Canadian stocks came under pressure on Wednesday

Index Update:  Canadian stocks came under pressure early in the session on Wednesday and saw further downside over the course of the trading day, closing notably lower. The benchmark S&P/TSX Composite Index fell to new lows for the session in late-day trading before regaining some ground going into the close. The index still ended the day down 274.90 points or 0.9 percent at 30,144.78.

Macro Update:  While the Bank of Canada lowered interest rates by a quarter point as widely expected, the Canadian central bank indicated it now expects to keep rates on hold. Fed also lowered interest rates by another quarter point as widely expected, Fed Chair Jerome Powell's post-meeting remarks partly offset optimism about another rate cut in December. Powell said a further reduction in rates in December is "not a foregone conclusion," noting Fed officials had "strongly differing views about how to proceed" at the final meeting of the year.

Top Movers:  The biggest gainers of the session on the S&P/TSX Composite were New Gold Inc (TSX:NGD), which rose 11.10% or 0.98 points to trade at 9.81 at the close. Lundin Mining Corporation (TSX:LUN) added 6.49% or 1.43 points to end at 23.47 and Capstone Mining Corp (TSX:CS) was up 5.29% or 0.62 points to 12.33 in late trade.

Our Stance: Momentum indicators also reflect underlying resilience, with the 14-period Relative Strength Index (RSI) holding near 52.29, suggesting steady momentum within a healthy range. On the downside, immediate support is observed around 30,100, which will be crucial for bulls to defend. A decisive break below this level could open the door for a deeper correction toward 29,900 and 29,800, while maintaining closes above it would preserve the current bullish bias.

Commodity Update:  The U.S. dollar weakened on Thursday after the Fed cut interest rates but said another reduction in December was less likely. The greenback’s earlier strength faded during Asian trading. Gold slipped 1.35% to USD 3,946.70 per ounce, silver fell 1.34% to USD 47.26, and copper declined 0.85% to USD 11,065.00. Brent crude eased 0.05% to USD 64.89 as markets awaited U.S.-China trade talks for clarity on growth prospects.

Technical Update: 

The S&P/TSX Composite Index fell 274.90 points (−0.90%) on Wednesday, closing at 30,144.78, as mild profit-taking weighed on sentiment. Despite the pullback, the broader technical outlook remains constructive, with the index continuing to trade comfortably above its 50-period Simple Moving Average (SMA). This moving average serves as a dynamic support level, reinforcing the prevailing short-term uptrend and signaling that buyers still maintain control. Momentum indicators also reflect underlying resilience, with the 14-period Relative Strength Index (RSI) holding near 52.29, suggesting steady momentum within a healthy range. On the downside, immediate support is observed around 30,100, which will be crucial for bulls to defend. A decisive break below this level could open the door for a deeper correction toward 29,900 and 29,800, while maintaining closes above it would preserve the current bullish bias.