Market Analysis: April 11th, 2025
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Canadian Markets
Canada's TSX index surged over 2%, driven primarily by a strong rally in commodity sectors, with oil and gold prices sharply higher amid ongoing geopolitical concerns and supply constraints. The jump in resource-linked stocks helped offset lingering concerns over sluggish economic growth, as recent data revealed that Canada's GDP per capita has declined for six consecutive quarters—a sign of potential economic stagnation despite headline growth figures.
American Markets
US stocks opened mixed but turned positive in the afternoon session as investors digested a fresh wave of earnings reports from major U.S. banks. While results were generally solid, markets were cautious amid renewed tensions in the U.S.-China trade conflict, which escalated with new tariff threats. The U.S. dollar weakened significantly, falling to its lowest level in over a decade against the Swiss franc, as traders sought safety in haven currencies.
European Markets
European markets traded lower, weighed down by fears of further trade concerns. Several iconic European exports—including Germany's Birkenstocks, beer, and Riesling wine—have been targeted by the U.S. for potential new tariffs. Despite these headwinds, the European Central Bank (ECB) reassured markets, stating that financial markets remain well-functioning, and that liquidity and credit conditions remain stable.
In the UK, stocks posted solid gains, led by energy and mining companies, which mirrored the global commodity uptrend. Economic sentiment was further boosted by data showing that the UK economy grew 0.5% in February, exceeding expectations. According to the Office for National Statistics (ONS), the services sector had a particularly strong month, contributing significantly to overall growth. Additionally, UK exports to the U.S. increased by £500 million, as businesses accelerated shipments to get ahead of the incoming U.S. tariffs.
Corporate Stock News
Alphabet Inc Google laid off hundreds in its platforms and devices unit (Android, Pixel, Chrome), following January buyout offers. The move aims for greater efficiency.
American International Group Inc Jefferies raises target price of AIG to $95 from $90, expecting faster EPS growth compared to peers.
Bank of New York Mellon Corp Q1 profit rose 17% to $1.15B or $1.58/share, aided by higher fee income from new clients and market volatility.
Berkshire Hathaway Inc Issued a 6-tranche yen bond totaling $626.7M, the smallest yen issuance by the firm. Also maintains investments in Japanese trading houses.
BlackRock Inc Q1 profit fell due to rising expenses ($3.58B vs. $3.04B).
Blue Owl Capital Corp Jefferies initiates Buy rating with $16 target, citing minimal exposure to tariffs, China, or autos.
BP Plc Expects Q1 gas trading to be 'weak'.
Casey's General Stores Inc KeyBanc initiates Overweight rating with $500 target, citing strong profitability and store expansion outlook.
Cenovus Energy Inc JPMorgan cuts target to C$32 from C$34 ahead of Q1 results.
Chevron Corp PDVSA canceled Chevron's Venezuelan crude loading authorizations; some loaded cargoes to return to ports.
Citigroup Inc Russian subsidiary clients received frozen coupon payments, signaling unfreezing of some sanctioned assets.
Cogeco Communications Inc RBC cuts target to C$76 from C$78, citing lower U.S. revenue growth at American Broadband.
Delta Air Lines Inc Tariff uncertainty delays Airbus A220 delivery. Plane may incur 25% duty; expected delivery in June.
Frontier Group Holding Inc Withdraws full-year outlook, warns of Q1 loss.
JD.Com Inc Launching a 200B yuan fund to boost domestic sales of export goods amid intensifying U.S.-China trade war.
JPMorgan Chase & Co Q1 profit up 9% to $14.6B or $5.07/share.
Lucid Group Inc Acquired assets/facilities from Nikola Corp (not the business/tech). Plans to employ 300+ former Nikola staff in Arizona.
Nike Inc Piper Sandler cuts target price to $70 from $90, citing macroeconomic volatility and prolonged uncertainty.
Stellantis NV Global Q1 shipments down 9% YoY to 1.2M vehicles.
Tesla Inc Suspended new orders for Model S/X in China amid rising tariffs.
Wells Fargo & Co WFC Q1 profit was up 6%, driven by strong wealth management.
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