Canadian Stocks Edge Lower

Index Update:  The benchmark S&P/TSX Composite gained momentum until early noon but then gave ground to trade negative through the remaining session before settling at 33,119.83, down by 150.82 points (or 0.45%).

Macro Update:  According to the data, the core consumer prices (i.e., excluding food and energy) rose by 0.2% from the previous month. The year-on-year core consumer inflation rate stood at 2.5% in February, unchanged from January. The headline consumer price index rose by 0.3% in February with a sharp price rise seen in fuel and gasoline, which lifted aggregate energy costs by 0.6%. Year-on-year inflation stood steady at 2.4% for February, unchanged from January. However, economists shifted focus away from the February report as they await next month's figures that would reveal the cascading effect of the current Middle East conflict on the U.S. economy. In Canada, Lori Idlout, a member of the New Democrats Party in the parliament, defected to join the Liberal Party, thereby pushing Prime Minister Mark Carney closer to a majority in the House of Commons.

Top Movers:  Among the individual stocks, Parex Resources Inc (6.34%), Cenovus Energy Inc (4.58%), Strathcona Resources Ltd (4.57%), and Brookfield Infra Partners (2.25%) were the prominent gainers.

Our Stance: Momentum indicators remain relatively subdued, with the 14-period Relative Strength Index (RSI) hovering near 46.56, signalling mild negative momentum. On the downside, immediate support is placed around 32,700, and a decisive break below this level may lead to further consolidation toward the 32,400 zone in the near term.

Commodity Update:  The U.S. dollar remained steady on Wednesday as investors stayed cautious, waiting for clearer developments in the ongoing U.S.–Israel conflict with Iran. Uncertainty around a potential resolution kept overall market sentiment fragile. In commodities, gold slipped 0.40% to USD 5,221.40, silver declined 0.88% to USD 88.78, and copper eased 0.31% to USD 13,129. Meanwhile, Brent crude edged up 0.13% to USD 87.91 after reports that the IEA may release record oil reserves to ease supply concerns.

Technical Update:

The S&P/TSX Composite Index edged lower on Wednesday, closing at 33,119.83 as short-term profit-taking paused the recent upward momentum. Despite the decline, the broader market structure suggests a phase of healthy consolidation rather than a clear trend reversal. Technically, the index continues to trade below its 21-period Simple Moving Average (SMA) on the daily chart, which is acting as a dynamic resistance level and reflecting a cautious near-term outlook. Momentum indicators remain relatively subdued, with the 14-period Relative Strength Index (RSI) hovering near 46.56, signalling mild negative momentum. On the downside, immediate support is placed around 32,700, and a decisive break below this level may lead to further consolidation toward the 32,400 zone in the near term.