Financial News

Global Markets Return to "Reality" on Fragile Iran War Ceasefire, Says Scotiabank

Markets had their fun on Wednesday and on Thursday it's back to "reality," said Scotiabank.Position covering drove exaggerated market responses to the fragile United States-Iran ceasefire on Wednesday, noted the bank.It was only a matter of hours before doubts crept back into markets about how fragile the ceasefire is, stated Scotiabank.Oil is up about US$4 to US$5/barrel, pointed out the bank. Stocks are broadly but gently lower, with North American futures down about 0.25%, European cash markets down by 0.25% to 1.25% after Asian equities backpedaled.Currencies are mixed, added Scotiabank. Sovereign bond yields are higher by single digits across gilts and eurozone government bonds, as U.S. Treasuries and Canadian government bonds hold firm.

G Mining Ventures Acquiring G2 Goldfields in All-Shares Transaction Valued at $3.0 Billion

G Mining Ventures (GMIN.TO) Thursday said it is acquiring G2 Goldfields (GTWO.TO) in an all-shares transaction valued at $3.0 billion. The transaction will consolidate two adjacent gold projects in Guyana: G2's Oko-Ghanie Project and G Mining's fully permitted and fully financed Oko West Project.The exchange ratio implies an offer price of $10.84 per G2 share based on the closing price of G Mining shares on the Toronto Stock Exchange as of April 8. G2 shareholders will receive 0.212 G Mining shares per G2 share held. G2 shareholders will also receive common shares in a newly created gold explorer (G3 SpinCo) that will hold interests in the Tiger Creek property, Peters Mine property and Property B.G3 SpinCo will also be funded with $45 million of cash, a statement said.When the transaction is completed in the second quarter of this year, G Mining and G2 shareholders will own 80.1% and 19.9% of G Mining, respectively, and G2 shareholders will also own 100% of G3 SpinCo.The transaction combines anticipated life of mine average gold production of 50 koz from G Mining's Oko West Project and 228 koz from G2's Oko-Ghanie Project into one project with the potential to produce over 500 koz on a LOM average basis. Oko-Ghanie's permitting timeline may also be accelerated by combining with the fully permitted Oko West Project and the targeted timeline for first gold production at Oko West in the second half of 2027 remains unchanged, G Mining said."Combining GMIN's Oko West Project and G2's Oko-Ghanie Project delivers on our stated vision to build and operate a large, long-life, Tier-1 asset in Guyana. These assets are highly synergistic, and we are well-positioned to accelerate value creation by leveraging our unique expertise in building and operating mines on schedule and on budget in the Guiana Shield, utilizing our deep knowledge of and network in the region to advancing permitting, and deploying our capital to build the mine. Once built, this mine has the potential to rank among the highest producing gold mines globally," said G Mining chief executive Louis-Pierre Gignac.G Mining shares closed down $0.14, to $51.11 on Wednesday on the Toronto Stock Exchange, while G2 Goldfields closed up $0.31, to $6.03.

Stocks Decline Pre-Bell Amid Uncertainty Over US-Iran Truce; Key Inflation Report on Deck

