Canadian and U.S. stock futures are trending lower as apprehension grows about technology earnings due to the unveiling of DeepSeek, a new AI model from China's startup landscape. Additionally, concerns linger over U.S. President Donald Trump's policies, particularly his tariff threats, signaling a potential downward opening for stocks on Bay Street come Monday.
This week's market sentiment is expected to remain cautious, as several key central banks, including the Federal Reserve, Bank of Canada, and the European Central Bank, are poised to announce their interest rate decisions.
Barrick Gold Corporation announced on Sunday that a significant expansion at its Lumwana project in Zambia is contributing positively to the country's economy. Since 2019, the company has injected over US$3.7 billion into Zambia, with its 2024 investments alone amounting to US$887 million. Barrick maintains its position as one of the top five taxpayers in the nation.
Brookfield Asset Management has finalized two real estate investments in Japan, with a collective worth of $1.6 billion, as announced earlier today.
Friday saw the Canadian market close higher, marking its ninth consecutive session of gains, setting the longest winning streak in more than three years. However, potential new U.S. tariffs dampened market enthusiasm and constrained upward momentum.
The S&P/TSX Composite Index concluded up by 34.41 points, or 0.14%, at 25,468.49—its highest close in six weeks—posting a weekly increase of approximately 1.6%.
Asian markets closed predominantly lower on Monday, influenced by disappointing economic data from China and in anticipation of interest rate decisions from the U.S. Federal Reserve and the European Central Bank, which investors are keenly eyeing for guidance.
China's Shanghai Composite marginally decreased to 3,250.60. Recent data indicated an unexpected contraction in Chinese manufacturing activity for January, along with a sharp deceleration in non-manufacturing growth, sparking concerns about first-quarter 2025 growth prospects and the effectiveness of current stimulus measures.
European markets are experiencing declines, primarily driven by a sell-off in the technology sector. The advent of DeepSeek's advanced and cost-effective AI model from China raises concerns over its impact on the tech industry.
The combination of weak Chinese data and caution ahead of upcoming Fed and ECB policy decisions continues to impact stock performance.
In commodity markets, West Texas Intermediate Crude oil futures have decreased by $0.19, or 0.25%, to $74.47 per barrel. Gold futures are down by $3.80, or 0.14%, at $2,775.10 per ounce, while Silver futures have fallen by $0.250, or 0.8%, to $30.935 per ounce.
