Canadian stocks Closed Moderately Lower on Monday

Index Update:  After coming under pressure early in the session, Canadian stocks regained ground over the course of the trading day on Monday but still ended the day moderately lower. The benchmark S&P/TSX Composite Index closed down 77.31 points or 0.25 percent at 30,275.76 after hitting an intraday low of 30,087.48.

Macro Update:  Treasury Secretary Scott Bessent met with Chinese officials in Malaysia over the weekend and said he believes the talks have resulted in a "very successful framework" for U.S. President Donald Trump and his Chinese counterpart Xi Jinping to discuss on Thursday. The weakness on Bay Street also came as Trump announced has is increasing tariffs on Canada by another 10 percent after an ad featuring former President Ronald Reagan speaking negatively about tariffs aired during the World Series over the weekend.

Top Movers:  The biggest gainers of the session on the S&P/TSX Composite were Perpetua Resources Corp (TSX:PPTA), which rose 6.60% or 2.15 points to trade at 34.75 at the close. Lightspeed Commerce Inc (TSX:LSPD) added 4.06% or 0.69 points to end at 17.70 and Lundin Mining Corporation (TSX:LUN) was up 3.28% or 0.68 points to 21.43 in late trade.

Our Stance:  Momentum indicators continue to show underlying strength, with the Relative Strength Index (RSI) at 55.53. On the downside, immediate support is positioned near 30,100 a key level for bulls to defend. A decisive break below this base could open the door to deeper retracements toward 29,900 and 29,800.

Commodity Update:  The dollar weakened on Tuesday ahead of major central bank meetings, with markets anticipating a U.S. rate cut and monitoring President Donald Trump’s Asia tour for progress on a trade deal with China. Gold slipped 0.47% to USD 4,004.10 per ounce, while silver rose 0.03% to USD 46.78 and copper edged up 0.15% to USD 11,031.00. Brent crude eased 0.10% to USD 65.59 as OPEC’s planned output hikes offset recent gains from U.S. sanctions on Russia and trade optimism.

Technical Update: 

The S&P/TSX Composite Index declined by 77.31 points (−0.25%) on Monday to close at 30,275.76, as mild profit-taking tempered recent gains. Despite the pullback, the broader technical structure remains constructive. The index continues to trade comfortably above its 50-period Simple Moving Average (SMA), which serves as dynamic support and reinforces the prevailing short-term uptrend. Sustained closes above this level indicate that buyers remain in control despite near-term volatility. Momentum indicators continue to show underlying strength, with the Relative Strength Index (RSI) at 55.53. On the downside, immediate support is positioned near 30,100 a key level for bulls to defend. A decisive break below this base could open the door to deeper retracements toward 29,900 and 29,800.