Canadian Stocks Close Moderately Higher

Image Source : Krish Capital Pty Ltd

Index Update: The benchmark S&P/TSX Composite Index spent the day bouncing back and forth across the unchanged line before eventually closing up 115.78 points or 0.5 percent at 25,033.28.

Macro Update: Data from S&P Global said the S&P Global Canada Manufacturing PMI fell to 46.3 in March from 47.8 in the previous month, pointing to a further deterioration in factory activity, pressured by contractions in both output and new orders.

A report from the Washington Post this morning said White House aides have drafted a proposal to impose tariffs of around 20 percent on most imports to the U.S.

Top Movers: E-commerce giant Shopify rose 2.1%, snapping a four-day losing streak, while Brookfield Corporation advanced 2.2%, bolstering the financial sector. A corporate standout was First Quantum, which jumped 4.9% after settling arbitration disputes over its Cobre Panama mine.

Our Stance: Currently, the index is testing a key support level around 24,900. Holding above this mark could pave the way for continued gains, while a break below it may trigger a retracement toward support zones between 24,700 and 24,500. Maintaining levels above these thresholds will be crucial for sustaining bullish sentiment and unlocking potential upside in the near term.

Commodity Update: The dollar edged higher, with other currencies staying within tight ranges as traders awaited details of U.S. President Donald Trump’s tariff plans. Trump has dubbed April 2 "Liberation Day," and reciprocal tariffs on countries imposing duties on U.S. goods will take effect immediately after his announcement, according to White House spokeswoman Karoline Leavitt. In commodities, gold rose 0.45% to $3,160.25, silver gained 0.64% to $34.52, and copper surged 0.55% to $9,736.50. Brent oil held steady at $74.47 per barrel after falling, amid concerns that new U.S. tariffs could escalate a global trade war and reduce crude demand.

Technical Update: On Tuesday, the S&P/TSX Composite Index posted a modest yet encouraging gain, rising 115.78 points to close at 25,033.28, a 0.46% increase. Strong trading volumes underscored investor confidence, with the technology sector leading the charge, climbing 0.83% amid growing market optimism. From a technical standpoint, the index remains in a favorable position, trading comfortably above its 21-period Simple Moving Average (SMA), reinforcing the prevailing bullish trend. The Relative Strength Index (RSI) sits at 51.03, indicating room for further upside without signaling overbought conditions. Currently, the index is testing a key support level around 24,900. Holding above this mark could pave the way for continued gains, while a break below it may trigger a retracement toward support zones between 24,700 and 24,500. Maintaining levels above these thresholds will be crucial for sustaining bullish sentiment and unlocking potential upside in the near term.