Index Update:  After opening above the previous session's close, today the benchmark S&P/TSX Composite Index gradually lost momentum until the early afternoon after which it gained ground before settling at 32,564.13, up by 175.53 points (or 0.54%).

Macro Update:  S&P Global's Composite Purchasing Managers' Index for Canada came in 46.4 in January 2026, down from 46.7 in December 2025, remaining below the 50.0 no-change mark for a third straight month. The data revealed stable growth in manufacturing sector, though services fell to 45.8 from 46.5. New business volumes declined for the fourteenth consecutive month.

Top Movers:  Among the individual stocks, Pet Valu Holdings Ltd (5.20%), Restaurant Brands International Inc (4.49%), Dollarama Inc (4.08%), Alimentation Couche-Tard Inc (4.75%), and Firstservice Corp (7.07%) were the prominent gainers.

Our Stance:  Momentum indicators remain favorable, with the 14-period RSI at 51.63, reflecting steady buying interest without signs of overheating. In the near term, price action will consolidate around the 32,500-support zone. Holding above this level should preserve the positive bias, while a break lower may trigger a short-term pullback toward 32,300–32,100.

Commodity Update:  The U.S. dollar steadied in early Asian trade as markets awaited interest rate decisions from the European Central Bank and the Bank of England, both widely expected to keep policy unchanged. Commodities weakened, with gold slipping 1.76% to USD 4,864.70, silver tumbling 9.56% to USD 76.33, and copper easing 1.35% to USD 12,885.50. Brent crude fell 1.40% to USD 68.47 after the U.S. and Iran agreed to hold talks in Oman, easing geopolitical supply concerns.

Technical Update:

The S&P/TSX Composite Index advanced on Wednesday, rising 0.56% to close at 32,571.55, supported by robust trading volumes that signal strong investor participation and reinforce the prevailing bullish tone. Technically, the index maintains a constructive upward structure, trading comfortably above its 50-period Simple Moving Average (SMA), which continues to act as an important dynamic support. Momentum indicators remain favorable, with the 14-period RSI at 51.63, reflecting steady buying interest without signs of overheating. In the near term, price action will consolidate around the 32,500-support zone. Holding above this level should preserve the positive bias, while a break lower may trigger a short-term pullback toward 32,300–32,100.

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