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Index Update: The benchmark S&P/TSX Composite Index ended with a loss of 69.90 points or 0.28% at 24,929.89. The index, which climbed to 25,197.00 in early trades, dropped to a low of 24,863.85 in the final hour.
Macro Update: Data from Statistics Canada showed the nation's trade deficit stood at C$ 0.32 billion in November, narrowing from an upwardly revised C$ 0.54 billion gap in the previous month.
Top Movers: Precision Drilling Corporation (PD.TO) climbed 4.7%. Imperial Oil (IMO.TO), Suncor Energy (SU.TO), Cogeco Communications (CCA.TO), Quebecor Inc (QBR.TO), Franco-Nevada Corporation (FNV.TO) and Agnico Eagle Mines (AEM.TO) lost 2 to 4.5%.
Our Stance: 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 24,500. If the index holds above this level, there could be a chance for a rebound. However, should the index break below 24,500, it could prompt a deeper correction, with the next support zone found at 24,200.
Commodity Update: The U.S. dollar strengthened on Wednesday, while the Japanese yen weakened near levels that prompted intervention last year, following strong U.S. economic data that pushed yields higher and reduced expectations for Federal Reserve rate cuts. In commodity markets, gold slipped 0.10% to $2,662.90, while silver rose 0.08% to $30.71. Copper saw a slight gain of 0.25%, reaching $9,008.50. Brent crude oil increased 0.42%, closing at $77.37 per barrel, driven by tighter supplies from Russia and OPEC, and a surprise rise in U.S. job openings, signaling economic growth and higher oil demand. Markets await upcoming payroll data for clarity on rate decisions.
Technical Update: On Tuesday, the S&P/TSX Composite Index closed at 24,929.89, marking a slight decline of 0.28%. This drop was mainly driven by the technology sector, which saw a significant retreat of 3.13%, adding to the overall negative sentiment across the market. The index is currently trading below its 21-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 48.07, 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 24,500. If the index holds above this level, there could be a chance for a rebound. However, should the index break below 24,500, it could prompt a deeper correction, with the next support zone found at 24,200.