Canadian stocks climbed on Wednesday

                                                Source: Krish Capital Pty Ltd

Index Update:

The S&P/TSX Composite climbed 0.28% to a record close of 30,108 on Wednesday, supported by strength in miners and Canadian tech. Sentiment was tempered by concerns over a partial U.S. government shutdown, which threatens to delay key jobs data and blur the interest-rate outlook.

Macro Update:

U.S. Eyes Stakes in Australian Miners: Washington is considering equity stakes in Australian critical minerals firms to reduce reliance on China, which recently restricted exports of rare earths and magnets. The plan targets lithium, cobalt, and rare earths vital for clean energy, defense, and semiconductors. Meanwhile, China is in talks with Malaysia to build a rare earths processing venture, signaling a push to keep its industry dominance intact.

USDA Halts Reports Amid Shutdown: The Agriculture Department confirmed it has suspended all new data releases during the shutdown, including the weekly export sales and next week’s WASDE report. Most USDA employees have been furloughed, raising concerns about transparency and decision-making in agriculture markets at a critical time.

Treasury Yields Hold Steady: The 10-year Treasury yield hovered around 4.1% after the Supreme Court scheduled a January hearing on Trump’s bid to remove Fed Governor Lisa Cook, calming fears over central bank independence. Yields were also pressured by the government shutdown and a weak ADP report showing a surprise 32,000 drop in private-sector jobs for September.

Trump Pledges Soybean Aid Before Xi Meeting: President Trump vowed to support U.S. farmers, saying soybeans will be a priority when he meets China’s Xi Jinping later this month. With China reducing soybean imports from the U.S., American farmers have ceded market share to Brazil and Argentina. Trump suggested tariff revenues could be channeled into new farm support, echoing the $32 billion bailout from his first term.

Top Movers and Losers:

The best performers of the session on the S&P/TSX Composite were Stella-Jones Inc. (TSX: SJ), which rose 4.10%. Meanwhile, NovaGold Resources Inc (TSX:NG) added 4.06% and New Gold Inc (TSX: NGD) was up 3.42%. The worst performers of the session were Curaleaf Holdings Inc (TSX: CURA), which fell 13.93%. Energy Fuels Inc. (TSX: EFR) declined 6.76% and H&R Real Estate Investment Trust (TSX: HR_u) was down 5.78%.

Our Stance: The index remains in a firm uptrend, holding well above its 21-period SMA, which continues to serve as dynamic support. Momentum is robust, with the RSI at 78.14, indicating persistent buying pressure. The index is currently consolidating near a key support zone around 29,900. Sustaining this level will be vital to maintaining market confidence and the broader uptrend. Conversely, a decisive break below could point to short-term bullish exhaustion, opening the door for a pullback toward 29,700 and 29,500.

Commodity Update: Asian currencies and the dollar were steady Thursday as markets weighed the risk of a U.S. government shutdown, firmer South Korean inflation, and Australia’s weak trade data. Gold slipped 0.25% to $3,887.70, silver fell 0.85% to $47.27, while copper gained 0.34% to $10,416.55. Brent crude rose 0.57% to $65.72 after three sessions of declines, supported by prospects of tighter sanctions on Russian oil despite oversupply concerns.

Technical Update:

On Wednesday, the S&P/TSX Composite Index advanced 84.86 points (0.28%) to close at 30,107.67. The modest gain came on strong trading volumes, underscoring sustained investor confidence and reinforcing the prevailing bullish momentum. From a technical perspective, the index remains in a firm uptrend, holding well above its 21-period SMA, which continues to serve as dynamic support. Momentum is robust, with the RSI at 78.14, indicating persistent buying pressure. The index is currently consolidating near a key support zone around 29,900. Sustaining this level will be vital to maintaining market confidence and the broader uptrend. Conversely, a decisive break below could point to short-term bullish exhaustion, opening the door for a pullback toward 29,700 and 29,500.