Canadian stocks closed roughly flat on Friday

Index Update:  After opening just below yesterday's close, the benchmark S&P/TSX Composite Index gave ground initially but rebounded towards the end of the session to settle at 29,912.19, up by 43.60 points (or 0.15%).

Macro Update:  Data released by Statistics Canada today revealed that the unemployment rate in Canada fell to 6.9% in October from the four-year high of 7.1% in September. The Bank of Canada has estimated that the trade dispute with the U.S. would push economic growth down by 1.5% by the end of 2026, reducing the Gross Domestic Product by roughly $40 billion. Expectations of a lowering of the interest rates by the Bank of Canada are now tanking after the jobs report.

Top Movers:  Among the individual stocks, Perpetua Resources Corp (6.22%), Discovery Silver Corp (5.12%), Iamgold Corp (4.83%), OceanaGold Corp (4.63%), and Algonquin Power and Utilities Corp (7.79%) were the prominent gainers.

Our Stance:  At present, the index is consolidating near a crucial support zone around 29,800. Holding above this level will be vital to sustain market confidence and preserve the broader upward bias, while a decisive break below it could signal weakening momentum and potentially trigger a pullback toward 29,600 and 29,500. 

Commodity Update:  The U.S. dollar held steady in early Asian trade as weak economic data fueled global growth concerns, though hopes of a possible U.S. government deal limited safe-haven demand. Precious metals strengthened, with gold up 1.17% to USD 4,057.00, silver rising 1.99% to USD 49.07, and copper gaining 0.87% to USD 10,789.00. Brent crude increased 0.74% to USD 64.10 on expectations that a resolution to the U.S. shutdown could boost demand.

Technical Update:

On Friday, the S&P/TSX Composite Index gained 43.60 points, or 0.15%, to close at 29,912.19. The modest advance was accompanied by strong trading volumes, reflecting sustained investor confidence and reinforcing the ongoing bullish momentum. Technically, the index remains in a well-defined uptrend, trading comfortably above its 50-period Simple Moving Average (SMA), which continues to serve as key dynamic support. Momentum indicators further support a constructive outlook, with the 14-period Relative Strength Index (RSI) at 47.73, suggesting steady underlying buying interest. At present, the index is consolidating near a crucial support zone around 29,800. Holding above this level will be vital to sustain market confidence and preserve the broader upward bias, while a decisive break below it could signal weakening momentum and potentially trigger a pullback toward 29,600 and 29,500.