Canadian stocks edged lower on Thursday

Index Update:  After three consecutive sessions of gains, Canadian equities slipped on Thursday as investors turned cautious ahead of the second round of U.S.-Iran talks. Market sentiment remains tentatively optimistic, even as the ongoing U.S. blockade on Iranian ports continues to heighten concerns over global oil and energy supply.

After opening above yesterday's close, today the benchmark S&P/TSX Composite Index held momentum early in the session but gave ground later to trade below the flatline before settling at 34,052.23, down by 103.76 points (or 0.30%).

Macro Update:  On the domestic front, after securing a majority government, Prime Minister Mark Carney suspended the federal fuel excise tax from April 20 until Labor Day (September 7) to reduce the costs for business houses and truck owners.

In Canada, the number of homes across the country sold in March, fell 2.30% from the earlier year.

The Canadian Real Estate Association (CREA) has downgraded its forecast for home sales activity in 2026.

Top Movers: Among the individual stocks, First Capital REIT Units (8.01%), Riocon Real Est Un (3.91%), Quebecor Inc (3.67%), and Terravest Industries Inc (3.88%) were the prominent gainers.

Our Stance: The broader trend still points to consolidation, as price action lacks a decisive breakout. Immediate support is seen near 33,900, and a sustained move below this level could weaken sentiment, potentially exposing the index to a deeper pullback toward the 33,500 zone.

Commodity Update:  

On Friday, the Japanese yen weakened after the Bank of Japan refrained from signaling a rate hike next week, while traders remained cautious and stayed on the sidelines ahead of potential U.S.–Iran peace talks. Gold fell 0.07% to USD 4,805.05 per ounce, silver rose 0.27% to USD 78.925, and copper slipped 0.16% to USD 13,243.15. Meanwhile, Brent crude declined 1.01% to USD 98.38 per barrel, amid optimism over a Lebanon–Israel ceasefire and possible U.S.–Iran discussions.

Technical Update:

On Thursday, the S&P/TSX Composite Index declined 103.76 points, or 0.30%, to close at 34,052.23. From a technical standpoint, the index continues to hold above its 21-period Simple Moving Average (SMA), which is acting as dynamic support and maintaining a constructive near-term bias. The 14-period Relative Strength Index (RSI) remains firm around 63.76, reflecting steady momentum with room for further upside before entering overbought territory. However, the broader trend still points to consolidation, as price action lacks a decisive breakout. Immediate support is seen near 33,900, and a sustained move below this level could weaken sentiment, potentially exposing the index to a deeper pullback toward the 33,500 zone.