Canadian Stocks Edge Higher

Index Update: The benchmark S&P/TSX Composite Index gave up most of the early gains but traded above the flatline before settling at 32,929.09, up by 52.44 points (or 0.16%).

Macro Update: The Bank of Canada is set to announce its decision on the overnight rate tomorrow followed by a press release explaining the reason for its decision. The war, which began on February 28, has catapulted oil prices over the past few weeks. The jump has kindled concerns of long-term inflation among Canadian firms as well as households. Amid inflationary pressures owing to the oil price surge, the central bank is expected to keep the interest rates unchanged (at 2.25%). The Canadian Automobile Association stated that the price of gasoline is nearly 30% higher from the previous month. Recent data on employment in Canada showed a fall in the first two months of 2026. Yesterday's data on inflation showed that the year-on-year inflation rate (Consumer Price Index) fell to 1.80% in February from 2.30% of the previous month while month-on-month inflation increased 0.50% in February. Canada's annual core inflation fell to a 11-month low of 2.30% in February from 2.60% in January while on a month-on-month basis, it rose 0.40% from the previous month.

Top Movers:  Among the individual stocks, Bitfarms Ltd (4.85%), Celestica Inc (4.37%), Open Text Corporation (3.37%), International Petroleum Corporation (3.97%), and Athabasca Oil Corp (3.63%) were the prominent gainers.

Our Stance: Momentum indicators remain weak, with the 14-period RSI near 45.74, suggesting mild bearish pressure. On the downside, immediate support is located around 32,800, and a sustained break below this level could expose further weakness toward the 32,400 zone. 

Commodity Update:  The dollar remained under pressure as mild risk appetite returned ahead of key central bank decisions. Precious metals traded lower, with gold at USD 4,993.30 and silver declining sharply, while copper edged slightly down. Brent crude slipped to USD 102.43 after recent gains, following an unexpected rise in U.S. inventories. Market sentiment stayed cautious, as participants awaited the Federal Reserve’s stance amid persistent inflation concerns linked to elevated oil prices.

Technical Update:

On Tuesday, the S&P/TSX Composite Index advanced 52.44 points, or 0.16%, to close at 32,929.09. Although the index has experienced a recent pullback, the broader market structure still points toward a phase of consolidation rather than a clear trend reversal. From a technical perspective, the index continues to trade below its 21-period Simple Moving Average on the daily chart, which is acting as a dynamic resistance level and reflects a cautious near-term outlook. Momentum indicators remain weak, with the 14-period RSI near 45.74, suggesting mild bearish pressure. On the downside, immediate support is located around 32,800, and a sustained break below this level could expose further weakness toward the 32,400 zone.