RY 153.65 -4.2023% SHOP 115.56 -10.4811% TD 78.41 -3.4241% ENB 57.82 -1.8669% BN 64.12 -9.9059% TRI 231.41 -3.535% CNQ 36.1 -8.0489% CP 99.39 -3.7385% CNR 132.09 -4.8% BMO 123.22 -4.8494% BNS 63.155 -3.7418% CSU 4405.0801 -5.5666% CM 78.22 -3.0611% MFC 37.54 -8.6618% ATD 69.0 -0.5047% NGT 70.65 2.7188% TRP 62.665 -3.7995% SU 44.74 -7.4089% WCN 264.34 -2.8983% L 198.59 1.0122%
Image Souce: Krish Capital Pty Ltd
Index Update: the Canadian market retreated Tuesday morning and spent the rest of the day's session in negative territory as investors digested quarterly earnings updates from Canadian and U.S. companies and awaited some crucial economic data for directional cues. The benchmark S&P/TSX Composite Index ended down 3.11 points or 0.01% at 24,562.55. The index touched a low of 24,461.86 and a high of 24,591.36 intraday.
Macro Update: On the economic front, data from Statistics Canada showed wholesale sales in Canada rose by 0.9% month-over-month in September, following a 0.6% decline in August, according to preliminary estimates.
Top Movers: GFL Environmental (GFL.TO) gained about 3.2%. Agnico Eagle Mines (AEM.TO), Wheaton Precious Metals (WPM.TO), Waste Connections (WCN.TO), Descartes Systems Group (DSG.TO) and Onex Corporation (ONEX.TO) climbed 1.6 to 2.7%.
Our Stance: Traders should monitor the immediate support level at 23,920 closely. Sustaining this level could signal a potential rebound and re-establish bullish momentum. However, a fall below this threshold may suggest the risk of a deeper correction, with additional support zones identified at 23,400 and 23,000. In light of these mixed signals, market participants are likely to adopt a cautious stance, weighing the optimism of potential rebounds against the backdrop of increased volatility.
Commodity Update: On Wednesday, the dollar remained close to a three-month high as significant macroeconomic data emerged, influencing U.S. monetary policy. Gold prices surged to a record $2,790.65 per ounce, reflecting increased safe-haven demand amid rising political uncertainty in the U.S. and Japan, particularly with the presidential election approaching on November 5. Japan's Liberal Democratic Party's recent loss of parliamentary majority added to the turmoil. In commodity markets, silver fell to $34.37 and copper dropped to $9,542.00 per ton. Brent crude futures rose 0.3% to $71.33 a barrel, supported by unexpected declines in U.S. crude and gasoline inventories.
Technical Update: The S&P/TSX Composite Index recently closed at 24,562.55, reflecting a marginal decline of 0.01% amid ongoing market volatility. The utilities sector's notable drop of 1.75% has impacted investor sentiment, but the index remains above its 50-period Simple Moving Average (SMA), indicating that the short-term uptrend is still in play. Traders should monitor the immediate support level at 23,920 closely. Sustaining this level could signal a potential rebound and re-establish bullish momentum. However, a fall below this threshold may suggest the risk of a deeper correction, with additional support zones identified at 23,400 and 23,000. In light of these mixed signals, market participants are likely to adopt a cautious stance, weighing the optimism of potential rebounds against the backdrop of increased volatility. Continued vigilance will be essential as the market navigates these dynamics.