Canadian stocks declined on Thursday

Index Update:  After opening near yesterday's close, the benchmark S&P/TSX Composite Index gave ground to trade firmly negative throughout the session before closing at 29,868.59, down by 234.89 (or 0.78%).

Macro Update:  Data released by Ivey Business School today revealed that Canada's Ivey Purchasing Managers Index (an economic index which measures the month-to-month variation in economic activity) fell to 52.4 in October from 59.8 in September, missing expectations of 55.2. High-level officials talk between both nations had sought to arrive at a bilateral trade framework. However, things took a turn for the worse last week. Displeased by an Ontario-based advertisement mocking tariffs, Trump announced another 10% levy on Canada. Aiming to cut down the reliance on U.S. for trade, Canada's Prime Minister Mark is looking to Europe and Asia with a target to double non-US exports over the next decade. With the economy showing signs of slowdown, on Tuesday, Carney put forward his first budget which was presented by Canada's finance minister François-Philippe Champagne in the House of Commons. While the fiscal plan increases the nation's deficit to $55.3 billion, the budget intends to lower the federal workforce by around 10% in the coming years, resulting in nearly 40,000 job losses in the federal government by 2029.

Top Movers:  Among the individual stocks, BCE Inc (3.45%), Quebecor Inc (2.71%), Vermillion Energy Inc (8.41%), Enerflex Ltd (6.00%), Lundin Mining Corp (7.98%), Equinox Gold Corp (7.76%), Lightspeed Commerce Inc (15.94%), and Torex Gold Resources Inc (5.61%) were the prominent gainers.

Our Stance:  Momentum appears stable as the 14-day RSI stays around the neutral 50 level, suggesting balanced market sentiment. Immediate support is seen at 29,600, followed by 29,500 and 29,400. As long as the index holds above these levels, the overall bullish tone and positive near-term outlook should persist.

Commodity Update:  A mild pullback in the U.S. dollar and uncertainty over the prolonged U.S. government shutdown supported market sentiment on Friday. Gold rose 0.26% to USD 4,001.10 per ounce, while silver advanced 0.34% to USD 48.10. Copper added 0.37% to USD 10,715.00. Brent crude inched up 0.40% to USD 63.65 after three days of losses tied to oversupply and weakening U.S. demand, though it remained on track for a second weekly decline.

Technical Update:

The S&P/TSX Composite Index decreased slightly 0.78% accompanied by lower trading volume on Thursday to close at 29,868.59 points. This move extended the ongoing sideways consolidation that began after the recent peak. Though undergoing a minor correction, the broader technical picture remains constructive, with the index holding well above its key support zone - signaling that the short-term uptrend and buyer control remain intact. Momentum appears stable as the 14-day RSI stays around the neutral 50 level, suggesting balanced market sentiment. Immediate support is seen at 29,600, followed by 29,500 and 29,400. As long as the index holds above these levels, the overall bullish tone and positive near-term outlook should persist.