Market Analysis: April 9th, 2025

Globe and Mail

09-04-2025

Global Market Update
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Canadian Markets
Canada's Toronto Stock Exchange (TSX) opened lower on Wednesday as traders were digesting headline news and looking for direction. President Trump's reciprocal tariffs on dozens of countries, which recently took effect placed significant pressure on the commodities sector, notably causing a sharp decline in oil prices. Canada ramped up its own retaliatory actions by implementing similar tariffs on vehicles imported from the United States. However, in a key difference, Canada's tariffs will not apply to auto parts or vehicles imported from Mexico, which remains an important trading partner. This move is part of Canada's ongoing efforts to defend its interests amid the escalating trade war between the U.S. and several countries. President Trump has also announced that the U.S. will impose a 34% duty on Canadian softwood lumber, set to take effect this fall. This could further strain the Canadian economy, as softwood lumber is a vital industry for Canada. These trade tensions have exacerbated the uncertainty surrounding global trade and continue to weigh heavily on market sentiment.
American Markets
U.S. markets were mixed in the morning as Treasury bonds experienced fresh selling pressure. The sell-off in U.S. Treasuries, part of the roughly $29 trillion Treasury market, forced investors to liquidate even their safest holdings to raise cash. This volatility in the Treasury market has ripple effects across the globe, leading to higher borrowing costs and increasing pressure on central banks worldwide to take action.
By the afternoon, President Trump made an announcement indicating a shift in his trade policy, revealing that he would pause tariffs on countries with which the U.S. is currently in trade talks. However, his stance toward China remained firm, with Trump imposing additional tariffs on Chinese goods, pushing the tariff rate on certain Chinese imports to 125%. The WTO has forecasted that trade between USA and China could decrease by as much as 80% as a catalyst of the tariffs.
European Markets
European closed the day falling by 3%, as a result of losses in key sectors like pharmaceuticals and energy. The European Union (EU) retaliated against Trump's trade policies, approving retaliatory measures worth over €20 billion. Forecasts suggest that the tourism industry in the EU is projected to create 4.5 million new jobs by 2035.
U.K. markets fell just under 3 percent, as the British economy has been hit by lowered growth forecasts for 2025, with economists now predicting just 0.8% expansion, down from the earlier forecast of 1.2%. Long-term government borrowing in the U.K. surged to levels not seen in over 25 years on Wednesday, reflecting rising financial pressures and the government's need to finance increased spending and deal with economic uncertainty. Meanwhile, U.K. lenders have cut their mortgage rates in response to these developments. consumers.
Corporate Stock News
Alphabet Inc: Google reached an agreement to modify its automotive services and maps platform to end a German antitrust investigation, avoiding a potential fine.
Apple Inc: Apple supplier Luxshare is exploring shifting production outside China, including the U.S., to mitigate the impact of U.S. tariffs.
Blackstone Inc: The firm closed a $10.8 billion European property fund, betting on a market recovery despite ongoing turmoil.
Bristol-Myers Squibb Co: Won the dismissal of a class action lawsuit accusing it of fraudulently maintaining a monopoly on its blood cancer drug, Pomalyst.
Chevron Corp: Plans to expand its use of a technique to fracture rock in multiple wells simultaneously, aiming to reduce costs and increase oil output in the Permian basin.
Comcast Corp: Announced plans for its first Universal theme park in Europe, expected to create thousands of jobs in Bedford, U.K., by 2031.
Constellation Brands Inc: Scrapped its diversity, equity, and inclusion (DEI) programs, shifting focus to local small businesses instead of diverse suppliers.
Constellation Energy Corp: Defended its planned acquisition of Calpine against protests by consumer groups, arguing the deal would not harm competition.
Costco Wholesale Corp: Held productive discussions with the Iowa Attorney General over its diversity policies amid legal challenges from Trump's administration.
Delta Air Lines Inc: Forecast lower-than-expected profit for the current quarter due to stalled travel demand, largely attributed to Trump's tariffs. Reduced capacity growth expected in the second half of the year.
Mondelez International Inc: Piper Sandler raised the target price, believing the company will not be significantly impacted by reciprocal tariffs due to its compliance with USMCA.
RPM International Inc: JPMorgan lowered its target price following the company's soft third-quarter results and reduced fourth-quarter guidance.
Rxsight Inc: Needham reduced its target price after the company lowered its revenue guidance due to macroeconomic headwinds.
Santander: Spain's Santander is exploring options for its $8 billion majority stake in its Polish unit, including a potential sale.
Tesla Inc: The FBI is investigating the damage to a Tesla Supercharger station in Washington after a reported explosion that temporarily shut it down.
Tilray Brands Inc: Canaccord Genuity lowered the target price, warning that the company's growth may be impacted by delays in international sales.
United States Steel Corp: Investor Ancora Holdings reversed its stance and supported the merger with Japan's Nippon Steel, while also proposing a cash offer.
Volkswagen Group: VWAGY more than doubled its deliveries of battery-electric vehicles in Europe in the first quarter, signaling growing EV demand.