US equity markets were trending lower before the opening bell Thursday as investors assess uncertainty over the recent two-week ceasefire deal between the US and Iran, and await a key inflation report.The S&P 500 and the Dow Jones Industrial Average declined 0.3% each in premarket activity, while the Nasdaq was off 0.2%. The indexes finished Wednesday's trading in the green, recording their highest close in at least four weeks.In a Wednesday post on X, Iran's parliamentary speaker, Mohammad Bagher Ghalibaf, said the US violated three clauses of Tehran's 10-point ceasefire proposal. The violations include Israel's attacks on Lebanon, the entry of a drone into Iranian airspace and the denial of Tehran's right to enrich uranium, according to Ghalibaf."The deep historical distrust we hold toward the (US) stems from its repeated violations of all forms of commitments - a pattern that has regrettably been repeated once again," Ghalibaf said. "In such situation, a bilateral ceasefire or negotiations is unreasonable."In a late Wednesday post on Truth Social, President Donald Trump said US ships, aircraft and military personnel will "remain in and around Iran" until the "real agreement reached is fully complied with.""It was agreed, a long time ago, and despite all of the fake rhetoric to the contrary - no nuclear weapons and, the Strait of Hormuz will be open and safe," according to Trump.On Tuesday, Trump announced that he agreed to suspend attacks on Iran for a period of two weeks, subject to Tehran agreeing to the complete and safe opening of the strait, the world's most important chokepoint for crude flows. Iranian Foreign Minister Seyed Abbas Araghchi had said in a statement that the country will allow "safe passage" through the strait during the two-week ceasefire through coordination with its armed forces and "with due consideration of technical limitations."Delegations from both countries are scheduled to meet in Islamabad, Pakistan on Friday to negotiate a "conclusive agreement to settle all disputes," Pakistani Prime Minister Shehbaz Sharif said Tuesday.West Texas Intermediate crude oil rose 3.5% to $97.70 a barrel before the open, while Brent increased 3.3% to $97.87."The headlines may calm down first, but the real reset depends on what happens in the days ahead," Charu Chanana, chief investment strategist at Saxo Bank, said in a report Wednesday.The delayed personal income and outlays report for February is scheduled to be released at 8:30 am ET. The report includes the personal consumption expenditure core price index, the Federal Reserve's preferred inflation metric.Minutes from the Federal Reserve's March meeting showed Wednesday that participants emphasized the need for the central bank to be "nimble" in adjusting monetary policy amid heightened macro risks. Most policymakers were concerned that a prolonged war could soften labor market conditions, possibly warranting policy easing, according to the minutes. However, persistent inflation amid higher oil prices could call for rate increases.Markets widely expect the Fed to keep its benchmark lending rate steady at its next policy meeting later in April, according to the CME FedWatch tool.Treasury yields were down in premarket action, with the two-year rate retreating 0.5 basis points to 3.79% and the 10-year rate off 0.4 basis points to 4.29%.Thursday's economic calendar also has the delayed final estimate report for the fourth-quarter gross domestic product at 8:30 am, as well as the weekly jobless claims report.Shares of Constellation Brands (STZ) declined 0.9% pre-bell after the beer and wine company issued a full-year earnings outlook below Wall Street's estimates.Neogen (NEOG), BlackBerry (BB) and Simply Good Foods (SMPL) report their latest financial results before the bell, among others. WD-40 (WDFC) posts its earnings after the markets close.Gold sipped 0.5% to $4,752 per troy ounce, while bitcoin nudged up 0.2% to $71,399.

US Dollar Mixed Early Thursday Ahead of Jobless Claims, GDP, Personal Income

The US dollar was mixed against its major trading partners early Thursday -- up versus the yen and Canadian dollar, down versus the euro and pound -- ahead of a busy day of data releases, starting with weekly jobless claims, the third estimate of Q4 GDP, and personal income, spending and price data, all at 8:30 am ET.Wholesale inventory data for February is due to be released at 10:00 am ET, followed by weekly natural gas stocks data at 10:30 am ET. The Atlanta Federal Reserve's GDP nowcast estimate for Q1 is expected to be updated around midday.A quick summary of foreign exchange activity heading into Thursday:EUR/USD rose to 1.1674 from 1.1669 at the Wednesday US close but was below a level of 1.1691 at the same time Wednesday morning. There are no Eurozone data on Thursday's schedule. The next European Central Bank meeting is scheduled for April 30.GBP/USD rose to 1.3405 from 1.3401 at the Wednesday US close but was below a level of 1.3446 at the same time Wednesday morning. UK consumer sentiment declined in April, according to data released earlier Thursday. The next Bank of England meeting is scheduled for April 30.USD/JPY rose to 159.0189 from 158.5206 at the Wednesday US close and 158.4484 at the same time Wednesday morning. Japanese household confidence declined in March, while machine tool orders grew at an accelerated pace in the same month, data released overnight showed. The next Bank of Japan meeting is scheduled for April 27-28.USD/CAD rose to 1.3851 from 1.3840 at the Wednesday US close, but was below a level of 1.3868 at the same time Wednesday morning. There are no Canadian data on Thursday's schedule. The next Bank of Canada meeting is scheduled for April 29.

