Canadian stocks edged lower on Thursday

index Update:

Partially reversing yesterday’s gains, Canadian stocks edged lower on Thursday amid reports that Iran, while preparing a response to the U.S. peace proposal aimed at ending the war, has introduced new regulations for vessels transiting the Strait of Hormuz to reinforce its authority over the strategic waterway.

After opening a little higher than yesterday's close, today the benchmark S&P/TSX Composite Index lost the gains made earlier in the session to trade lower throughout the rest of the session before settling at 33,856.62, down by 125.20 points (or 0.37%).

Macro Update:

Axios reported yesterday that the U.S. and Iran are closing in on a one-page Memorandum of Understanding featuring 14 key points with an aim to end the war immediately and arrive at a framework for extensive negotiations on all critical issues over a 30-day period.

With the Canada-United States-Mexico Agreement on Free Trade coming up for review, investors are awaiting a breakthrough from the ongoing negotiations between Canada and the U.S.

Meanwhile, Mexico launched a two-day major trade mission to Canada today involving more than 200 Mexican businesses aimed to expand bilateral commercial links with more than thousands of Business meetings planned.

Top Movers:

Among the individual stocks, Kinaxis Inc (9.52%), Constellation Software Inc (6.89%), Shopify Inc (5.75%), Docebo Inc (4.80%), and Killam Apartment REIT (5.50%) were the prominent gainers.

Our Stance:

Momentum indicators also remain supportive, with the 14-period Relative Strength Index (RSI) near 54.20, indicating steady bullish momentum. Immediate downside support is seen around the 33,700 level, and a sustained move below this zone could lead to extended consolidation and potentially drag the index toward the 33,400 mark in the near term.

Commodity Update:  

The U.S. dollar index traded higher as hopes around a U.S.-Iran ceasefire remained uncertain, while tensions continued near the Strait of Hormuz. Gold prices rose 0.31% to USD 4,725.40, silver gained 0.12% to USD 80.28, while copper slipped 0.403% to USD 13,343.20. Brent Crude oil surged 2.10% to USD 103.37 per barrel after reports of fresh exchanges of fire between U.S. and Iranian forces. The renewed conflict raised concerns over Supply disruptions through the Strait of Hormuz, a critical global oil and gas shipping route.

Technical Update:

On Thursday, the S&P/TSX Composite Index slipped 125.20 points, or 0.37%, to close at 33,856.62, reflecting mild profit-booking after recent gains. Despite the decline, overall market sentiment remains constructive, supported by selective buying interest across key sectors. Technically, the index continues to trade above its 50-period Simple Moving Average (SMA) on the Daily Chart, which is acting as a reliable dynamic support level and reinforcing the broader positive trend structure. Momentum indicators also remain supportive, with the 14-period Relative Strength Index (RSI) near 54.20, indicating steady bullish momentum. Immediate downside support is seen around the 33,700 level, and a sustained move below this zone could lead to extended consolidation and potentially drag the index toward the 33,400 mark in the near term.