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Image Souce: Krish Capital Pty Ltd
Index Update: The Canadian market ended weak on Wednesday, weighed down by losses in materials and technology sectors. The benchmark S&P/TSX Composite Index ended down 54.76 points or 0.22% at 24,507.79 after scaling a low of 24,428.10 and a high of 24,571.26 intraday.
Macro Update: On the U.S. economic front, payroll processor ADP released a report showing private sector employment in the U.S. shot up by much more than anticipated in the month of October.
The U.S Commerce Department said gross domestic product shot up by 2.8 percent in the third quarter after surging by 3.0 percent in the second quarter. Economists had expected another 3.0 percent jump.
Top Movers: Fortuna Silver Mines (FVI.TO), Seabridge Gold (SEA.TO), First Majestic Silver Corp (AG.TO), Pan American Silver Corp (PAAS.TO) and Hudbay Minerals (HBM.TO) closed down 2.5 to 4%.
Our Stance: Traders should monitor this closely for any shifts. Key technical levels to watch include immediate support at 23,920; maintaining above this level could lead to a rebound, while a break below may trigger a deeper correction, with additional support at 23,400 and 23,000.
Commodity Update: On Thursday, the yen faced pressure as the Bank of Japan maintained ultra-low interest rates. Meanwhile, the U.S. dollar consolidated ahead of key jobs data and the upcoming presidential election on November 5. Gold prices soared to a record $2,797.80 per ounce, driven by heightened safe-haven demand amid rising political uncertainty in both the U.S. and Japan. Silver dipped 0.78% to $33.81, while copper edged up 0.09% to $9,572.00 per ton. Brent crude futures rose 0.5% to $72.90 a barrel, supported by optimism over U.S. fuel demand and OPEC+ considering delaying a planned output increase.
Technical Update: On Wednesday, the S&P/TSX Composite Index closed at 24,507.79, down 0.22%. The basic materials sector led the decline, falling 1.65%, impacting overall market sentiment. Despite this setback, the index remains above its 21-period Simple Moving Average (SMA), indicating the short-term uptrend is still intact. The Relative Strength Index (RSI) is at 60.47, suggesting a healthy market but with potential for softening momentum. Traders should monitor this closely for any shifts. Key technical levels to watch include immediate support at 23,920; maintaining above this level could lead to a rebound, while a break below may trigger a deeper correction, with additional support at 23,400 and 23,000. Moving forward, market participants are likely to tread carefully, balancing optimism with caution due to the mixed signals in the market and individual sectors.