Persian Gulf Uncertainty Damps European Bourses Midday

European bourses tracked moderately lower midday Thursday as traders weighed Persian Gulf hostilities, rising oil prices, and an uncertain Strait of Hormuz opening.Oil stocks led gains on continental trading floors, while bank and tech shares lagged.Investors also eyed Wall Street futures in the red, and lower closes overnight on Asian exchanges.In other news, the US and Iranians are set for direct negotiations in Pakistan over the weekend, reported Turkey's Anadolu Agency, citing officials in Islamabad.The pan-continental Stoxx Europe 600 Index was off 0.7% mid-session.The Stoxx Europe 600 Technology Index was down 1.7%, and the Stoxx 600 Banks Index lost 0.6%.The Stoxx Europe 600 Oil and Gas Index rose 1.2%, while the Stoxx 600 Europe Food and Beverage Index declined 0.8%.The REITE, a European REIT index, fell 0.7%.On the national market indexes, Germany's DAX was down 1.3%, and the FTSE 100 in London lost 0.4%. The CAC 40 in Paris was down 0.9%, and Spain's IBEX 35 eased 0.8%.Yields on benchmark 10-year German bonds were higher, near 2.98%.Front-month North Sea Brent crude-oil futures were up 4.1% at $98.63 a barrel.The Euro Stoxx 50 volatility index was up 1.2% at 25.01, indicating above-average volatility for European stock markets in the next 30 days, a negative signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.

Middle East Oil, Gas Output Recovery to Take Months Despite Hormuz Ceasefire, Warns Wood Mackenzie

After the ceasefire between the US, Israel, and Iran this week, a recovery in oil and gas flows through the Middle East is still a long way off, with plenty of steps and processes that could last months, according to a report by commodity analysts at Wood Mackenzie.The report said that 11 million barrels per day of upstream oil production remains shut in, meaning they are not currently operational, even as the underlying capacity remains intact. This cannot be restored until export routes normalize and vessel traffic resumes at scale.In order to bring these barrels back to market, "A 'workable system' of transit and shipowner confidence in the security of the transiting vessels is essential," said Alan Gelder, SVP Refining, Chemicals and Oil Markets at Wood Mackenzie.Gelder added that facilitating insurance, trade finance and "sustained inbound vessel transits" are key in restoring confidence in the Strait.He also noted that ballasting vessels, or ships that come in empty to pick up oil, will not be willing to do so, given the risk of getting trapped, if hostilities were to resume once again after the two week ceasefire.The report noted that as exports begin to ramp-up, storage will help facilitate upstream production and refining to restart activity in full-swing.However, it noted that not all countries have sufficient storage. As such, Saudi Arabia and the UAE can ramp up output quickly, while Iraq could take six to nine months to return to pre-conflict output levels due to reservoir and operational complexities.Coming to the global gas markets, the ceasefire may allow trapped LNG cargoes in the Gulf to exit, offering limited near-term relief, according to Wood Mackenzie.For real structural change in supply, however, Qatar's Ras Laffan LNG facility has to restart its 12 operable trains, according to Tom Marzec-Manser, Europe Gas and LNG analyst at Wood Mackenzie. "It is unclear if QatarEnergy would consider doing this during a ceasefire," he said.The firm estimates that even if restart efforts begin in early May, full restoration of all 12 trains could take until the end of August, while damaged capacity at the South site may remain offline for years.Meanwhile, disruptions to domestic gas infrastructure in the UAE could further complicate regional supply dynamics, Marzec-Manser said.He warned that "sustained disruption at Habshan," Abu Dhabi's gas processing facility, could significantly tighten domestic gas availability, potentially forcing the UAE to cut reinjection volumes or even ramp up imports via the Dolphin pipeline system.

