Canadian Index closed lower on Friday

Index Update:  The S&P/TSX Composite Index moved to the downside early in the session and remained in negative territory through the day before eventually closing down 161.97 points or 34,339.99.

Macro Update: Data from Statistics Canada showed the GDP in Canada contracted an annualized 0.6% in the fourth quarter of 2025, after a 2.4% expansion in the previous period. The Canadian GDP was unchanged from the previous month in January of 2026, according to an advance estimate. A report from the Canadian Federation of Independent Business said Canada's CFIB Business Barometer long-term index, which tracks 12-month forward expectations for business performance, climbed to 64.8 in February 2026, up from January's revised 59.3. This marked the highest reading since April 2022.

Top Movers:  On the upside, energy and materials provided a vital buffer as oil prices climbed and gold hit two-month peaks.

Enbridge gained 1.4% and Agnico Eagle rose 1.6%, while Fairfax Financial added 0.4% on news it is the frontrunner to acquire India’s IDBI Bank.

Our Stance:  Momentum remains favorable, with the 14-period RSI at 65.71, reflecting underlying strength and sustained buying interest. Immediate support is seen near 34,300; a sustained break below this level may extend consolidation toward the 34,000 zone before fresh upside attempts emerge.

Commodity Update:   Safe-haven demand intensified on Monday after escalating tensions in the Middle East unsettled global markets. The euro weakened while the U.S. dollar strengthened, and the Swiss franc advanced as risk aversion deepened. Gold climbed 2.25% to USD 5,367.70, while silver gained 1.44% to USD 94.64. Copper edged down 0.07% to USD 13,360.00. Meanwhile, Brent crude surged 7.37% to USD 78.24, reaching multi-month highs amid supply disruption concerns.

Technical Update: 

The S&P/TSX Composite Index edged lower on Friday to close at 34,339.99, as mild profit-taking trimmed recent gains. Despite the dip, the broader technical structure remains constructive, pointing to orderly consolidation rather than a reversal. The index continues to trade above its 21-period SMA, which is acting as dynamic support and preserving the short-term uptrend. Momentum remains favorable, with the 14-period RSI at 65.71, reflecting underlying strength and sustained buying interest. Immediate support is seen near 34,300; a sustained break below this level may extend consolidation toward the 34,000 zone before fresh upside attempts emerge.