Market Analysis: June 18th, 2025
Global Markets
Canadian Markets
Canada's main stock index rose modestly on Wednesday, as investors and traders digested the comments from the Bank of Canada, which opted to 'Hold' its key interest rate steady recently. The BoC cited an 'unpredictable' economic environment as the primary reason for the pause in rate cuts. Although inflation has cooled somewhat, policymakers remain concerned about mixed signals in consumer spending, business investment, and global economic trends. The BoC emphasized it will remain data-dependent in future decisions.
American Markets
U.S. markets traded mixed as investors digested the latest Federal Reserve policy update. The Fed held its benchmark interest rate steady at 4.25%-4.5% , marking the fourth consecutive meeting with no change.
The central bank reiterated its projection for two interest rate cuts by year-end, a signal that it still sees room to ease monetary policy in the second half of 2025—provided inflation continues to cool.
On the labor front, new data from the U.S. Department of Labor showed that jobless claims fell slightly to 245,000 from 250,000 the week prior. Though marginally better than expected, the number remains relatively elevated, suggesting softening in the job market—a potential relief for the Fed's inflation concerns, but also a sign of slowing economic momentum.
European Markets
European stocks closed broadly lower. Sentiment was weighed down by concerns over France's economic growth, with projections now showing only a 0.6% GDP expansion for 2025. The tepid outlook comes amid rising political uncertainty following recent election results and elevated public debt levels.
In the United Kingdom, markets fared slightly better, where markets closed marginally higher, buoyed by in-line inflation data. The U.K.'s annual inflation rate slowed to 3.4% in May, matching economist expectations. This reinforced speculation that the Bank of England may be nearing a pivot toward rate cuts, possibly as early as the next few months, providing some support for consumer-facing sectors and rate-sensitive industries.
Corporate News
American Airlines Inc
Bernstein cut price target from $15 to $14 due to rising jet fuel costs impacting Q3 margins.
Blackstone Inc
Cirsa (owned by Blackstone) to raise €460M in Madrid IPO: €400M new shares, €60M secondary. Proceeds to fund growth and reduce debt.
Boeing Inc & General Electric Co
Investigators believe emergency system was engaged in Air India crash. Raises questions about engine performance; aircraft used GE GEnx engines.
Definity Financial Corp
RBC initiates with Outperform rating, target C$87, citing benefits from Travelers acquisition.
Delta Air Lines Inc
Bernstein lowers target from $61 to $60, citing weak demand and pressure to reduce flight capacity.
General Mills Inc
Will eliminate artificial colors and dyes from all U.S. retail and school foods by end of 2027.
Goldman Sachs Group Inc
Revamps Asia operations, unifying teams to expand investment banking presence and boost deal flow in the region.
Groupe Dynamite Inc
RBC raises target to C$27 from C$23 after stronger-than-expected Q1 earnings.
Hasbro Inc
Cuts 3% of global staff (~150 roles) to reduce exposure to China tariffs; speeding up sourcing diversification.
Jabil Inc
JPMorgan lifts target to $214 from $180 citing strong performance in AI strategy and execution.
Keyera Corp
Buying Plains' Canadian NGL business for C$5.15B, adding infrastructure across Alberta, Saskatchewan, Manitoba, Ontario. Deal closes Q1 2026.
Meta Platforms Inc
OpenAI CEO says Meta offered staff up to $100M bonuses to switch jobs; called Meta a top AI rival.
Nvidia Corp
Malaysia investigates reports of Chinese firms using Nvidia chips for AI model training in local data centers.
Sarepta Therapeutics Inc
TD Cowen cuts target to $24 from $62, citing expected FDA revocation of Elevidys approval.
TC Energy Corp
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