Oil, Ceasefire Views Damp Wall Street Pre-Bell; Asia, Europe Off

Wall Street futures pointed moderately lower pre-bell Thursday, as traders weighed rising oil prices and sought clarity on Persian Gulf war outlooks.The Strait of Hormuz apparently remained closed to the vast majority of oil tanker traffic early Thursday.In the futures, the S&P 500 fell 0.4%, the Nasdaq declined 0.4% and the Dow Jones was off 0.4%.West Texas Intermediate crude oil traded higher at $99.35, up 5.2% in morning trades.Investors also await the personal consumption expenditures-core (PCE-core) price index for February, slated for release in Washington at 8:30 am ET. The Federal Reserve's preferred inflation metric may provide clues to price pressures, but before the Middle East turmoils of March.Asian exchanges traded mostly lower overnight, while European bourses tracked moderately south midday on the continent.On the economic calendar, in addition to the PCE-core report, is the revised Q4 GDP bulletin, the weekly jobless claims bulletin, the February personal income and outlays report, and the Q4 corporate profit release, all at 8:30 am ET.In premarket action, Bitcoin traded at $71,431 and 10-year US Treasuries offered 4.28%. Spot gold commanded $4,740 an ounce.

Germany's Manufacturing Production Contracts in February on Lower Pharmaceuticals, Electronics Output

Production in Germany's manufacturing sector unexpectedly declined month over month in February, even before the war in the Middle East began, as output from the pharmaceuticals and electronics industries weakened, provisional data from the Federal Statistical Office showed Thursday.Real, price-adjusted manufacturing output dropped 0.3% in February, after seasonal and calendar changes, compared with the upwardly revised stagnation in January. The consensus estimate for February was a 0.9% rise.On a monthly basis, production of pharmaceuticals and computer, electronic, and optical products contracted 4.4% and 3.9%, respectively. Amid the cold winter weather, construction output slipped 1.2%, while automotive production improved 1.7%. Destatis data paints a picture of a "very reluctant, hesitant consumer," while the manufacturing sector struggles to gain positive momentum, said Carsten Brzeski, the global head of macro at ING.Annually, German manufacturing output after calendar adjustment was stable, against the revised 0.9% decrease in January. Excluding energy and construction, industrial production in February slipped 0.1% on the month and 0.6% on the year.In energy-intensive industries, which account for 17% of industrial gross value, production expanded 1.9% month over month and 0.1% on a yearly basis. Consumer goods production fell 1.5% sequentially, while the output of intermediate goods and capital goods rose by 0.4% and 0.1%, respectively. Germany, one of Europe's largest net importers of energy, clocked a 0.3% monthly gain in energy production in February."All in all, February's macro data shows that even without the war in the Middle East, the German economy was unfortunately on track for yet another quarter of contraction. To make things worse, the war in the Middle East, no matter how sustainable yesterday's announced ceasefire will prove to be, will leave clear marks on the German economy over the next few months. As much as we were hoping to finally comment on some good economic news from Germany, it is a bit like waiting for a German train these days: definitely delayed and uncertain whether it will ever arrive," Brzeski concluded.

Alkane Resources March 2026 Quarter Production Update

Alkane Resources (ALK.TO), which saw its shares rise by more than 5% and go close to 52 week highs in Canada yesterday, overnight Wednesday said it had produced 45,776 ounces of gold equivalent over the period from January 1, 2026 to March 31, 2026.In a statement ALK said cash ($328 million), bullion ($34 million) and listed investments ($12 million) totaled A$374 million at the end of the quarter. During the quarter, hedging of 8,700 ounces of gold was filled and tax instalments of $15 million were made.It added further details will be available in the full March 2026 Quarterly Report later this month.Alkane Managing Director & CEO, Nic Earner, said: "Alkane has had an excellent quarter's production from our three operating mines which together produced 44,669 ounces of gold and 377 tonnes of antimony (45,776 ounces of gold equivalent) over the quarter. We have a very strong balance sheet with A$374 million in cash, bullion and listed investments at quarter end and total liquidity of $472 million including undrawn revolving credit facility."Shares in ALK rose by more than 5% and went near to 52 week highs in Canada yesterday.

Orvana Minerals Reported Initial Results From Deep Drilling Program at Taguas, Argentina

Orvana Minerals (ORV.TO) overnight Wednesday reported an update on the progress to date, initial assay results, and planned next steps of the ongoing deep drilling campaign at its 100%-owned Taguas Project in San Juan, Argentina.Among highlights, ORV in a statement said drilling is ongoing on the first deep drill hole (TADD-278) at Taguas, which had reached a depth of approximately 1,326 meters as of April 7. The company added its objective is to advance the drill hole to the "maximum feasible depth", currently targeted at between 1,500 and 2,000 meters.ORV also said drilling has intersected a "vertically zoned hydrothermal system, transitioning from a high-sulfidation epithermal environment into a deeper porphyry setting". It added preliminary assay results and the identified mineralogy support the interpretation that drilling remains within the upper to intermediate levels of the mineralized system.Raul Alvarez, Director of Exploration and Technical Services of Orvana, said: "We are encouraged by the results obtained to date. The upcoming metres of drilling are expected to further improve our understanding of the Taguas mineral system."Shares in ORV edged up $0.01 to $1.73 in Canada.

