Canadian Stocks Ends Flat

Image Source : Krish Capital Pty Ltd

Index Update:  After opening just above yesterday's close, the benchmark S&P/TSX Composite Index gained momentum until early afternoon, reaching an intra-day high of 27,859.93. The index subsequently fell into negative territory before closing at 27,758.68, down by 2.59 points (or 0.01%).

Macro Update:  Data released by Statistics Canada revealed that the unemployment rate in Canada remained unchanged from the previous month at 6.9% in July with 23.8% of those classified as long-term unemployed. WTO and IMF data showed today that the US tariff rate now averages 20.1%, the highest level since the early 1910s. While some of the major partners, namely the EU, Japan, and South Korea have struck a deal, negotiations with other nations are underway.

Top Movers:  Among the individual stocks, Quebecor Inc (2.83%), Chartwell Retirement Residences (1.94%), Open Text Corp (10.01%), Saputo Inc (8.92%), and Jamieson Wellness Inc (7.21%) were the prominent gainers.

Our Stance:  The index is currently testing a key support zone near 27,500. Sustaining levels above this threshold will be crucial to maintaining the uptrend, while a decisive break below could open the door to a retracement toward the 27,300–27,100 range.

Commodity Update:  The U.S. dollar held steady on Monday after last week’s losses, with traders awaiting Tuesday’s July CPI report and progress in U.S.-China trade talks to avoid higher tariffs. Gold dropped 1.50% to $3,439.10, silver fell 0.97% to $38.18, and copper gained 0.14% to $9,778.45. Brent crude slipped 0.78% to $66.07, extending a 4% weekly decline on higher U.S. tariffs, OPEC’s output hike, and optimism over a potential U.S.-Russia-Ukraine ceasefire agreement.

Technical Update:

The S&P/TSX Composite Index slipped by 2.59 points on Friday to close at 27,758.68, a marginal 0.01% decline. The consumer cyclicals sector led the weakness, falling 1.02% during the session. Despite this pullback, the index remains technically resilient, holding above its 21-period Simple Moving Average (SMA), which continues to underpin the broader bullish trend. The Relative Strength Index (RSI) is at 63.03, reflecting solid market momentum. The index is currently testing a key support zone near 27,500. Sustaining levels above this threshold will be crucial to maintaining the uptrend, while a decisive break below could open the door to a retracement toward the 27,300–27,100 range.