Canadian Index closed at a lower note on Thursday

Index Update:  The benchmark S&P/TSX Composite Index extended its decline to close 0.98% lower at 33,609.97 on Thursday as intensifying conflict in the Middle East and persistent domestic inflation pressures drove a broad sell-off across mining and financial sectors.

Macro Update:  The price of crude oil has skyrocketed to over $80 a barrel amid supply disruption fears, leading to worries about inflation. The U.S. military said it struck an Iranian vessel described as a "drone carrier." Iran said that new inventions are on the wary and it is ready for a long war. The escalating West Asia conflict resulted in a sharp spike in oil and gasoline prices, threatening to set off convulsions in the world economy. As rate cut expectations fade, investors now eye U.S. retail sales, jobs and wage data later in the day for further direction.

Top Movers:  Gold miners faced the brunt of the market retreat with Agnico Eagle and Barrick Gold plummeting 4.7% and 2.9% respectively while metals producers like First Quantum Minerals and HudBay Minerals saw sharper double-digit percentage drops as risk appetite vanished. Financials including Brookfield, TD Bank, BMO and Scotiabank retreated between 1.2% and 1.8% as rising bond yields heightened concerns over credit costs.

Our Stance: Momentum indicators remain relatively stable, with the 14-period Relative Strength Index (RSI) at 52.42, suggesting moderating but still positive momentum. On the downside, 33,400 serves as the immediate support level. A decisive break below this zone could trigger further consolidation toward the 33,000 mark in the near term.

Commodity Update:  The U.S. dollar held broadly steady in early Asian trade on Friday and remained on track for its strongest weekly gain in over a year as rising Middle East tensions lifted demand for safe-haven assets. Gold advanced 1.19% to USD 5,141.55, silver surged 2.74% to USD 84.42, and copper gained 0.58% to USD 13,004.50. Brent crude slipped 1.33% to USD 84.27 as the U.S. granted waivers allowing Indian refiners to continue buying Russian crude to ease supply pressures.

Technical Update:

The S&P/TSX Composite Index edged lower on Thursday, closing at 33,609.97, as short-term profit-taking cooled the recent upward momentum. Despite the modest pullback, the broader technical outlook remains constructive, pointing to a phase of healthy consolidation rather than a trend reversal. The index continues to trade above its 50-period Simple Moving Average (SMA), which remains an important dynamic support level supporting the prevailing structure. Momentum indicators remain relatively stable, with the 14-period Relative Strength Index (RSI) at 52.42, suggesting moderating but still positive momentum. On the downside, 33,400 serves as the immediate support level. A decisive break below this zone could trigger further consolidation toward the 33,000 mark in the near term.