Market Analysis: June 10th, 2025
Canadian Markets
Canada's main stock index traded flat on Tuesday, as gains in the energy sector—spurred by higher oil prices—were offset by growing signs of economic strain. Analysts point to stress levels among Canadian businesses not seen since the 2009 financial crisis, suggesting that elevated borrowing costs and slowing consumer demand are beginning to take a toll. Despite the broader market's pause, energy stocks gained momentum, reflecting optimism around commodity prices.
BMO's head of exchange-traded funds (ETFs) commented on the strategic potential of gold in the current environment. 'It may look overbought at these levels,' the strategist noted, 'but there's a compelling case for including gold as a portfolio hedge, especially amid economic uncertainty and geopolitical tension.'
American Markets
American stock markets were mixed, with investors taking a cautious stance as they awaited the outcome of the second day of trade negotiations between the United States and China. Central to the discussions is U.S. access to China's rare earth minerals—critical components in electronics and defense industries. While both sides are signaling a willingness to engage, negotiators are facing complex and sensitive issues that have deepened the rift between the two economic giants over the past year.
Tech investors were also watching closely as Apple concluded its annual Worldwide Developers Conference (WWDC). The event, widely anticipated for artificial intelligence (AI) breakthroughs, underwhelmed in that regard. However, Apple did unveil a major redesign of its software—its most significant interface overhaul in over a decade—potentially laying the groundwork for future AI integrations.
European Markets
European markets also traded mixed, with some indices weighed down by financials—particularly Swiss banking giant UBS, which faced renewed scrutiny and profit-taking pressure. Inflation in Ukraine surged to 15.9% year-over-year in May, primarily driven by rising food prices. The Bank of Spain revised its growth forecast slightly upward, expecting GDP expansion of between 0.5% and 0.6% in the second quarter.
In the UK, economic data painted a cooling labor market. Pay growth decelerated sharply, and unemployment rose to its highest level in nearly four years in the three months to April. This combination of softening wage pressures and rising joblessness strengthens the case for further interest rate cuts by the Bank of England. In response, the British pound (GBP) faced sharp selling pressure across global currency markets, with traders pricing in a more dovish central bank outlook.
Corporate News
Air Products U.S.-based gas and chemical firm interested in DIG Airgas.
ArcBest Corporation BoFA Global Research raises target price to $74 from $63 due to momentum with core customers.
Avidity Biosciences Inc Barclays raises target price to $59 from $57 after favorable clinical and regulatory news.
Brookfield Asset Management Ltd & KKR & Co Inc Potential bidders for Macquarie's DIG Airgas, valued up to $3.6 billion. Also attracting interest from Air Liquide, Air Products, I Squared Capital, and Stonepeak.
Cameco Corp Scotiabank raises target price to C$93 from C$88, citing improved financial performance.
Carvana Co BoFA Global Research raises target price to $375 from $325, expecting benefit from used car market shift.
Enghouse Systems Ltd CIBC cuts target price to C$25.50 from C$30 due to economic volatility impacting client spending.
Hewlett Packard Enterprise Inc & Nvidia Corp Partnering with Germany's Leibniz Centre to build 'Blue Lion' supercomputer using Nvidia's Vera Rubin chips. Nvidia also unveils Europe's fastest supercomputer 'Jupiter' and a new climate AI model.
International Business Machines Corp (IBM) Plans to have a practical quantum computer by 2029 and a larger system by 2033. Building the 'Starling' quantum computer with 200 logical qubits.
Merck & Co Inc FDA approves RSV preventive antibody Enflonsia for infants. Will be priced at $556 per dose.
Meta Platforms Inc CEO Mark Zuckerberg forming a new AGI team, planning major investments including a deal with Scale AI.
Morgan Stanley Marketing $5B in bonds and loans for Elon Musk's xAI. Floating-rate and fixed-rate options offered.
Oracle Corporation Morgan Stanley raises target price to $175 from $160, citing strong expected Q4 bookings.
Paramount Global & Roblox Corp Paramount CFO Naveen Chopra to join Roblox. Paramount merger with Skydance pending FCC approval. Roblox gains Gen Z engagement and diversifies into advertising.
Recursion Pharmaceuticals Inc Laying off ~20% of staff to cut costs and focus on rare diseases and cancer drugs. Cash runway extended to late 2027.
Southern First Bancshares Inc Piper Sandler initiates coverage with $43 target, citing benefits from interest rate trends.
T-Mobile US Inc CEO Mike Sievert may step down before contract ends; COO Srini Gopalan is a leading candidate to succeed him.
United Natural Foods Inc Took systems offline after detecting unauthorized network activity. Temporary disruptions expected.
Walt Disney Co Completed Hulu acquisition, paying NBCUniversal an additional $438.7M. Now holds full control of Hulu.
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