Canadian stocks gained ground again

Index Update:  After opening above yesterday's close, today the benchmark S&P/TSX Composite Index traded firmly positive throughout the session before settling at a new record closing high of 32,612.93, up by 234.29 points, (or 0.72%).

Macro Update:  Data released by Statistics Canada today revealed that the unemployment rate in Canada rose to 6.8% in December 2025 from 6.5% in the previous month, above market expectations of 6.6%.

Employment was little changed, rising by 8,200 jobs in December 2025 following three consecutive monthly increases totaling 181,000 from September to November. Labor force participation rose 0.3 percentage points to 65.4% in December.

This data could impact the Bank of Canada's interest rate decision later this month.

Last month, the BoC held interest rates steady at 2.25%, as Governor Tiff Macklem announced that the rates were "at about the right level.

Top Movers:  Among the individual stocks, Terravest Capital Inc (6.73%), Headwater Exploration Inc (3.15%), Suncor Energy Inc (2.64%), Endeavour Silver Corp (9.39%), West Fraser Timber CO Ltd (6.96%), and First Majestic Silver Corp (6.09%) were the prominent gainers.

Our Stance: Technically, the index continues to trade comfortably above its 21-period SMA, reinforcing the short-term uptrend. The 14-period RSI stands at 68.54, indicating solid buying interest while remaining below overbought levels. Price action is consolidating near the key 32,600 support zone; holding above this level is vital to maintaining positive sentiment. A decisive break below could weaken momentum and open the door to a corrective move toward 32,400–32,300.

Commodity Update:  The U.S. dollar eased from its strongest level in one month on Monday after U.S. prosecutors opened a criminal investigation into Federal Reserve Chair Jerome Powell, intensifying tensions with the Trump administration. Gold rose 2.00 % to USD 4,590.96, silver surged 4.93 % to USD 83.26, and copper climbed 0.97 % to USD 13,106.35. Brent crude was slightly down 0.01 % at USD 63.29 amid Iran supply concerns.

Technical Update: 

On Friday, the S&P/TSX Composite Index rose 234.29 points (+0.72%) to close at 32,612.93, supported by healthy volumes that reflect strong investor confidence and sustained bullish momentum. Technically, the index continues to trade comfortably above its 21-period SMA, reinforcing the short-term uptrend. The 14-period RSI stands at 68.54, indicating solid buying interest while remaining below overbought levels. Price action is consolidating near the key 32,600 support zone; holding above this level is vital to maintaining positive sentiment. A decisive break below could weaken momentum and open the door to a corrective move toward 32,400–32,300.