Canadian stocks gained ground on Thursday

Index Update:  After opening below yesterday's close, today the benchmark S&P/TSX Composite Index retained the momentum gained earlier in the session and traded positive before settling at 32,378.64, up by 243.15 points (or 0.76%).

Macro Update:  Data released by Statistics Canada today revealed that Canada recorded a trade deficit of C$583 million in October 2025 compared to C$243 million surplus in September. The report said imports increased 3.4%, while exports were up 2.1%. Exports to the U.S. fell 3.4%, while imports surged 5.3%. Canada's surplus with the U.S. shrunk from C$8.4 billion in September to C$4.8 billion in October. Investors are awaiting tomorrow's December employment data releases, both in the U.S. and Canada, which could help deduce the monetary policy paths of the central banks in both countries.

Top Movers:  Among the individual stocks, Baytex Energy Corp (6.98%), Vermillion Energy Inc (3.97%), Cenovus Energy Inc (3.42%), Cargojet Inc (7.49%), 5N Plus Inc (7.14%), Mda Ltd (6.56%), and Pet Valu Holdings Ltd (2.67%) were the prominent gainers.

Our Stance:  Price action is consolidating near the important support zone around 32,300. Holding above this level is crucial to maintaining positive sentiment and preserving the broader uptrend. A decisive break below this area, however, could signal weakening momentum and expose the index to a corrective move toward the 32,100 and 32,000 levels.

Commodity Update:  The U.S. dollar strengthened in early Asian trade on Friday as investors awaited the latest U.S. jobs report and watched an upcoming Supreme Court ruling on President Donald Trump’s emergency tariff powers. Commodities traded higher, with gold rising 0.34% to USD 4,475.20, silver surging 1.56% to USD 76.32, and copper gaining 0.84% to USD 12,812.00. Brent crude climbed 0.71% to USD 62.43, marking a third weekly gain.

Technical Update:

On Thursday, the S&P/TSX Composite Index advanced 243.15 points, or 0.76%, to close at 32,378.64, supported by healthy trading volumes that signal strong investor confidence and reinforce the prevailing bullish momentum. Technically, the index remains comfortably above its 21-period Simple Moving Average (SMA), which continues to act as a key dynamic support, validating the strength of the short-term uptrend. Momentum indicators are constructive, with the 14-period Relative Strength Index (RSI) at 65.46, indicating sustained buying interest without entering overbought territory. Price action is consolidating near the important support zone around 32,300. Holding above this level is crucial to maintaining positive sentiment and preserving the broader uptrend. A decisive break below this area, however, could signal weakening momentum and expose the index to a corrective move toward the 32,100 and 32,000 levels.