Canadian stocks moved slightly higher during trading on Tuesday.

Image Source : Krish Capital Pty Ltd

Index Update:

The S&P/TSX Composite Index edged 0.08% to 24,974.72 on Tuesday, as strong gains in the energy and materials sectors were offset by renewed trade-war jitters and defensive positioning ahead of key central-bank meetings. Meanwhile, diplomatic strains added to market unease, following a pointed exchange between Trump and Prime Minister Mark Carney, when Carney declared “Canada is not for sale.”

Macro Update:

Canada’s economic momentum softened in early 2025, as the Ivey PMI slipped into contraction territory at 47.9 in April, signaling a contraction in economic activity for the first time since January. The employment index also declined to 48 from 48.2, pointing to a reduction in workforce levels.

Meanwhile, exports edged down 0.2% in March, hitting their lowest level since November, largely due to new U.S. tariffs. Exports to the US fell by 6.6%, but this was nearly offset by a 24.8% rebound in shipments to non-US markets.

Canada’s trade deficit narrowed to CAD 0.51 bn as imports fell more sharply, partly due to reciprocal tariffs and consumer boycotts of American goods.

Top Movers and Losers:

The biggest gainers of the session on the S&P/TSX Composite were Centerra Gold Inc (TSX: CG), which rose 15.68%. Ero Copper Corp (TSX: ERO) added 11.01% and Orla Mining Ltd (TSX: OLA) was up 9.58%. Biggest losers included Shopify Inc (TSX: SHOP), which fell 4.87%. Bausch Health Companies Inc (TSX: BHC) declined 3.96% and CES Energy Solutions Corp (TSX: CEU) down 3.38%.

Our Stance:

The index maintains a positive setup, trading comfortably above its 21-period Simple Moving Average (SMA), indicating a sustained bullish trend. The Relative Strength Index (RSI) stands at 57.69, a neutral yet constructive level that suggests further upside potential if buying momentum continues.

Commodity Update:

The dollar held steady ahead of the Federal Reserve's policy meeting, with Chair Jerome Powell expected to call for more data before any decision. Asian investors continued pulling out U.S. assets, while upcoming U.S.-China trade talks calmed market fears. Gold slipped 0.68% to $3,399.60, silver fell 0.35%, and copper dropped 0.73%. Brent crude rose 0.60% to $60.52 on signs of weaker U.S. output and stronger global demand.

Technical Update:

On Tuesday, the S&P/TSX Composite Index advanced by 21.20 points to close at 24,974.72, marking a modest 0.08% gain. While the increase was slight, it reflects steady investor confidence and healthy market participation. A key driver of the day’s performance was the basic materials sector, which surged 3.24%. From a technical perspective, the index maintains a positive setup, trading comfortably above its 21-period Simple Moving Average (SMA), indicating a sustained bullish trend. The Relative Strength Index (RSI) stands at 57.69 a neutral yet constructive level that suggests further upside potential if buying momentum continues. The index is currently testing a critical support zone of around 24,600. Holding above this level is essential for preserving the bullish outlook. Should the index dip below this threshold, potential support lies at 24,300 and 24,000, which could act as buffers against deeper pullbacks. Market action around these levels will be crucial in determining the near-term direction.