Canadian stocks edged higher on Friday

Index Update:

Canadian stocks edged higher on Friday, extending the previous session's gains. However, early advances driven by strength in gold-linked materials stocks amid a surge in gold prices were tempered by mounting uncertainty surrounding the trilateral trade talks.

After opening lower than yesterday's close, today the benchmark S&P/TSX Composite Index gained ground to lose later in the session but them regained momentum to trade positively throughout the rest of the session before settling at 34,980.00, up by 129.79 points (or 0.37%).

Macro Update:

Canada’s wholesale trade is estimated to have declined 0.7% month-over-month in May 2026, reversing a 0.6% increase in the previous month.

The anticipated decrease partially reflects lower sales in machinery, equipment and supplies.

Mining shares rose on higher gold prices, helped by a weaker dollar and easing expectations of further US interest rate hikes following the latest PCE data.

Meanwhile, Canada and Japan advanced cooperation on mining projects, including potential joint stockpiling, while gold prices rose.

Banking stocks traded lower amid geopolitical tensions after President Trump accused Iran of violating the ceasefire by targeting cargo ships transiting the Strait of Hormuz. Earlier, Iran reaffirmed its right to control shipping through the waterway and warned Gulf states against siding with the US, a day after an attack on a vessel near Oman.

Top Movers:

Barrick gained 1.6%, while Franco-Nevada rose 2.3%. In tech, Shopify rose 4.6%, backed by its Spring ’26 product rollout, while Constellation Software added 1.9%.

Our Stance:

The immediate support is located near 34,800, and maintaining this level would help preserve the current positive technical structure. A sustained hold above support could attract renewed buying interest and support a move towards higher resistance levels in the sessions ahead. Conversely, a decisive break below 34,800 would weaken the near-term outlook, increase selling pressure, and raise the risk of a deeper corrective pullback.

Commodity Update:

The U.S. dollar traded with a weaker tone on Monday but remained on course for its strongest monthly performance in nearly a year as geopolitical tensions in the Gulf continued to support demand ahead of key U.S. labour market data, which could influence the Federal Reserve's interest rate outlook. Gold declined 0.27% to USD 4,085.75 per ounce, while silver fell 0.61% to USD 58.87. Copper gained 0.21% to USD 13,368.00 per tonne, and Brent crude oil advanced 0.80% to USD 72.56 per barrel amid renewed U.S.-Iran tensions.

Technical Update:

The S&P/TSX Composite Index gained 129.79 points (0.37%) on Friday to close at 34,980.00, extending its constructive technical structure. The index continues to trade comfortably above its 50-day Simple Moving Average (SMA), which is acting as a key dynamic support level and reinforcing the prevailing bullish trend. Momentum indicators also remain supportive, with the 14-day Relative Strength Index (RSI) at approximately 54.85, signalling balanced market conditions and suggesting there is still room for additional upside before overbought conditions emerge. Immediate support is located near 34,800, and maintaining this level would help preserve the current positive technical structure. A sustained hold above support could attract renewed buying interest and support a move towards higher resistance levels in the sessions ahead. Conversely, a decisive break below 34,800 would weaken the near-term outlook, increase selling pressure, and raise the risk of a deeper corrective pullback.