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 lower on Friday as energy and materials stocks fell on weak commodity prices as the U.S. dollar climbed higher. The benchmark S&P/TSX Composite Index closed down 86.53 points or 0.35% at 24,759.40. The index, which touched a low of 24,679.72 and a high of 24,804.26 in the session, posted a gain of 2.1% in the week.
Macro Update: Data from Statistics Canada showed employment in Canada rose by 14,500 in October, following a 46,700 increase in the previous month. The unemployment rate in Canada was at 6.5% in October, remaining unchanged from the previous month.
Top Movers: Molson Coors Canada Inc (TPX.B.TO) rallied about 4%. RB Global (RBA.TO) climbed 3.2%. Shopify Inc (SHOP.TO), Descartes Systems Group (DSG.TO), Morguard Corporation (MRC.TO) and Waste Connections (WCN.TO) climbed 1.5 to 2.3%.
Our Stance: Traders should keep an eye on the immediate support level at 23,920. If the index holds above this level, it could pave the way for a potential rebound. A break below 23,920, however, would raise the likelihood of further downside, with support levels to monitor at 23,400 and 23,000. These levels will be crucial in determining whether the current correction is merely a short-term pullback or the start of a deeper downturn.
Commodity Update: The dollar traded cautiously on Monday as markets prepared for U.S. inflation data and a series of Federal Reserve speeches. The yuan was under pressure after China’s latest stimulus package failed to impress. Weekend data showed China’s consumer price growth slowed to a four-month low in October, while producer prices deepened deflation. In commodities, gold fell 0.64% to $2,675.80/oz, silver dropped 0.46% to $31.30, and copper gained 0.22% to $9,661.50/ton. Crude oil declined 0.2% to $73.72 a barrel, with China's fiscal measures falling short and a Gulf of Mexico hurricane having minimal impact on U.S. production.
Technical Update: The recent performance of the S&P/TSX Composite Index, with its 0.35% decline to close at 24,759.40, reflects the ongoing market volatility. The energy sector's sharp drop of 1.08% stands out as a key contributor to this movement, which could weigh on investor sentiment in the near term. However, the fact that the index is still above its 50-period Simple Moving Average (SMA) is a positive sign, suggesting that the short-term uptrend remains intact. Traders should keep an eye on the immediate support level at 23,920. If the index holds above this level, it could pave the way for a potential rebound. A break below 23,920, however, would raise the likelihood of further downside, with support levels to monitor at 23,400 and 23,000. These levels will be crucial in determining whether the current correction is merely a short-term pullback or the start of a deeper downturn.