressure.
Barrick Mining Corp (ABX:CA): Mali approved 10-year renewal of Loulo gold mining permit; company withdraws World Bank arbitration and regains operational control.
Chevron Corp (CVX) & Exxon Mobil Corp (XOM): Consortium signs lease to search for natural gas in Greece; Chevron to lead exploration in four blocks.
Danaher Corp (DHR) & Masimo Corp (MASI): Danaher is pursuing a $10B deal to acquire Masimo, expanding into patient-monitoring products.
Eli Lilly & Co (LLY): Plans to use India as a hub for global supply chain, exporting locally produced drugs worldwide.
Exxon Mobil Corp (XOM): California AG’s bid to dismiss defamation lawsuit rejected; company defending advanced plastics recycling efforts.
FedEx Corp (FDX): Aberdeen to vote against €7.8B takeover of InPost, citing undervaluation.
Goldman Sachs Group Inc (GS): Preparing to remove DEI factors from board candidate assessment following shareholder request.
Intuitive Machines Inc (LUNR): B. Riley raises target price to $25 from $20 on favorable space and lunar commercialization outlook.
Kinsale Capital Group Inc (KNSL): Jefferies cuts target price to $392 from $433, citing continued competition in commercial property.
Lowe’s Companies Inc (LOW): Eliminating 600 corporate roles to focus on store employees.
Meta Platforms Inc (META): Spanish government orders investigation into X, Meta, TikTok for allegedly spreading AI-generated abusive material.
Mohawk Industries Inc (MHK): Jefferies raises target price to $144 from $128 after strong Q4 results and 2026 outlook.
Paramount Skydance Corp (PRIVATE): Rene Augustine named SVP of global public policy; Warner Bros Discovery considers reopening sale talks.
Portland General Electric Co (POR): Partners with Manulife to acquire $1.9B of Washington state generation and utility assets from PacifiCorp.
Sanofi SA (SNY): Expanding global capability center in Hyderabad; workforce to grow beyond 4,500 with multi-hundred-million investment.
Uber Technologies Inc (UBER): Expanding food-delivery operations into seven new European markets, expecting $1B additional gross bookings over 3 years.
Valero Energy Corp (VLO): Plans to purchase up to 6.5M barrels of Venezuelan crude in March for Gulf Coast refineries.
Walt Disney Co (DIS): ByteDance addresses IP concerns with AI video generator Seedance 2.0 following threats from Disney.
Warner Bros Discovery Inc (WBD): Attracted activist investor Sachem Head; preparing for streaming and studio sale to Netflix.
Yelp Inc (YELP): JPMorgan cuts target price to $22 from $30 after modest Q4 beat and weak 2026 outlook.
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