Canadian stocks moved higher during trading on Friday

Index Update: The S&P/TSX Composite Index rose 0.33% to close at 26,429.13 on Friday, moving closer to its all-time high as easing trade tensions and fresh labor market data supported investor sentiment. The boost followed a “very positive” phone call between Presidents Xi Jinping and Donald Trump, which helped calm fears around U.S. steel and aluminum tariffs potentially disrupting Canadian exports. These concerns were further alleviated by Ottawa’s confirmation of “intensive and live” negotiations with Washington aimed at securing exemptions for Canada’s metals sector.

Macro Update: US-China Trade Talks Resume in London: Senior officials from the US and China are meeting in London today, signaling a fresh push to ease trade tensions. Rare earth exports, tariff rollback, and issues like Huawei and student visas are expected to be focal points, with a looming July deadline for the tariff pause.

Dollar Dips as Focus Shifts to Trade and Inflation Data: The US dollar index eased to around 99, reversing part of last week’s gains. Investors are cautious ahead of critical economic reports this week and optimistic about resumed US-China trade discussions following positive comments from Trump and Xi.

US Stock Futures Flat Ahead of Key Events: Equity futures were steady on Monday as markets await inflation readings and updates from the US-China trade front. CPI and PPI data, along with the University of Michigan’s sentiment index, will guide inflation expectations, while Apple’s WWDC adds focus on the tech sector.

Image Source : Krish Capital Pty Ltd

Top Movers and Losers: The biggest gainers of the session on the S&P/TSX Composite were Algoma Steel Group Inc (TSX: ASTL), which rose 10.76%. Shopify Inc (TSX: SHOP) added 6.31% and Seabridge Gold Inc. (TSX: SEA) was up 5.18%. Biggest losers included Orla Mining Ltd (TSX: OLA), which fell 10.23%. Enghouse Systems Ltd (TSX: ENGH) declined 9.24% and G Mining Ventures Corp (TSX: GMIN) down 7.35%.

Our Stance: The index remains bullish, trading above its 21-period Simple Moving Average, which suggests the prevailing uptrend is intact. The Relative Strength Index (RSI) is at 70.42, reflecting strong momentum but not yet in overbought territory, allowing room for further gains. The index is currently testing a key support level of around 26,100.

Commodity Update: The dollar held firm on Monday as optimism from a strong U.S. jobs report gave way to caution ahead of key U.S.-China trade talks in London. With China battling deflation and U.S. sentiment under pressure, investors reassessed the dollar’s safe-haven appeal. Gold dipped 0.66% to $3,325.55, silver rose 0.14% and copper gained 0.25%. Brent crude eased 0.10% to $66.43 ahead of China’s upcoming economic data.

Technical Update: The S&P/TSX Composite Index posted a 0.33% gain on Friday, rising 86.84 points to close at 26,429.13, supported by solid trading volumes and continued investor optimism. Technically, the index remains bullish, trading above its 21-period Simple Moving Average, which suggests the prevailing uptrend is intact. The Relative Strength Index (RSI) is at 70.42, reflecting strong momentum but not yet in overbought territory, allowing room for further gains. The index is currently testing a key support level of around 26,100. A decisive hold above this level would reinforce bullish sentiment, while a breakdown may trigger a pullback toward 25,700–25,500 support.