Indian Equities Slip on Thursday Amid Rising Middle East Tensions

Indian equity benchmarks ended lower on Thursday as renewed geopolitical tensions and rising crude oil prices weighed on sentiment.The BSE Sensex fell 1.2%, or 931.25 points, to finish Monday's session at 76,631.65, while the NSE Nifty 50 slipped 0.9%, or 222.25 points, to 23,775.10.Investors were cautious after fresh Israeli strikes in Lebanon reduced hopes for a two-week U.S.-Iran ceasefire and reopening of the Strait of Hormuz.Canara Bank's (NSE:CANBK, BOM:532483) board has extended Hardeep Singh Ahluwalia's additional charge as managing director and CEO for three months until June 30.Dilip Buildcon (NSE:DBL, BOM:540047) joint venture DBL-RBL won a 2.68-billion-rupee contract from the Gujarat government. The project covers the design and construction of the Ged Barrage across the Sabarmati River, including protection and allied works.

Canada's Provincial Bond Valuations "Hint" at An Oil Exposure Premium, Says National Bank

In a nod to recent Middle East turbulence, National Bank of Canada said it tested the significance and value of a Canadian province's relative energy-sector exposure.Notwithstanding a sharp re-pricing of crude oil on an 11th hour Iran war ceasefire, provincial bond valuations hint at an oil exposure premium, noted the bank.That's sensible enough, given the amount of above-plan resource revenue National Bank has been estimating, it stated.The bank likewise finds targeted evidence of political risk at the longer end of the provincial credit curve.

Middle East War Dents Japan Consumer Confidence

Undercut by Middle East war and rising fuel prices, Japan's seasonally adjusted Consumer Confidence Index declined to 33.3 in March, down from 39.7 in February, reported the Cabinet Office on Thursday.Consumer confidence index readings above 50 indicate optimism and improved mood, while results below 50 reflect pessimism.In the subcategories, the March index for "overall livelihood" logged 29.7 in March, down from 39.5 in February.For "income growth," the consumer index struck 39.8 in March, off from 42.3 in February, said the Cabinet Office.The "employment" index posted at 37.6 in March, off from 43.3 in the previous month.And the "willingness to buy durable goods" index declined to 26.0 in March, off from 33.7 in February, said the Cabinet Office.With fuel bills in mind, 93.1% of survey respondents in March expected overall prices to rise in the next 12 months, noted the Cabinet Office.The consumer confidence index survey was conducted on March 15, and polled 8,400 households, with a 76.3% response rate, added the Cabinet Office.The declining consumer confidence report followed on the heels of a soft Economy Watchers bulletin, issued on Wednesday.Japan's Economy Watchers Survey index fell to 42.2 in March from 48.9 in February, striking the lowest level since February 2022.The monthly Japan Economy Watchers Survey measures the economic sentiment of workers in consumer-facing industries, such as taxi drivers, hotel staff, and restaurant employees.

Japan Machine Tool Orders Jump 28% in March

Japanese machinery orders rose 28% year over year to 193.51 billion yen in March, the Japan Machine Tool Builders Association (JMTBA) reported Thursday.The figures reflect a rebound in global industrial capital expenditure, as well as increased industrial demand, according to an analysis by trading platform AInvest on the same day.The figure surpassed a 24% increase in the previous month, AInvest said.External demand jumped 40% year over year to 143 billion yen during the month, while domestic demand edged up 2.5% year over year to 50.5 billion yen, the JMTBA said in its March report.For the first quarter, total orders increased 26% year over year to 485.8 billion yen.External orders surged 35% year on year to 365.5 billion yen, while domestic orders inched up 4.6% to 120.3 billion yen.

