Canadian Stocks Held Ground

Index Update:  After opening a little lower than yesterday's close, today the benchmark S&P/TSX Composite Index renewed energy within an hour to trade positive throughout the session before settling at 31,196.71, up by 16.46 points (or 0.05%).

Macro Update:  The U.S. Federal Reserve's monetary policy meeting is slated for December 9-10. Recent U.S. economic data releases indicate a softening job market. Three U.S. Federal Reserve officials reaffirmed their preference for lowering the interest rates early this week. As these developments accelerated expectations of a Fed rate cut, yesterday in Canada, the index settled at a record closing high of 31,180.25. Today, the Current Account Deficit numbers released by Statistics Canada showed that CAD narrowed by C$11.9 billion to C$9.7 billion in the third quarter of 2025. The goods and services deficit fell from C$19.1 billion in the second quarter to C$10.6 billion. Goods exports rose 1.8% to C$186.0 billion while goods imports fell 2.0% to C$197.1 billion. On October 29, the Bank of Canada cut its policy rate by 25 basis points, bringing the rate down to 2.25%. At that time, the central bank Governor Tiff Macklem indicated that as the endpoint of the BoC easing cycle.

Top Movers:  The biggest gainers of the session on the S&P/TSX Composite were goeasy Ltd (TSX:GSY), which rose 2.93% or 3.88 points to trade at 136.09 at the close. MDA Ltd (TSX:MDA) added 2.63% or 0.62 points to end at 24.18 and Superior Plus Corp (TSX:SPB) was up 2.08% or 0.15 points to 7.36 in late trade.

Our Stance:  Price action is currently consolidating around a critical support zone near 31,100. Holding above this level is important for maintaining positive sentiment and preserving the broader uptrend. However, a decisive break below 31,100 could indicate fading momentum and trigger a short-term pullback. In that scenario, the next support levels at 30,800 and 30,700 may help cushion downside pressure and limit deeper corrections. 

Commodity Update:  The U.S. dollar headed for its weakest week since July as expectations grew for a Fed rate cut next month amid thin Thanksgiving trading. Gold rose 0.76% to USD 4,221.65, silver gained 1.98% to USD 54.23, and copper added 0.60% to USD 11,006. Brent crude held steady at USD 63.34, with markets awaiting updates from Russia-Ukraine peace efforts and Sunday’s OPEC+ meeting for supply cues.

Technical Update:

The S&P/TSX Composite Index edged up 16.46 points (+0.05%) on Thursday, closing at 31,196.71. Strong trading volumes supported the move, reflecting firm investor confidence and reinforcing the ongoing bullish momentum. Technically, the index continues to exhibit a healthy upward structure, trading comfortably above its 50-period SMA, which remains a key dynamic support. Momentum conditions also remain constructive, with the RSI at 63.74, indicating steady and strengthening buying interest without showing signs of overextension. Price action is currently consolidating around a critical support zone near 31,100. Holding above this level is important for maintaining positive sentiment and preserving the broader uptrend. However, a decisive break below 31,100 could indicate fading momentum and trigger a short-term pullback. In that scenario, the next support levels at 30,800 and 30,700 may help cushion downside pressure and limit deeper corrections.