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Investor.Coffee (11.12.2024): Global Markets Brace Amid U.S. Crypto Surge and Canada-U.S. Trade Policy Watch

Good morning, readers! Today’s Investor.Coffee newsletter brings a global perspective as markets respond to recent U.S. election results, changing energy policies, and pivotal corporate developments. Canadian markets face pre-market challenges due to falling metal prices, while investors await key earnings announcements from CAE Inc. (TSX: CAE), Finning International Inc. (TSX: FTT), and Suncor Energy Inc. (TSX: SU). In the U.S., the cryptocurrency surge continues, driven by expectations of a crypto-friendly administration, and Visa Inc. (NYSE: V)‘s partnership with Affirm Holdings, Inc. (NASDAQ: AFRM) highlights the growing trend of flexible payment solutions. Meanwhile, the UK and Australian markets remain steady, with updates from Shell Plc (LSE: SHEL) and mining giants underscoring the day’s news. We also see significant updates from Asia and Europe, as global indices fluctuate and Bitcoin rides high. Dive into today’s updates and notable company news highlights for insights into this dynamic market landscape.

Canadian Market Update

In the Canadian markets, futures indicated a pre-market dip, influenced by lower metal prices and anticipation around U.S. inflation data. While the broader market sentiment is cautious, Canadian investors are paying close attention to earnings announcements from major companies such as CAE Inc., Finning International Inc., and Suncor Energy Inc. The resource sector, integral to Canada’s economic landscape, shows slight retracement, reflecting ongoing price challenges in commodities like copper and lithium.

As a major player in the global energy market, Canada’s energy industry is gauging potential impacts of U.S. protectionist trade policies under the incoming administration. While Canadian crude exports may remain unaffected given the reliance of U.S. refineries on Canadian oil, the sector remains watchful of any shifts in trade tariffs. Today’s Canadian building permits data is expected to see a slight rebound after a sharp fall last month, which could offer insight into domestic economic resilience amid global volatility.

US Market Update

U.S. stock futures are almost flat as the market reacts to a recent rally following the election. The tech-heavy Nasdaq 100 and S&P 500 futures slipped modestly, reflecting investor caution over the best sectors for continued gains. Bitcoin, however, is on a record run, hovering close to $90,000, driven by expectations of a crypto-friendly environment under the newly elected administration. This focus on cryptocurrencies is drawing investor interest amid broader market uncertainty.

The U.S. market is also watching economic indicators closely, with the Federal Reserve expected to release further guidance on interest rates and inflation targets. On the corporate front, Visa Inc. has expanded its reach through a new partnership with Affirm Holding Inc., aligning with the growing trend in “buy now, pay later” services. Additionally, the tech sector saw updates from Apple Inc., which faces regulatory pressure from the EU over geo-blocking practices, while Home Depot Inc. reported a smaller-than-expected decline in same-store sales, buoyed by resilient demand from professional contractors.

UK Market Update

The UK market opens with subdued momentum, as investors respond to the latest U.S. election results. British unemployment rates and average weekly earnings data are among the key economic releases today, with analysts predicting slight improvements. Additionally, the UK’s response to the global semiconductor push continues to be a focal point, as domestic chipmakers and tech companies navigate challenges associated with regional production demands. Companies like Shell Plc and Nestle have also made headlines with significant operational updates.

In the energy sector, Shell Plc won an appeal against a 2021 ruling that required the company to accelerate its carbon reduction efforts. This appeal win is viewed as a significant development in the UK, as it may influence how other energy firms approach regulatory commitments toward emissions reductions. The ruling also highlights the complexities of balancing corporate environmental responsibilities with shareholder interests and global competitiveness.

Australian Market Update

Australia’s market remains steady, with the ASX reflecting cautious optimism as metal prices stabilize. The mining sector continues to play a pivotal role, especially with lithium and rare earth projects attracting global investor interest. Companies like Fortescue Metals and BHP Group are focused on expanding their portfolios, anticipating strong long-term demand driven by the global energy transition.

The Reserve Bank of Australia recently held its interest rate, which offers temporary relief to the market, though inflationary pressures and global economic uncertainties remain. The tech sector is also gaining traction as Australian firms explore new partnerships and digital service expansions, aligning with trends seen in U.S. markets. Additionally, investor interest in Australian gold mining companies remains robust amid geopolitical shifts that are impacting global energy and resource markets.

International Market Update

In international markets, sentiment is mixed as Asian and European indices navigate post-election shifts in the U.S. and fluctuating commodity prices. Asian markets, including the Nikkei and Hong Kong’s Hang Seng, experienced declines, especially in semiconductor-related stocks, reflecting concerns over regulatory changes. The European markets also opened lower, with German DAX and UK FTSE futures showing losses amid lower-than-expected corporate earnings and ongoing currency volatility against the U.S. dollar.