Market Chatter: QatarEnergy Initiates LNG Production Restart at Ras Laffan Complex

QatarEnergy is preparing to resume liquefied natural gas (LNG) and associated liquids production at the world's biggest such facility for the export market, Reuters reported Wednesday citing sources familiar with the matter.Sources close to the company indicated that two out of the three conventional liquefaction trains at the QELNG North 1 facility in Ras Laffan Industrial City have been successfully brought back online, as per the report.Following a series of aerial attacks on its primary infrastructure in March, QatarEnergy was forced into a total production suspension of LNG and associated liquids at Ras Laffan, the world's largest LNG export facility.Wood Mackenzie analysts suggested that returning the entire 12-train Ras Laffan complex to full service could still take several months.Qatar's export capabilities also remain tethered to the volatile security situation in the Strait of Hormuz.Iranian naval forces continue to enforce a restrictive permission-based transit system, reportedly warning that the waterway remains effectively shut to uncoordinated commercial traffic.Consequently, while Qatar may be able to fill its storage tanks, a return to normal global deliveries is dependent on shipping corridors reopening.The company did not respond immediately to' request for comments.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Middle East War Uncertainty Caps Asian Stock Markets

Asian stock markets largely fell back Thursday, as traders looked for clarity on the status of the Strait of Hormuz and the Persian Gulf war.Hong Kong, Shanghai, and Tokyo finished in the red, while other regional exchanges were mixed.In Japan, the Nikkei 225 opened evenly but declined in trading, finishing off 0.7% as traders booked profits after Wednesday's rally following reports of a Middle East ceasefire.The benchmark Nikkei 225 fell 413.10 to 55,895.32, as losing issues outnumbered gainers 169 to 54.Leading the upside was Yokogawa Electric, up 4.1%, while retail conglomerate Aeon declined 8.2%.In economic news, Japan's seasonally adjusted Consumer Confidence Index declined to 33.3 in March, down from 39.7 in February, reported the Cabinet Office.Japan's machine tool orders jumped by 28.1% year-on-year in March, driven by a 40.4% surge in offshore demand, reported the Japan Machine Tool Builders Association.In Hong Kong, the Hang Seng Index opened lower and could not recover, closing down 0.5% on ebbing optimism regarding Middle East negotiations.The broad gauge Hang Seng fell 140.62 to 25,752.40 as losing issues outnumbered gainers 53 to 36. The Hang Seng TECH Index lost 2.1% on the day, while the Mainland Properties Index fell 0.3%.Leading the upside was aluminum producer China Hongqiao, gaining 5.2%, while property company Longfor declined 5.6%.On the mainland, the Shanghai Composite fell 0.7% to 3,966.17.On the other regional exchanges, the South Korean KOSPI fell 1.6%; the Taiwan TWSE rose 0.3%; the Australian ASX 200 gained 0.2%; the Singapore Straits Times Index fell 0.4%, and the Thai Set inclined 0.3%. In late trading in Mumbai, the Sensex was down 1.2%.The MSCI All Country Asia Pacific Index fell 0.9% on the day.

Convatec Launches New Strategy to Hit Upgraded Revenue Targets

Convatec Group (CTEC.L) on Thursday detailed its new strategic plan to help achieve its aims of fast-tracking "sustainable and profitable" growth and reaching recently upgraded midterm revenue goals.In a same-day release, the medical products and technologies company said its Accelerate strategy marks the next stage of its growth ambitions and builds on its FISBE framework, which stands for focus, innovation, simplify, build, and execute.The new strategy is structured around four pillars, including customer-focused growth, the use of its innovation pipeline and artificial intelligence technology to address patient needs, as well as culture, purpose and performance. The fourth strategic cornerstone, execution excellence, is focused on rapid, "right first time, on-time on-budget" delivery and shortened innovation cycle timelines to streamline operations, improve productivity and meet its goals."Convatec delivers innovative medical solutions to improve the lives of millions of people living with chronic conditions. The opportunity for future growth is substantial. Our Accelerate strategy is how we will deliver the next chapter of Convatec's exciting story," Chief Executive Officer Jonny Mason said.The group's medium-term outlook now targets an annual organic revenue growth of between 6% and 8%, up from the prior 5% to 7% range. Convatec projects its infusion care unit to grow by double digits, as it expects mid-to-high single-digit growth for its advanced wound care, ostomy care, and continence care divisions.Additionally, the group guided to an adjusted operating margin of between 24% and 26% by 2027, compared with 22.3% in 2025. It also expects "sustainable" double-digit adjusted annual EPS growth and a double-digit free cash flow to equity compound annual growth rate.The London-listed stock was nearly 3% in the red by Thursday midday trade.

