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: After five successive days of losses, the Canadian market closed on a firm note on Monday. The benchmark S&P/TSX Composite Index ended up by 101.99 points or 0.42% at 24,565.66. The index touched a low of 24,406.42 and a high of 24,598.96.
Macro Update: The U.S monthly jobs report as well as a report on personal income and spending that includes the Federal Reserve's preferred inflation readings are likely to be in the spotlight.
Reports on third quarter U.S GDP, consumer confidence, pending home sales and manufacturing sector activity may also attract some attention.
Another data from Statistics Canada said the new house price index in Canada remained unchanged at 0% in September. On a yearly basis, the index increased to 0.2% in September from 0% in August.
Top Movers: Bitfarms (BITF.TO) soared 12.8%, topping the list of gainers in the Information Technology Capped Index. Sylogist (SYZ.TO) gained nearly 6% and Sangoma Technologies (STC.TO) ended with a gain of 3%. Open Text Corp (OTEX.TO), Descartes Systems Group (DSG.TO), Celestica Inc (CLS.TO) and Shopify Inc (SHOP.TO) gained 1 to 1.5%.
Our Stance: The index is currently testing a critical support level of around 24,000. Maintaining this support is essential to preserve upward momentum; a drop below could lead to a pullback, with key support levels identified between 23,500 and 23,000. For continued growth, it’s crucial for the index to stay above these levels.
Commodity Update: On Tuesday, the dollar eased slightly but remained close to recent highs ahead of key U.S. economic data that could influence Federal Reserve policy. Solid U.S. economic indicators and potential political shifts, including stronger prospects for a Trump win, may support a higher dollar/yen in the coming weeks. In commodities, gold rose 0.25% to $2,762.75 per ounce, silver increased 0.10% to $34.04, while copper slipped 0.18% to $9,542.00 per ton. Brent crude futures climbed 0.7% to $71.94 a barrel, recovering after recent losses due to easing Middle East conflict concerns. Investors are closely watching upcoming GDP data and election developments.
Technical Update: On Monday, the S&P/TSX Composite Index increased by 101.99 points, closing at 24,565,66, a 0.42% gain that reflects strong investor confidence and robust trading volumes. The healthcare sector contributed positively, rising by 1.69%. Technically, the index remains well positioned above its 50-period Simple Moving Average (SMA), indicating a bullish trend. The Relative Strength Index (RSI) stands at 63.56, suggesting the market is healthy, allowing for further potential upside. The index is currently testing a critical support level of around 24,000. Maintaining this support is essential to preserve upward momentum; a drop below could lead to a pullback, with key support levels identified between 23,500 and 23,000. For continued growth, it’s crucial for the index to stay above these levels.