Canadian stocks edged lower on Monday

Index Update:  After opening below the previous week's close, today the benchmark S&P/TSX Composite Index traded firmly negatively throughout the session before settling at 31,896.59, down by 103.17 points (or 0.32%).

Macro Update:  The Canadian PMO later announced that Carney's government will provide $2.5 billion in economic assistance for Ukraine. Of note, since 2022, Canada has provided around $22 billion to aid Ukraine. Reportedly, Carney's gesture has not been welcomed by Canadians, who are already facing the effects of Trump's tariffs.  Since August, Canadian exports to the U.S. have been slapped with 35% levies by Trump. Even as Canada was negotiating with their U.S. counterparts to arrive at a mutually favorable deal, Trump abruptly halted all trade talks with Canada. 

With no reports released today on the economic data front, investors are anticipating the minutes of the U.S. Federal Reserve's December meeting, scheduled to be released tomorrow, to get a glimpse of the Fed's policy outlook and clues on its interest rate trajectory. 

Top Movers:  Among the individual stocks, BCE Inc (1.84%), Telus Corp (1.54%), Terravest Capital Inc (3.35%), and Jamieson Wellness Inc (1.71%) were the prominent gainers.

Our Stance: Momentum indicators remain supportive, with the RSI holding at 63.36, signaling sustained strength and keeping the trend within neutral-to-positive territory. On the downside, the 31,800 level represents immediate support. A decisive break below this zone could invite further corrective pressure toward 31,600, with the next major support located near the 31,500 mark. 

Commodity Update:  The U.S. dollar traded steady on Tuesday ahead of the Federal Reserve’s December minutes, expected to highlight policy divergences for 2026. Holiday-thinned liquidity kept currencies calm. Gold rose 0.70% to USD 4,374.05, silver gained 4.43% to USD 73.582, and copper advanced 2.24% to USD 12,484.82. Brent crude eased 0.10% to USD 61.43 despite lingering Russia–Ukraine supply concerns.

Technical Update:

The S&P/TSX Composite Index declined 103.17 points (−0.32%) on Monday to close at 31,896.59, as short-term profit-taking tempered the recent upside momentum. Despite this modest pullback, the broader technical outlook remains constructive. The index continues to trade comfortably above its 21-period Simple Moving Average (SMA), which acts as a key short-term trend support and reinforces the prevailing bullish bias. Momentum indicators remain supportive, with the RSI holding at 63.36, signaling sustained strength and keeping the trend within neutral-to-positive territory. On the downside, the 31,800 level represents immediate support. A decisive break below this zone could invite further corrective pressure toward 31,600, with the next major support located near the 31,500 mark.