Canadian stocks advanced on Friday

index Update:

Canadian stocks advanced on Friday as Iran is reviewing the U.S. peace proposal to end the war and reopen the Strait of Hormuz, boosting market sentiments and easing inflationary pressure.

After opening above yesterday's close, today the benchmark S&P/TSX Composite Index traded firmly positive throughout the session before settling at 34,077.76, up by 221.14 points (or 0.65%).

Macro Update:

Last month-end, the Bank of Canada stated that it might intervene and increase interest rates if oil prices stayed higher and pushed Inflation further.

However, as the domestic jobs data has thrown a surprising decline in employment, investors are rethinking their bets on further rate hikes for this year.

Data released by Statistics Canada today revealed that the Unemployment rate in Canada rose to 6.90% in April from 6.70% in the previous month, far exceeding expectations that it would remain unchanged at 6.70%, to mark the highest jobless rate in six months.

Employment in Canada edged down by 18,000 in April following a gain of 14,000 in the prior month and missing forecasts for a 15,000 increase.

Full-time employment fell by 47,000, while part-time positions increased by 29,000.

Top Movers:

Among the individual stocks, Kinaxis Inc (9.52%), Constellation Software Inc (6.89%), Shopify Inc (5.75%), Docebo Inc (4.80%), and Killam Apartment REIT (5.50%) were the prominent gainers.

Our Stance:

Momentum indicators also remain supportive, with the 14-day Relative Strength Index (RSI) near 57.26, indicating steady bullish momentum. Immediate downside support is seen around the 33,900 level, and a sustained move below this zone could trigger an extended consolidation phase and potentially drag the index toward the 33,600 mark in the near term.

Commodity Update:  

The U.S. dollar strengthened against major currencies in early Asian trade on Monday after stronger-than-expected U.S. jobs data reinforced expectations of economic resilience. Safe-haven Demand also increased as the fragile U.S.-Iran ceasefire remained under pressure. Gold declined 0.81% to USD 4,692.50, while silver gained 0.83% to USD 81.53 and copper rose 0.52% to USD 13,634.00. Brent Crude oil surged 3.10% to USD 104.43 after U.S. President Donald Trump described Iran’s response to a U.S. peace proposal as “totally unacceptable,” keeping geopolitical tensions elevated.

Technical Update:

S&P/TSX Composite Index slipped 221.14 points, or 0.65%, on Friday to close at 34,077.76, reflecting mild profit-booking following recent gains. Despite the decline, overall market sentiment remains constructive, supported by selective buying interest across key sectors. From a technical perspective, the index continues to trade above its 50-day Simple Moving Average (SMA), which is acting as a reliable dynamic support level and reinforcing the broader positive trend structure. Momentum indicators also remain supportive, with the 14-day Relative Strength Index (RSI) near 57.26, indicating steady bullish momentum. Immediate downside support is seen around the 33,900 level, and a sustained move below this zone could trigger an extended consolidation phase and potentially drag the index toward the 33,600 mark in the near term.