RY 163.82 -0.2739% SHOP 116.91 -18.9139% TD 83.13 -3.1345% ENB 64.13 -0.8197% BN 73.06 -6.1649% TRI 249.26 -0.8552% CNQ 42.675 -5.2929% CP 100.79 -2.9372% CNR 140.45 -2.1459% BMO 136.74 -2.1608% BNS 68.2 0.1468% CSU 4587.0698 -3.2264% CM 84.1 1.4108% MFC 43.98 -5.1133% ATD 73.43 0.6442% NGT 68.53 -1.8335% TRP 69.25 -0.9582% SU 52.52 -6.3481% WCN 281.58 0.0107% L 211.6 3.4415%
Image Souce: Krish Capital Pty Ltd
Index Update: The Canadian market ended down on Tuesday as trade war fears resurfaced after U.S. President-elect Donald Trump threatened that he will impose 25% tariffs on imports from Canada, Mexico and China. The benchmark S&P/TSX Composite Index, which fell to 25,288.46 in early trades, closed down 5.21 points or 0.02% at 25,405.14
Macro Update: Data from Statistics Canada showed wholesale sales in Canada increased by 0.5% month-over-month in October 2024, following a 0.8% gain in September, according to preliminary estimates.
Top Movers: Quebecor Inc (QBR.A.TO), Brookfield Asset Management (BAM.TO), Agnico Eagle Mines (AEM.TO), Wheaton Precious Metals (WPM.TO), Russel Metals (RUS.TO), Franco-Nevada Corporation (FNV.TO), Celestica Inc (CLS.TO) and Metro (MRU.TO) lost 2 to 4.5%.
Our Stance: From a technical perspective, the immediate support level is seen at 24,900. If the index holds above this level, it could set the stage for a rebound. On the other hand, a break below this support could lead to a deeper correction, with key support zones at 24,500 and 24,200.
Commodity Update: The U.S. dollar remained stable against major currencies on Wednesday as investors digested President-elect Donald Trump’s tariff proposals while awaiting key U.S. inflation data. In the commodities market, gold saw a 0.69% increase, reaching $2,664.70 per ounce, and silver rose by 0.50%, trading at $30.98 per ounce. Copper surged by 0.44%, hitting $9,014.50 per ton. Meanwhile, Brent crude dropped slightly by 0.01%, settling at $72.79 per barrel as markets weighed the impact of a potential ceasefire between Israel and Hezbollah, with attention also focused on Sunday’s OPEC+ meeting and upcoming U.S. GDP data for further guidance.
Technical Update: On Tuesday, the S&P/TSX Composite Index closed at 25,405.14, marking a slight decline of 0.02%. The drop was primarily driven by a significant 2.24% decline in the energy sector, which dragged down broader market sentiment. Despite this pullback, the index remains above its 21-period Simple Moving Average (SMA), suggesting that the short-term uptrend is still intact. However, the Relative Strength Index (RSI) now stands at a relatively elevated 69.90, which may indicate that the market is in overbought territory. This could signal that momentum may soften, and traders should be vigilant for potential shifts in market dynamics. From a technical perspective, the immediate support level is seen at 24,900. If the index holds above this level, it could set the stage for a rebound. On the other hand, a break below this support could lead to a deeper correction, with key support zones at 24,500 and 24,200.