Canadian stocks closed Slightly Lower

Index Update:   The benchmark S&P/TSX Composite Index pulled back well off its early highs and spent much of the day lingering near the unchanged line before closing down 43.95 points or 0.1 percent at 31,483.44.

Macro Update:  Statistics Canada released a report showing Canadian consumer prices rose 2.2 percent on a year-over-year basis in November, matching the increase in October. A separate Statistics Canada report said Canadian manufacturing sales decreased 1.0 percent in October, driven by lower sales in the chemical, wood product and transportation equipment subsectors.

Top Movers:  The biggest gainers of the session on the S&P/TSX Composite were Discovery Silver Corp (TSX:DSV), which rose 4.67% or 0.39 points to trade at 8.74 at the close. Empire Company Ltd (TSX:EMPa) added 3.15% or 1.45 points to end at 47.50 and South Bow Corp (TSX:SOBO) was up 2.82% or 1.06 points to 38.62 in late trade.

Our Stance:  Momentum indicators also remain supportive, with the RSI holding at 60.91 signalling sustained strength and keeping the trend firmly within neutral-to-positive territory. On the downside, the 31,400 level represents immediate support. A decisive break below this zone could trigger further corrective pressure toward 31,200, with the next major support positioned near the 31,000 mark.

Commodity Update:   The U.S. dollar slipped to near a two-month low in early Asian trade on Tuesday as investors awaited key economic releases, including the delayed November U.S. jobs report. Commodities traded lower, with gold down 0.39% to USD 4,318.50, silver falling 0.63% to USD 63.21, and copper easing 0.66% to USD 11,599.05. Brent crude declined 0.40% to USD 60.32 amid easing geopolitical concerns.

Technical Update:

The S&P/TSX Composite Index slipped 43.95 points (−0.14%) on Monday to close at 31,483.44, as short-term profit-taking tempered recent upside momentum. Despite this mild pullback, the broader technical outlook remains constructive. The index continues to trade comfortably above its 21-period Simple Moving Average (SMA), a key short-term trend support that reinforces the prevailing bullish bias. Momentum indicators also remain supportive, with the RSI holding at 60.91 signalling sustained strength and keeping the trend firmly within neutral-to-positive territory. On the downside, the 31,400 level represents immediate support. A decisive break below this zone could trigger further corrective pressure toward 31,200, with the next major support positioned near the 31,000 mark.