Index Update:

Canadian stocks moved higher on Wednesday, partially offsetting three previous sessions of losses as investors parsed the decision by the Bank of Canada to hold the interest rates at 2.25% amid ongoing Canada-U.S. Trade War and the intensifying U.S.-Iran re-escalation.

After opening higher than yesterday's close, today the benchmark S&P/TSX Composite index traded positive throughout the session before settling at 36,091.61, up by 265.88 points (or 0.74%).

Macro Update:

On Wednesday after the Bank of Canada kept its key policy rate unchanged at 2.25%, as widely expected.

The BoC said recent data had reaffirmed the Governing Council’s view of a broadening economic recovery. However, it noted that upside risks to Inflation had increased, while new tariffs had made the growth outlook more uncertain.

The Central Bank left the future path for Monetary Policy open, saying it would adjust policy as needed.

Canada’s 10-year government Bond Yield rose to 3.8% in September, an over two-year high, after the BoC highlighted upside risks to inflation.

Top Movers:

The best performers of the session on the S&P/TSX Composite were Endeavour Silver Corp. (TSX:EDR), which rose 8.15% or 1.16 points to trade at 15.40 at the close. Meanwhile, AbraSilver Resource Corp (TSX:ABRA) added 7.49% or 1.10 points to end at 15.79 and G Mining Ventures Corp (TSX:GMIN) was up 7.22% or 3.54 points to 52.55 in late trade.

Our Stance:

From a technical perspective, moderate momentum suggests that the index is not yet in overbought territory. Immediate support is positioned near 35,900, and sustained trading above this level would preserve the bullish outlook and potentially support a retest of the recent high near 36,200.

Commodity Update:

The U.S. dollar weakened on Thursday as softer expectations for energy-driven inflation eased pressure on the Federal Reserve to raise interest rates. A weaker dollar supported bullion, with gold rising 1.22% to USD 4,469.70 and silver gaining 1.42% to USD 66.41. Copper advanced 0.28% to USD 14,260.25. Brent Crude fell 0.40% to USD 95.25 after three sessions of gains, as President Donald Trump said renewed attacks on Iran would not last “too long,” while U.S. officials pointed to resilient oil flows through the Strait of Hormuz.

Technical Update:

The S&P/TSX Composite Index gained 0.74% on Wednesday to close at 36,091.61, extending its recent recovery and maintaining a constructive technical structure. The index continues to trade firmly above its 50-day Simple Moving Average (SMA), which is acting as a key dynamic support level and reinforcing the prevailing medium-term uptrend. The 14-day Relative Strength Index (RSI) stands at 42.59, indicating moderate momentum and suggesting that the index is not yet in overbought territory. Immediate support is positioned near 35,900, and sustained trading above this level would preserve the bullish outlook and potentially support a retest of the recent high near 36,200.