The cumulative value of those outstanding shares determines the overall value or market capitalization of a company. Of course, those numbers change daily as share prices rise and fall with normal market fluctuations.

WHY IT MATTERS: While Fortune 500-level companies are typically somewhat better insulated against market shocks, reduced market cap can make it more difficult for publicly traded firms to obtain favourable credit or raise capital through share offerings.

Those fluctuations are the result of profits each company reports and the outlook on their future fortunes along with the condition of the overall economy.

In recent days, however, there is another consideration to factor into those market trends: the war in Iran. That gambit, initiated by the Trump administration and Israel’s leadership, has roiled markets around the world.

The U.S. Dow Jones had been riding pretty high despite a global economy upended by U.S. tariff policy.

The Dow had reached a yearly high average on Feb. 10 of more than 50,000. However, the Middle East war cratered it, causing the average to drop to slightly more than 46,000 by March 25. Almost every other market around the world saw significant declines as well.

At the same time, oil prices have reached higher than US$100 per barrel as global supply is choked down by roughly 20 per cent due to the closure of the Strait of Hormuz, impacting urea fertilizer prices as well.

All of this has affected the input costs farmers will face this year, but it has also had a negative impact on the market value of farm machinery manufacturers.

As their profitability and share prices were starting to rise from a low point in the cyclical equipment demand cycle, the stock market declines have caused significant reductions in the valuation of those companies.

Here’s a look at just how much the market capitalization of those brands had fallen from mid-February to late March:

• John Deere shares peaked just before the war on Feb. 24 at US$664. By March 25, those share values had dropped $82. With about 270.1 million shares outstanding, that represents a market capitalization loss of roughly $22 billion.
• Agco shares peaked Feb. 13, and by March 25 had seen a $1.7 billion valuation reduction.
• CNH Industrial, parent company of Case IH and New Holland, realized a $2.5 billion decline.
• In the automotive sector, the story is the same. For example, Ford saw its market value decline by more than $8 billion.

The situation is the same for nearly all publicly traded companies listed on many different stock exchanges around the world, meaning globally, companies collectively have probably lost trillions of dollars in market value, at least temporarily.

At the same time, financial analysts are sounding the alarm over the possibility of insider trading on the U.S. stock market related to government announcements, with unusual trading patterns observed that could have netted millions for unidentified entities just minutes before a White House announcement.

More than a few analysts are now questioning the integrity of the U.S. stock market as a result. Since the current administration took office, the ability of the U.S. Securities and Exchange Commission to prosecute violations has reportedly been significantly reduced.

This comes at a time when foreign investment in U.S. government treasury bonds is declining, reportedly due to a lack of confidence in the administration. Those bonds help finance the government’s deficit. Without continued investment, the U.S. treasury will find itself in a bind.

Add to that the recent increase in global oil trades conducted in yuan, rather than the standard U.S. dollar transaction, which came to be known as the petro-dollar.

The so-called petro-dollar has helped prop up demand for U.S. currency for decades. That has been an economic boon for the United States, but the continued decline in U.S.-dollar oil transactions would lead to significantly reduced demand for greenbacks.

As a lack of confidence in the U.S. among investors, trading partners and allies grows, there could be a very rocky road ahead for the U.S. economy, and the valuations of U.S.-based corporations could continue to take a beating.

The post War hits farm equipment makers’ share prices appeared first on Grainews.

“We’re going to do something on Greenland, whether they like it or not.”

He added that if he can’t make a deal to buy it, then the U.S. would do it “the hard way.”

By Jan. 15, several European nations had begun sending troops to Greenland to engage in defensive “exercises.”

On Jan. 16, Trump added that he would consider imposing tariffs on any country that did not support the unilateral U.S. acquisition of Greenland.

Add to that the killing of more than 100 civilians in boats in the Caribbean. These people were accused, without publicly providing evidence, of drug trafficking. Then there’s the temporary incursion into Venezuela to grab then-President Nicolas Maduro.

The U.S. president has shown a willingness to ignore legal boundaries both inside and outside his country to achieve his goals. That has led to very strained relationships with virtually every other western democracy, many of which are now looking to reduce their economic reliance on the U.S.

In November of last year, the U.S. administration spelled out its intention to dominate the countries in Western Hemisphere with the publication of its National Security Strategy.

“The United States rejects the ill-fated concept of global domination for itself,” the document reads. “The United States must be pre-eminent in the Western Hemisphere as a condition of our security and prosperity.”

Scott Lucas, professor of international politics , speaking on Times Radio in England in early January, said: “What you’ve got is beyond Trump’s renaming of the Monroe Doctrine, is the 20th century version of 19th century U.S. colonialism … but it’s on steroids now.

“The Trump corollary is, ‘we control the Western Hemisphere, militarily, economically and politically.’ That’s the wider play.”

In the face of that, Prime Minister Mark Carney announced a new agreement with China on Jan. 16. It’s part of a move to restore overall relations with that country, in part to limit economic risk from U.S. actions.

But China, too, has been an aggressive and dangerous threat to our national sovereignty and security.

“We spent a fair bit of time in those meetings about the guardrails, if you will, of that relationship, where we felt we could co-operate, respecting each other’s view in the system,” Carney said during a press conference announcing the deal.

“The candid dialogue leads to a more predictable and effective relationship (than with the U.S.).”

But there are risks.

In March 2024, a parliamentary committee released a report on so-called Chinese foreign police stations, which claimed that China had established 54 overseas police stations in 30 different countries, including Canada.

A follow-on report entitled Patrol and Persuade, published in December 2022, claimed that 102 OPS were present in 53 countries.”

The RCMP and the FBI both have publicly announced investigations into these activities in Canada and the U.S.

These clandestine stations have reportedly been used to intimidate and extend the reach of the PRC government to expatriate Chinese citizens living abroad.

In 2024, the CBC reported on a CSIS investigation revealing that Chinese-sponsored actors had infiltrated 20 cyber networks related to the Canadian government and obtained classified information as a result.

A report from the Communications Security Establishment Canada, looking ahead to the 2025-26 fiscal year, names China as “the most comprehensive cyber security threat facing Canada today.”

In 2023 the Globe and Mail broke the story that Conservative MP Michael Chong was targeted for harassment by the Chinese government after a vote in the House condemning China over its treatment of the Uyghur minority. This was part of a larger attempt to interfere in Canadian politics.

Parliament’s National Security and Intelligence Committee released a report as far back as 2020 that stated, “the threat from espionage and foreign interference is significant and continues to grow. Several states are responsible for conducting such activities in Canada, but intelligence shows that China and Russia remain the primary culprits.“

When it comes to looking for major trading partners in 2026, there are no easy choices.

The post Opinion: Is a closer trade relationship with China a security risk? appeared first on Grainews.