RY 157.905 -2.654% SHOP 106.93 -7.7235% TD 81.31 -1.6094% ENB 61.56 -3.6167% BN 66.26 -6.584% TRI 238.37 -3.7977% CNQ 38.78 -7.7765% CP 100.22 1.0079% CNR 137.95 -0.3035% BMO 126.54 -6.4814% BNS 66.57 -2.3614% CSU 4323.9849 -4.3277% CM 80.21 -3.408% MFC 39.3 -8.9856% ATD 70.67 -3.2183% NGT 62.76 -7.8279% TRP 65.19 -5.0539% SU 47.03 -9.261% WCN 270.4 -3.9534% L 204.81 -2.2667%
RY 157.905 -2.654% SHOP 106.93 -7.7235% TD 81.31 -1.6094% ENB 61.56 -3.6167% BN 66.26 -6.584% TRI 238.37 -3.7977% CNQ 38.78 -7.7765% CP 100.22 1.0079% CNR 137.95 -0.3035% BMO 126.54 -6.4814% BNS 66.57 -2.3614% CSU 4323.9849 -4.3277% CM 80.21 -3.408% MFC 39.3 -8.9856% ATD 70.67 -3.2183% NGT 62.76 -7.8279% TRP 65.19 -5.0539% SU 47.03 -9.261% WCN 270.4 -3.9534% L 204.81 -2.2667%

The Canadian market closed notably lower on Friday

By: Team Kalkine | Jan 13, 2025 | Read Time : 10 Mins
The Canadian market closed notably lower on Friday

Image Source : Krish Capital Pty Ltd

Index Update: The benchmark S&P/TSX Composite Index, which tumbled to 24,693.75 in early trades, closed down 305.63 points or 1.22% at 24,767.73. The index shed about 1.1% in the week.

Macro Update: Canadian employment data came in stronger than expected, reducing prospects of any significant monetary easing by the Bank of Canada.

Data from Statistics Canada showed employment in Canada advanced by 91,000 in December 2024, the largest gain since January 2023, following a 51,000 rise in the previous month.

Meanwhile, the unemployment rate in Canada dropped to 6.7% in December, from 6.8% a month earlier.

Top Movers: Maple Leaf Foods (MFI.TO), Aura Minerals (ORA.TO), Canadian Tire Corporation (CTC.TO), Gildan Activewear (GIL.TO), Lundin Gold (LUG.TO), Suncor Energy (SU.TO), Hut 8 Corp (HUT.TO) and Imperial Oil (IMO.TO) also posted impressive gains.

Our Stance: Key levels are critical in determining the next potential move. The immediate support for the index is seen at 24,300. If the index holds above this level, there could be a chance for a rebound. However, should the index break below 24,300, it could prompt a deeper correction, with the next support zone found at 24,000.

Commodity Update: The U.S. dollar surged at the start of the week, bolstered by a strong jobs report highlighting the nation's economic resilience. U.S. job growth accelerated in December, with the unemployment rate dropping to 4.1%, prompting traders to scale back expectations for Federal Reserve rate cuts in 2025. The dollar's strength left its peers languishing near multi-year lows. In commodities, gold inched up 0.01% to $2,715.70, while silver dropped 0.24% to $31.23. Copper gained 0.50%, reaching $9,126.50. Meanwhile, Brent crude oil climbed 1.81%, settling at $81.22 per barrel, driven by concerns over supply disruptions following the U.S.'s stringent sanctions on Russian oil exports.

A graph of stock market

Description automatically generated

Technical Update: On Friday, the S&P/TSX Composite Index closed at 24,767.73, marking a decline of 1.22%. This drop was mainly driven by the healthcare sector, which saw a significant retreat of 4.38%, adding to the overall negative sentiment across the market. The index is currently trading below its 50-period Simple Moving Average (SMA), which suggests that the short-term downtrend remains intact. Despite the broader decline, the Relative Strength Index (RSI) has risen to 43.61, approaching a relatively high level. While this indicates that the market could be entering overbought territory, it also implies that the downward momentum may lose steam, and a shift in market dynamics might be in the works. Traders are closely monitoring technical indicators to gauge the market's direction in the short term. Key levels are critical in determining the next potential move. The immediate support for the index is seen at 24,300. If the index holds above this level, there could be a chance for a rebound. However, should the index break below 24,300, it could prompt a deeper correction, with the next support zone found at 24,000.


Disclaimer- This article has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate authorised to provide general financial product advice. Kalkine.com.au and associated pages are published by Kalkine. Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate to your objectives, financial situation and needs before acting upon it. There may be a Product Disclosure Statement, Information Statement or other offer document for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the relevant Product Disclosure Statement, Information Statement or offer document and consider the statement or document before making any decision about whether to acquire the security or product. Please note past performance is neither an indicator nor a guarantee of future performance. You should also seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice/information in this article or on the Kalkine website. Not all investments are appropriate for all people. The information in this article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of information contained in its articles, newsletters and websites. All information represents our views at the date of publication and may change without notice. Kalkine does not guarantee the performance of, or returns on, any investment. To the extent permitted by law, Kalkine excludes all liability for any loss or damage arising from the use of this article, the Kalkine website and any information published on the Kalkine website (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine hereby limits its liability, to the extent permitted by law. Please also read our Terms & Conditions and Financial Services Guide for further information. On the date of publishing this article (referred to on the Kalkine website), employees and/or associates of Kalkine and its related entities do not hold interests in any of the securities or other financial products covered on the Kalkine website unless those persons comply with certain safeguards, procedures, and disclosures. Some of the images/music that may be used in the article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the article unless stated otherwise. The images/music that may be used in the article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary. Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.