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Index Update: The benchmark S&P/TSX Composite Index climbed 83.16 points or 0.3 percent to a new record closing high of 25,488.30.
Macro Update: While the Federal Reserve's preferred inflation readings showed an acceleration by the annual rate of consumer price growth, the data has still increased optimism the central bank will cut interest rates again next month.
Top Movers: Investment management giant Brookfield led the advance with a 1.9% increase, while railway operators Canadian National and Canadian Pacific rebounded with respective gains of 1.2% and 1%. Additional contributors included Loblaw Companies, Canadian Natural, and Great West Lifeco, which added between 0.7% and 1.5%.
Our Stance: Looking ahead, the index is positioned above a key rising trendline around the 24,900 mark. Staying above this trend line is critical for maintaining the current upward momentum. Should the index fall below this level, it could test lower support levels, potentially revisiting the 24,500 area.
Commodity Update: Asian stocks were subdued on Thursday, while the U.S. dollar remained weak after U.S. data revealed that progress in slowing inflation had stalled, despite a resilient economy. This raised uncertainty about the Federal Reserve's next steps for the upcoming year. With the U.S. Thanksgiving holiday expected to keep trading volumes light, traders stayed cautious. In commodities, gold dropped by 0.50% to $2,651.40 per ounce, silver fell 1.12% to $30.21 per ounce, and copper declined by 0.06% to $9,017.50 per ton. Brent crude dipped by 0.10% to $72.79 per barrel, as a surprise rise in U.S. gasoline stocks dampened demand outlook.
Technical Update: The S&P/TSX Composite Index had a strong performance on Wednesday, gaining 83.16 points to close at 25,488.30, marking a 0.33% increase. Notably, the healthcare sector led the way with a notable 0.99% increase, highlighting its continued strength amid broader market trends. From a technical standpoint, the index remains above its 21-period Simple Moving Average (SMA), a signal that bullish sentiment is prevailing. This SMA level is now viewed as a potential support area, reinforcing the positive outlook. Additionally, the Relative Strength Index (RSI), currently at 71.09, suggests that the market has room to advance before approaching overbought territory, further supporting the bullish case. Looking ahead, the index is positioned above a key rising trendline around the 24,900 mark. Staying above this trend line is critical for maintaining the current upward momentum. Should the index fall below this level, it could test lower support levels, potentially revisiting the 24,500 area.