Canadian stocks edged lower on Monday

index Update:  Canadian stocks edged lower on Monday amid rising oil Supply concerns after the U.S. cancelled peace talks with Iran, leaving the Strait of Hormuz to remain shut. After opening below the prior week’s close, the index-txcx">S&P/TSX Composite index briefly moved higher but quickly lost momentum, trending lower for the remainder of the session and finishing at 33,818.19, down 85.92 points, or 0.25%.

Macro Update: After requests from Pakistan, U.S. President Donald Trump agreed to a second round of peace talks.

Iran demanded the Withdrawal of the naval blockade enforced on Iranian ports by the U.S. navy as a precondition for talks.

On the economic front, it was an uneventful day for Canada with no significant data releases.

Last week's Inflation data showed a jump in headline Inflation to 2.40% in March, up from 1.80% in February.

The Bank of Canada is expected to hold its benchmark rate steady at 2.25% in its upcoming meeting on Wednesday.

Investors in Canada are awaiting some development with regard to the review of the Canada-United States-Mexico trade agreement.

Top Movers:  Among the individual stocks, Arc Resources Ltd (21.15%), Kelt Exploration Ltd (13.48%), Lithium Americas Corp (12.60%), Advantage Energy Ltd (6.95%), Birchcliff Energy Ltd (6.13%), Blackberry Limited (4.48%), and Curaleaf Holdings Inc (3.76%) were the prominent gainers.

Our Stance: The broader trend points to consolidation, as the index lacks a clear breakout catalyst. Immediate support is seen near 33,600; a sustained break below this level could weaken sentiment and expose the index to a deeper pullback toward the 33,300 zone.

Commodity Update:  The Japanese yen held steady in Asian trade on Tuesday ahead of the Bank of Japan policy decision, while focus also remained on the Federal Reserve. Gold declined 0.15% to USD 4,686.40, silver slipped 0.61% to USD 74.56, and copper eased 0.19% to USD 13,191.80. Brent Crude rose 0.40% to USD 108.68 amid tensions around the Strait of Hormuz and comments from Donald Trump on Iran.

Technical Update:

On Monday, the S&P/TSX Composite index edged lower by 85.92 points (0.25%) to close at 33,818.19, reflecting a mixed tone rather than outright weakness. From a technical perspective, the index continues to trade above its 21-period Simple Moving Average (SMA), which is acting as dynamic support and helping maintain a constructive near-term bias. Momentum remains steady, with the 14-period RSI hovering near 55.61, indicating underlying strength while still leaving room for further upside. However, the broader trend points to consolidation, as the index lacks a clear breakout catalyst. Immediate support is seen near 33,600; a sustained break below this level could weaken sentiment and expose the index to a deeper pullback toward the 33,300 zone.