Canadian stocks ended the day roughly flat on Friday

Image Source : Krish Capital Pty Ltd

Index Update:  Canadian equities closed largely unchanged on Friday, as investors weighed mixed domestic economic data alongside optimism over a potential resolution to the three-year Russia–Ukraine conflict, with the U.S. president set to meet his Russian counterpart in Alaska. After opening a little above yesterday's close, the benchmark S&P/TSX Composite Index managed to reach an intra-day high of 27,932.10 in less than half-hour. Then, failing to carry the momentum, it traded lower for the major part of the session and closed at 27,905.49, down by 10.50 points (or 0.04%).

Macro Update:  Canada's manufacturing sales rose by 0.3% to C$68.5 billion in June. Sales rose in 13 of 21 sub-sectors. Year-on-year, manufacturing sales shrank by 2.7%. Canada's wholesale sales rose 0.7% to C$84.7 billion in June 2025. The yield on the Canadian 10-year government bond climbed above 3.44% in August to a two-week high. A summary of deliberations among Bank of Canada's policymakers, which was released yesterday, showed that the governing council members were divided in their approaches to keeping the rates at 2.75 in July. In a new development, China has filed a lawsuit against Canada at the World Trade Organization over Canada implementing steel tariff rate quotas and placing restrictions on products containing "Chinese steel components".

Top Movers:  Among the individual stocks, Bausch Health Companies (10.98%), Mda Ltd (4.91%), Quebecor Inc (1.23%), Ssr Mining Inc (4.18%), Centerra Gold Inc (3.30%), and The North West Company Inc (3.70%) were the prominent gainers.

Our Stance:  Currently, the index is testing a critical support zone around 27,700. Holding above this level is crucial to sustaining the ongoing uptrend. A decisive break below 27,700 could prompt a retracement, with subsequent support levels at 27,500 and 27,300. Preserving these zones will be vital for maintaining the near-term bullish outlook.

Commodity Update:  The dollar steadied on Monday as markets awaited a key meeting between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskiy. At the same time, attention also turned to the Federal Reserve’s Jackson Hole symposium for policy signals. Precious metals firmed, with gold up 0.20% at $3,389.20, silver rising 0.24% to $38.07, and copper adding 0.14% to $9,779.80. Brent crude slipped 0.40% to $65.62 as supply concerns eased.

Technical Update:

The S&P/TSX Composite Index slipped 10.50 points on Friday to close at 27,905.49, a modest decline of 0.04%. Technology stocks weighed on the market, with the sector falling 0.29% during the session. Despite the pullback, the index maintains a technically strong posture, holding above its 50-period Simple Moving Average (SMA), a key level underpinning the broader bullish trend. The Relative Strength Index (RSI) reads 64.16, reflecting solid momentum. Currently, the index is testing a critical support zone around 27,700. Holding above this level is crucial to sustaining the ongoing uptrend. A decisive break below 27,700 could prompt a retracement, with subsequent support levels at 27,500 and 27,300. Preserving these zones will be vital for maintaining the near-term bullish outlook.