Canadian stocks closed Slightly Lower

Index Update:  The S&P/TSX Composite Index ended Wednesday’s session slightly down by 13.91 points (−0.04%) at 31,250.02, failing to extend gains for a fourth straight day as weakness in heavyweight financial stocks offset strength in commodities. Losses across major banks weighed on sentiment. In contrast, energy and basic materials provided support, buoyed by higher oil and metal prices.

Macro Update Foreign Investment Surges in Canada:  Foreign inflows hit a CAD 46.6 bn monthly high, led by heavy buying of bonds and energy and mining equities. Canadians simultaneously reduced exposure to foreign, mainly US, assets.

US Inflation Seen Firm:  US CPI is expected to edge up to 3.1%, staying above the Fed’s target. Data quality concerns persist due to reporting disruptions from the government shutdown.

Top Movers and losers:  The biggest gainers of the session on the S&P/TSX Composite were Cargojet Inc (TSX: CJT), which rose 6.26%. Baytex Energy Corp (TSX: BTE) added 4.58% and Discovery Silver Corp (TSX: DSV) was up 4.56. Biggest losers included Toromont Industries Ltd . (TSX: TIH), which fell 5.64%. TransAlta Corp (TSX: TA) declined 5.40% and Badger Infrastructure Solutions Ltd (TSX: BDGI) down 4.94%.

Our Stance:  The index continues to trade comfortably above its 21-period Simple Moving Average (SMA), which acts as an important short-term trend support and reinforces the prevailing bullish bias. Momentum indicators also remain supportive, with the Relative Strength Index (RSI) holding at 55.56 signalling sustained strength and keeping the trend within neutral-to-positive territory.

Commodity Update:  The U.S. dollar remained firm against major peers on Thursday as investors positioned ahead of central bank decisions in the UK, Europe, and Japan. Precious metals weakened, with gold slipping 0.34% to USD 4,364.00, silver down 0.54% to USD 66.54, and copper easing 0.28% to USD 11,696.00. Meanwhile, Brent crude jumped 1.30% to USD 59.68 after U.S. sanctions tightened on Venezuelan oil flows.

Technical Update:  

The S&P/TSX Composite Index edged lower by 13.91 points (−0.04%) on Wednesday, closing at 31,250.02, as short-term profit-taking tempered the recent upside momentum. Despite this marginal pullback, the broader technical structure remains constructive. The index continues to trade comfortably above its 21-period Simple Moving Average (SMA), which acts as an important short-term trend support and reinforces the prevailing bullish bias. Momentum indicators also remain supportive, with the Relative Strength Index (RSI) holding at 55.56 signalling sustained strength and keeping the trend within neutral-to-positive territory. On the downside, the 31,200 level represents immediate support. A decisive break below this zone could trigger additional corrective pressure toward the 31,000 mark, with the next major support area positioned near 30,900.