Constellation Issues Weak Full-Year Earnings Outlook as Fiscal Fourth-Quarter Results Decline

Constellation Brands (STZ) shares inched lower early Thursday after the beer and wine company provided a full-year earnings outlook below Wall Street's estimates and recorded year-over-year declines in its fiscal fourth-quarter results.The maker of Modelo and Corona anticipates comparable earnings to come in between $11.20 and $11.90 per share for fiscal 2027, it said late Wednesday, while the current consensus on FactSet is for $12.38. In the previous fiscal year, comparable EPS dropped 14% to $11.82 on an annual basis.In April 2025, the company projected EPS to grow by mid-single-digits to low-double-digits for fiscal 2027. Constellation also withdrew its previously issued fiscal 2028 outlook to reflect the current environment, it said.Enterprise organic sales, beer sales and organic sales in the wine and spirits division are all expected to range from a 1% decline to a 1% rise for the ongoing fiscal year, according to Constellation. Company-wide organic sales slid 10% in fiscal 2026."Looking ahead to fiscal 2027, while we are encouraged by the momentum displayed during the fourth quarter across our beer and wine and spirits businesses, we expect the operating environment to remain dynamic given the evolving socioeconomic backdrop and limited near-term visibility," the company said.The stock declined 0.8% in the most recent premarket activity.The company posted adjusted EPS of $1.90 for the three-month period ended Feb. 28, down from $2.63 the year before, but ahead of the Street's view of $1.71. Net sales fell 11% to $1.92 billion, beating the average analyst estimate of $1.88 billion."Despite the dynamic operating environment in fiscal 2026, we remained focused on the factors within our control and executed with discipline," Chief Executive Bill Newlands said in the earnings release. "We expect consumers will continue to navigate a shifting macroeconomic environment, but we remain encouraged by the momentum we saw in the fourth quarter."Beer revenue ticked up 1% to $1.73 billion, buoyed by shipment growth of 1.1% and favorable pricing. The division's depletion rate, or the pace at which units are sold to end consumers, edged up 0.6%, as gains in the Pacifico, Victoria and the Modelo Chelada brands more than offset declines in Modelo Especial and Corona Extra.Sales of wine and spirits tumbled 58% to $194.2 million, amid a 73% plunge in shipment volume. This reflected the impacts of the divestiture of certain wine and spirits brands, strategic pricing actions on certain brands and changes in distributor contract obligations, the company said. The division's depletion rate inclined 8.3%.

Canada's Vulnerability Stands Out Among Trade Partners Amid U.S. Tariffs, Says RBC

Despite the unprecedented scope of the United States tariffs, major economies weathered the trade shock in 2025, but with significant distributional shifts under the surface, said RBC.U.S. imports reoriented rapidly away from higher-tariffed regions like China, but still rose overall in 2025 as American consumers, businesses, and governments continued to spend, noted the bank. Almost 90% of global trade that doesn't involve the U.S. continued to grow.Distributional impact has been concentrated, stated RBC. Headline gross domestic product in Canada held up better than feared, while specific sectors -- steel exports were down 30%, motor vehicles, aluminum -- and regions, such as Ontario and Quebec with an over 6% effective tariff rates, have been hard hit.Canada's heavily integrated cross-border supply chains are a challenge that most offshore U.S. trade partners don't face, pointed out the bank. Canada's share of the U.S. import market declined in 2025 despite almost 90% of exports remaining tariff-free.The world can absorb U.S. trade shocks, while Canada cannot as easily, according to RBC. The year marked global resilience to trade policy uncertainty, and the U.S. share of Canada's exports declined. But, it is still high at 71.6%, leaving Canada fundamentally more exposed than most other trade partners.

Brent Crude Up 3.25% at US$97.85 and NY Crude Up 3.4% at US$97.65