Canadian Index closed at a higher note on Wednesday

Index Update:  The benchmark S&P/TSX Composite Index rose 0.5% to close at 33,942.86 on Wednesday, reclaiming territory as a sharp tech surge and banking stability offset broader commodity weakness.

Macro Update:  In economic news, data from S&P Global showed the S&P Global Canada Composite PMI recorded 47.1 in February 2026, up from 46.4 in January and remaining below the 50.0 no-change mark for a fourth straight month. The manufacturing PMI for February came in at 51.0, up from previous month's 50.4, while services rose to 46.5 from 45.8. Data from Statistics Canada showed Canadian business labor productivity rose 0.9% quarter-on-quarter in the third quarter of 2025, rebounding from a 1.0% decline in the second quarter, and beating expectations of 0.4% growth. The increase marked the sixth gain in eight quarters.

Top Movers:  Among materials stocks, Ssr Mining zoomed nearly 13%. Endeavour Silver Corp, G Mining Ventures, Vizsla Silver Corp., Aris Gold Corporation, Methanex, Ivanhoe Mines, First Majestic Silver Corp., Taseko Mines, Capstone Mining Corporation and Torex Gold Resources gained 3%-5%.

Our Stance: Meanwhile, price action is consolidating near the key 33,600 support zone. Holding above this level will be crucial to maintain the bullish bias. However, a decisive break below 33,600 could weaken short-term momentum and potentially trigger a corrective pullback toward the 33,300 and 33,100 support levels.

Commodity Update: The U.S. dollar paused its sharp rally on Thursday, offering brief relief to the struggling euro as investors hoped the Middle East conflict may not drag on as long as feared. Safe-haven demand lifted precious metals, with gold rising 1.33% to USD 5,203.70 and silver jumping 2.92% to USD 85.61, while copper gained 0.69% to USD 13,147. Meanwhile, Brent crude climbed 2.05% to USD 83.07 amid concerns over the prolonged closure of the Strait of Hormuz disrupting global oil flows.

Technical Update:

The S&P/TSX Composite Index rose 157.92 points, or 0.47%, to close at 33,942.86 on Wednesday, supported by solid trading volumes and improved investor sentiment. From a technical perspective, the index continues to maintain a constructive structure, trading comfortably above its 50-period Simple Moving Average (SMA), which remains an important dynamic support within the prevailing uptrend. The 14-period Relative Strength Index (RSI) is currently around 57.08, indicating sustained buying momentum while gradually approaching overbought territory. Meanwhile, price action is consolidating near the key 33,600 support zone. Holding above this level will be crucial to maintain the bullish bias. However, a decisive break below 33,600 could weaken short-term momentum and potentially trigger a corrective pullback toward the 33,300 and 33,100 support levels.