Emerging markets are especially focused on the crypto rally, as Bitcoin edges towards the $90,000 mark. Increased interest in cryptocurrency assets is drawing significant attention from regions with growing fintech sectors, eager to leverage a crypto-friendly environment expected under the new U.S. administration. Meanwhile, geopolitical developments around global climate policies are also under scrutiny, as countries consider how to meet international commitments amid evolving trade and investment flows.

Notable News Highlights

Affirm Holdings, Inc. (NASDAQ: AFRM) and Visa Inc. (NYSE: V) – November 12, 2024
Visa has partnered with Affirm to launch a card in the U.S. that supports both debit transactions and “buy now, pay later” options, meeting the increasing demand for flexible payment solutions. The card feature is also set to debut in the United Arab Emirates through a partnership with Liv Bank and is expected to expand into Europe. Visa’s study revealed that over half of its cardholders want access to multiple accounts on a single credential, underscoring the need for versatile payment options in today’s market.

Alibaba Group Holding Ltd. (NYSE: BABA | HKEX: 9988) – November 12, 2024
The e-commerce giant celebrated “robust growth” during the Singles’ Day sales period, concluding with a record-breaking number of shoppers. Although the company did not disclose total sales revenue, it noted that 45 brands, including Apple, Haier, Midea, and Xiaomi, exceeded 1 billion yuan in gross merchandising value (GMV). Larger-ticket items such as household appliances saw increased demand, supported by a national subsidy scheme promoting consumption through a 150 billion yuan trade-in initiative.

Appia Rare Earths & Uranium Corp. (CSE: API | OTCQB: APAAF) – November 12, 2024
Appia has completed a diamond drilling program at the Ionic Adsorption Clay project in Goias, Brazil, with successful intercepts of high-grade mineralization across three drillholes. The drilling reached depths of over 450 meters total, encountering carbonatitic breccia and significantly altered hardrock zones, confirming the continuity of the mineralization. Stephen Burega, President of Appia, highlighted the discovery of carbonatitic breccia containing high levels of Total Rare Earth Oxide, suggesting promising potential for both ionic adsorption and primary mineralization.

Apple Inc. (NASDAQ: AAPL) – November 11, 2024
The European Union has ordered Apple to cease geo-blocking practices across its services, including the App Store, Apple Arcade, and Apple Music. The European Commission highlighted several geo-blocking issues, giving Apple one month to propose solutions. The enforcement marks a significant step toward EU compliance for Apple’s digital services, impacting how the company manages content access across different regions.

Boeing Co. (NYSE: BA) – November 12, 2024
Avia Solutions Group has placed an order for 40 Boeing 737 MAX 8 jets, with an option for an additional 40, in a deal valued at approximately $2.17 billion. Deliveries are slated to begin in 2030, as Avia aims to expand its fleet from 220 to 600 aircraft by 2027. This order reflects Avia’s growth strategy, as it pursues fleet expansion across its 11 air operator certificates.

Ciscom Corp. (CSE: CISC | OTCQB: CISCF) – November 12, 2024
Ciscom has announced a non-brokered private placement financing to raise up to $800,000 by offering 10,000,000 units at $0.08 each. Key executives, including the CEO and Chair of the Board, have committed to purchasing over half of these units, demonstrating strong internal confidence in the company’s growth and focus on mergers and acquisitions. The financing, leveraging exemptions from certain shareholder approval requirements, will primarily support the company’s M&A activities.

Critical Metals PLC (LSE: CRTM | OTCQB: CRTMF) – November 11, 2024
Critical Metals, managing the Molulu Copper/Cobalt Project in the DRC, announced operational progress and financial updates. They have begun shipping copper ore to OM Metals for processing, with plans for further shipments following initial assays. Geotechnically, the company has resumed activities, identifying key zones for exploration and considering a solar power project to reduce costs and support operations. Financially, Critical Metals has rearranged its loan terms with an international lender, extending repayment deadlines while actively discussing refinancing options.

Grab Holdings Ltd. (NASDAQ: GRAB) – November 11, 2024
The Singapore-based tech firm raised its revenue forecast for fiscal 2024, driven by growth in its food delivery and ride-hailing segments amid the holiday season. Third-quarter revenue reached $716 million, surpassing Visible Alpha’s forecast of $700.8 million. Grab also adjusted its core profit outlook upward to $308-$313 million, noting an adjusted profit of 1 cent per share, surpassing estimates of break-even.

Home Depot, Inc. (NYSE: HD) – November 12, 2024
The top U.S. home improvement retailer raised its annual same-store sales forecast, attributing it to strong demand from professional contractors. Home Depot reported a smaller-than-expected 1.3% drop in Q3 comparable sales, outpacing analysts’ projection of a 3.25% decline. The company now anticipates a 2.5% decline in same-store sales for fiscal year 2024, compared to the previous forecast of a 3%-4% drop.

