Canadian Stocks Edged Higher

Index Update:   After an early move to the upside, the benchmark S&P/TSX Composite Index gave background over the course of the morning and briefly dipped into negative territory before rebounding in afternoon trading. The index closed at 32,851.53, up by 101.25 points (or 0.31%).

Macro Update:  Data released by Statistics Canada today revealed that in December 2025, while producer prices fell 0.6% month-over-month, they increased 4.9% year-on-year. Yesterday, the results of the fourth-quarter 2025 Business Outlook Survey showed that business sentiment remains subdued with firms prioritizing spending on maintenance owing to continued trade-related uncertainty.

Top Movers:  Among the individual stocks, Vermillion Energy Inc (6.88%), Athabasca Oil Corp (6.86%), Methanex Corp (6.30%), Gfl Environmental Inc (4.73%), and Alimentation Couche-Tard Inc (3.12%) were the prominent gainers.

Our Stance:  Price action is currently consolidating near the key 32,800 support zone, and holding above this level will be critical to preserving positive sentiment and the broader bullish bias. Conversely, a decisive break below 32,800 could weaken near-term momentum and open the door for a corrective move toward the 32,600–32,500 support range.

Commodity Update:  The U.S. dollar held onto overnight gains against major peers on Thursday after President Donald Trump withdrew earlier tariff threats against several European NATO nations, easing trade-related concerns. Gold declined 1.06% to USD 4,786.20, while silver slipped 0.09% to USD 92.55. Copper rose 0.56% to USD 12,823.90. Brent crude edged up 0.15% to USD 65.34, supported by reduced trade tensions and a steadier global demand outlook.

 Technical Update:

The S&P/TSX Composite Index recorded solid gains on Wednesday, rising 101.25 points (+0.31%) to close at 32,851.53, supported by good trading volumes that reflect healthy investor participation and reinforce the prevailing bullish momentum. From a technical standpoint, the index maintains a constructive upward structure, trading comfortably above its 50-period Simple Moving Average (SMA), which continues to act as an important dynamic support for the ongoing uptrend. Momentum indicators remain supportive, with the 14-period Relative Strength Index (RSI) at 64.67, signaling sustained buying interest without entering overbought territory. Price action is currently consolidating near the key 32,800 support zone, and holding above this level will be critical to preserving positive sentiment and the broader bullish bias. Conversely, a decisive break below 32,800 could weaken near-term momentum and open the door for a corrective move toward the 32,600–32,500 support range.