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Image Souce: Krish Capital Pty Ltd
Index Update: The benchmark S&P/TSX Composite Index climbed to 25,694.45 before settling at 25,648.00, with a gain of 104.48 points or 0.41%.
Macro Update: Data from Statistics Canada showed the Canadian GDP expanded by 0.3% from the earlier quarter in the three months to September of 2024, slowing from 0.5% expansions in the first two quarters of the year.
Top Movers: Atco Ltd. (ACO.Y.TO) shares rallied 6.7% and Telesat Corporation (TSAT.TO) climbed 6%. Cogeco Communications (CCA.TO) closed up 4.7%, while Quebecor (QBR.A.TO) and Hut 8 Corp (HUT.TO) gained 3.8% and 3.3%, respectively.
Our Stance: Currently, the index is testing a critical support level of around 24,850. Maintaining this level is essential for sustaining upward momentum; a drop below could lead to a pullback, with important support thresholds identified at 25,000 and 24,600. For the index to continue its upward trajectory, it’s crucial to stay above these key levels, as they will serve as indicators for future performance.
Commodity Update: Currencies of BRICS nations weakened on Monday, while the U.S. dollar strengthened after President-elect Donald Trump threatened 100% tariffs on the bloc if it moves away from the greenback. This follows Trump's call for BRICS members to refrain from creating or supporting an alternative currency. The dollar's rise is also linked to market expectations of U.S. interest rate cuts. In commodities, gold fell 1.19% to $2,649.80, silver dropped 1.46% to $30.65, and copper declined 0.44% to $8,981.50. Meanwhile, Brent crude edged up 0.10% to $71.92 per barrel, supported by strong Chinese factory activity and ongoing Middle East tensions despite a ceasefire agreement.
Technical Update: On Friday, the S&P/TSX Composite Index climbed 104.48 points, closing at 25,648.00, which marks a 0.41% increase fueled by strong investor confidence and active trading. The technology sector significantly contributed to this rise, achieving a 1.03% gain. From a technical standpoint, the index is well above its 21-period Simple Moving Average (SMA), signaling a bullish trend that suggests further potential upside. The Relative Strength Index (RSI) is at 77.26, indicating a robust market environment, yet still leaving room for additional growth. Currently, the index is testing a critical support level of around 24,850. Maintaining this level is essential for sustaining upward momentum; a drop below could lead to a pullback, with important support thresholds identified at 25,000 and 24,600. For the index to continue its upward trajectory, it’s crucial to stay above these key levels, as they will serve as indicators for future performance. Investors will be watching closely to see if the market can hold this support in the coming days.