Libero Copper & Gold Corporation (TSXV: LBC | OTCQB: LBCMF | DE: 29H) – November 12, 2024
The company announced an update to its Mocoa Project in Colombia, following collaboration with Colombian authorities to correct cadastral boundaries. This update resolves previous overlaps with a forest reserve and provides clarity on environmental compliance, facilitating the project’s advancement under well-defined regulatory terms.

Nevada Lithium Resources Inc. (CSE: NVLH | OTCQB: NVLHF | FSE: 87K) – November 12, 2024
Released an updated mineral resource estimate for its Bonnie Claire Lithium Project, reporting a 68% increase in lithium carbonate equivalent tonnage. The report underscores Bonnie Claire’s positioning as a leading global lithium resource and sets the stage for an updated Preliminary Economic Assessment, anticipated by Q1 2025.

Panther Metals PLC (LSE: PALM) – November 11, 2024
Panther Metals PLC has provided an update on its Phase 1 Diamond Drilling Programme at the Dotted Lake Project in Ontario, Canada, which aims to explore for nickel, cobalt, copper, gold, and platinum group elements within an ultramafic intrusive complex. As of November 10, a total of 847 meters of diamond core drilling has been completed across several target areas, confirming the presence of a buried ultramafic system, with significant findings of nickel, chrome, copper, and signs of gold. The soil geochemical sampling program has been successfully extended, with samples sent for laboratory assay to further interpret the mineral potential.

Power Nickel Inc. (TSXV: PNPN | OTCQB: PNPNF) – November 11, 2024
Power Nickel announced impressive results from its summer 2024 drilling campaign at the polymetallic Lion Zone, with standout assays including 19.60 meters of 3.82% copper equivalent (CuEq) from hole 72, showcasing significant polymetallic deposits. The company’s CEO, Terry Lynch, highlighted the successful application of new techniques such as downhole EM, which have enhanced the exploration team’s insights and expanded the zone westward with greater precision. The results demonstrate robust lateral continuity and the potential for substantial zone expansion.

Sea Ltd. (NYSE: SE) – November 12, 2024
Surpassed third-quarter revenue estimates, driven by steady gains in its e-commerce, entertainment, and financial services. Sea’s Shopee platform recorded significant growth across Southeast Asia, with e-commerce revenue jumping by 42.6% to $3.2 billion, exceeding analyst expectations. This expansion reflects Sea’s ongoing diversification into high-demand digital services.

Shell Plc (LSE: SHEL) – November 12, 2024
Shell won an appeal in the Dutch courts, overturning a previous 2021 ruling that mandated a 45% reduction in carbon emissions by 2030. The recent ruling supports Shell’s argument against an absolute emissions cut from its products, as this could inadvertently lead customers to turn to more carbon-intensive energy sources. This decision marks a significant development in corporate climate governance.

Silver Bullet Mines Corp. (TSXV: SBMI | OTCQB: SBMCF) – November 12, 2024
Silver Bullet Mines (SBMI) announced confirmatory multi-element assay results from independent lab testing of silver concentrate from the Super Champ property, which SBMI leases perpetually. The new assay results showed an increase in silver content with a head grade of 28.0 ounces per ton and a concentrate grade of 339.6 ounces per ton, with an 88.2% recovery rate. Additionally, the concentrates also contained significant gold values, enhancing their overall value. Based on these positive results, SBMI is now engaging in negotiations for the sale of the concentrate and continues to process material from the Super Champ at its Globe, Arizona mill, making operational adjustments to improve efficiency.

Stakeholder Gold Corp. (TSXV: SRC) – November 12, 2024
Stakeholder Gold has reported promising results from their 2024 exploration program at the Ballarat Gold Project in the Yukon Territory, focusing on gold and copper anomalies. The Skye Gold Zone and Loki Copper Zone were particularly highlighted, with the former showing significant gold trends influenced by structural controls, and the latter indicating a substantial anomalous copper zone potentially similar to the Minto Cu-Ag-Au mine. A comprehensive drone magnetic survey has helped identify previously unknown structures, suggesting strong gold mineralization controls, and revealing new targets across the property. Stakeholder Gold Corp. plans to commence drilling in these zones in early 2025, underscoring the discovery potential of these mineralized areas close to major development projects in the White Gold District.

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Publisher’s Note: Tracy Hughes uses a variety of sources for her daily market update series called Investor.Coffee. This series is intended to be a brief summary of daily market highlights that the Investor.News team finds interesting. This summary is meant to inspire research, investigation, and due diligence, and we encourage you to always seek licensed professional advice with any investment decision. While Tracy is a professional writer, she is not a licensed investment advisor. And yes, Tracy uses ChatGPT and other technology devices to help distill information and prioritize business data — while sipping her daily coffee! For more information email us [email protected].