Canadian stocks advanced on Monday

index Update:

Canadian equities moved higher on Monday, supported by strength in the energy sector and a sharp rally in silver-related materials stocks, although concerns over Inflation stemming from the lack of progress in a U.S.-Iran peace agreement limited broader market gains.

After opening a little lower than the previous week's close, today the benchmark S&P/TSX Composite Index gained ground to trade positively firm throughout the session before settling at 34,138.88, up by 61.12 points (or 0.18%).

Macro Update:

Optimism has increased among investors ahead of the upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing, with expectations that discussions may include the Gulf crisis, potentially supporting a constructive geopolitical outcome given China’s longstanding tie with Iran.

Meanwhile, the Bank of Canada’s Q1 2026 Market Participants Survey showed expectations for Canada’s real GDP growth at 1.6% by the end of 2026 and 1.9% by the end of 2027, reflecting a stable economic outlook.

Additionally, at last week’s Global Progress Action Summit, Prime Minister Mark Carney emphasized Canada’s openness to deeper sector-specific economic integration with the U.S., signalling continued support for cross-border trade and Investment.

Top Movers:

Among the individual stocks, Endeavour Silver Corp (12.60%), Silvercorp Metals Inc (9.14%), Barrick Mining Corporation (9.06%), Avino Silver and Gold Mines Ltd (8.90%), Strathcona Resources Ltd (3.77%), and Vermilion Energy Inc (3.65%) were the prominent gainers.

Our Stance:

Momentum indicators remain supportive, with the 14-day Relative Strength Index (RSI) at 58.13, signalling steady bullish momentum while leaving room for further upside. Immediate support is seen near the 34,000 level; a sustained break below this zone could lead to an extended consolidation phase and potentially pull the index toward the 33,700 mark in the near term. On the upside, a decisive move above the 34,200-resistance level would strengthen bullish sentiment and could open the door for further gains toward the 34,500 level.

Commodity Update:  

The U.S. dollar edged higher on Monday as investors moved toward safe-haven Assets after renewed tensions between Washington and Tehran. Market participants also remained cautious ahead of upcoming U.S. inflation data, which could reflect the impact of elevated Crude Oil prices. Gold gained 0.19% to USD 4,737.70 per ounce, silver advanced 0.86% to USD 86.70, and copper rose 0.12% to USD 13,915.00. Brent Crude climbed 0.30% to USD 104.52 per barrel after surging nearly 3% in the previous session.

Technical Update:

The S&P/TSX Composite Index advanced 61.12 points, or 0.18%, on Monday to close at 34,138.88. From a technical standpoint, 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 remain supportive, with the 14-day Relative Strength Index (RSI) at 58.13, signalling steady bullish momentum while leaving room for further upside. Immediate support is seen near the 34,000 level; a sustained break below this zone could lead to an extended consolidation phase and potentially pull the index toward the 33,700 mark in the near term. On the upside, a decisive move above the 34,200-resistance level would strengthen bullish sentiment and could open the door for further gains toward the 34,500 level.