Daily Pulse
One of our most accessible tools, this daily comment keeps you abreast of developments on the North American and international financial markets.
Michel Doucet
Vice-President and
Portfolio Manager
April 23, 2025
Canada
Barrick Gold Corp. is looking to sell its last mine in Canada, Hemlo gold mine in Ontario, to capitalize on record gold prices and renewed interest in North American mining operations. The sale would leave Barrick without any mines in Canada, where it was founded, and is part of its strategy to shed mines and smaller investments as bullion prices hit record highs. Hemlo produced 143,000 ounces last year, about 3.5% of Barrick's overall gold output for the year.
Gold retreated after topping $3,500 an ounce for the first time, with traders booking profit following a nearly 10% rally this month. The precious metal is in the overbought territory, signaling the recent price ascent may be overdone, with its 14-day relative-strength index topping 78. Gold has surged about 29% this year, outperforming nearly every other major asset class, as investors flee equities exposed to an expanding trade war.
United States
US Treasury Secretary Scott Bessent said that the tariff standoff with China cannot be sustained and that the two countries will have to find ways to de-escalate in the very near future. Bessent expressed optimism that tensions could cool in the coming months, which would bring relief to markets, but cautioned that a larger deal could take longer, potentially in two to three years.
Elon Musk will devote more time to Tesla starting next month, scaling back his work with the US government, which has been a concern for investors. Tesla's stock jumped 7% despite missing analysts’ estimates for both revenue and earnings, and management backing away from earlier predictions that vehicle sales will return to growth this year. Musk acknowledged differences with President Trump on tariffs, which have hurt Tesla's business, and said the company is working to localize its supply chains to minimize risks of higher costs.
Europe
Emmanuel Macron is considering dissolving parliament and holding snap elections as early as this fall, following a boost in his popularity due to his return to international prominence. Macron has consulted with his inner circle about the possibility, but no decision has been made, and the next legislative elections are not due until 2029. One option being considered is waiting until next year to dissolve parliament and hold legislative elections at the same time as a planned municipal vote in 2026.
SAP SE gained the most in six years after Europe’s most valuable company reported first-quarter profit that topped analysts’ estimates, fueled by its pivot to cloud services. Adjusted operating income rose 58%. About 86% of SAP’s sales were from recurring revenue last quarter, helping insulate SAP from economic turbulence and fears of a US recession. SAP shares rose as much as 11% in Frankfurt on Wednesday, the biggest intraday jump since April 24, 2019. The stock has risen 36% over the last year and its value eclipsed Novo Nordisk A/S and LVMH in March.
Asia
President Donald Trump said that the US was “doing fine” with Beijing and that he did not anticipate a “hardball” negotiation and predicted that the final tariff on China would not be “anywhere near” the 145% level he has set. Foreign Ministry spokesman Guo Jiakun said “the door for talks is wide open,” at a regular press briefing in Beijing on Wednesday, reiterating that trade wars don’t have any winners. While Trump has repeatedly sought to get Xi on the phone, China wants the two sides to work out the contours of an agreement before the leaders speak.