Canadian Stocks gave a Silent Closing on Wednesday

Image Source : Krish Capital Pty Ltd

Index Update:

The S&P/TSX Composite Index showed a downside of 0.13% to 24,841.68 on Wednesday, as investors absorbed growing signs of slowing economic activity in North America and ongoing trade-policy challenges.

Macro Update:

Canada’s economy contracted by 0.2% in February, led by a 2.5% drop in mining and oil-and-gas output and a 0.5% decline in construction, underscoring weakening demand across the country’s commodity-driven sectors.

Similarly, Wall Street posted notable losses as U.S. GDP unexpectedly declined in the first quarter, reflecting the initial negative impact of tariff threats and rising policy uncertainty under President Trump.

Top Movers and Losers:

The biggest gainers of the session on the S&P/TSX Composite were New Gold Inc (TSX: NGD), which rose 19.35%, Gildan Activewear Inc. (TSX: GIL) added 7.12% and Badger Infrastructure Solutions Ltd (TSX: BDGI) was up 6.45%. Biggest losers included Ivanhoe Mines Ltd. (TSX: IVN), which fell 5.92%, Vermilion Energy Inc. (TSX: VET) declined 5.45% and International Petroleum Corp (TSX: IPCO) down 5.17%.

Our Stance:

The index remains well above its 21-period Simple Moving Average (SMA), indicating that the short-term uptrend is still intact. However, the recent pullback may suggest a potential loss of momentum, prompting traders to stay alert for any signs of a broader shift in market dynamics. Technical levels remain crucial, with immediate support at 24,500.

Commodity Update:

The dollar steadied Thursday despite weak U.S. data, as hopes of easing trade tensions supported sentiment. The yen remained flat ahead of Japan's central bank meeting. Gold fell 2.12% to $3,248.80, silver slipped 1.11% to $32.17, while copper rose 0.68% to $9,176.20. Brent crude edged up 0.30% to $61.22 after prior losses sparked by potential Saudi supply increases and a Q1 contraction in the U.S. economy.

Technical Update:

On Wednesday, the S&P/TSX Composite Index closed at 24,841.68, down 0.13% on the day. The technology sector led the decline, dropping 1.68%, which weighed heavily on overall market sentiment. Despite this setback, the index remains well above its 21-period Simple Moving Average (SMA), indicating that the short-term uptrend is still intact. However, the recent pullback may suggest a potential loss of momentum, prompting traders to stay alert for any signs of a broader shift in market dynamics. Technical levels remain crucial, with immediate support at 24,500. A hold above this threshold could set the stage for a rebound, while a break below may open the door to deeper correction, with additional support likely near 24,200 and 24,000.