Canadian stocks hit a new high on Thursday

Image Source : Krish Capital Pty Ltd

Index Update:  After opening near yesterday's close, the benchmark S&P/TSX Composite Index entered positive territory and climbed to an intraday high of 27,120.00 post noon. Holding the momentum, the index settled at 27,082.30, up by 109.98 (or 0.41 %).

Macro Update:  Trump extended the "reciprocal tariff" suspension period from July 9 to August 1. Already the UK, China, and Vietnam are done with trade agreements with the US. India and the EU are close on the heels. The Canadian government and companies are hunting for fresh markets outside of the US and have so far found decent success. Thee Canadian foreign minister is pushing to seal free-trade pacts with Southeast Asian countries. Exports to non-US nations rose 5.7% in May, a new high. Now the UK, Singapore, and Italy are importing more from Canada.

Top Movers:  Air Canada (3.74%), Bombardier Inc (3.04%), Brookfield Corporation (2.03%), and Rogers Communication (2.09%) were the prominent gainers.

Our Stance:  From a technical standpoint, the index is currently testing a key support zone near 26,800. Holding above this level is crucial to sustain the upward trend; however, a decisive break below it could trigger a deeper pullback, with the next notable support levels at 26,500 and 26,200 on the daily chart.

Commodity Update:  The U.S. dollar strengthened Friday amid escalating global trade tensions, as President Trump announced new tariffs and proposed 15–20% blanket levies on most trade partners. Gold climbed 0.57% to $3,344.70, and silver rose 1.39% to $37.83. Copper edged up 0.09% to $9,708.75. Brent crude gained 0.28% to $68.83 after a 2% decline triggered by tariff concerns and lowered OPEC demand forecasts.

Technical Update:  On Thursday, the S&P/TSX Composite Index rose by 109.98 points to close at 27,082.30, marking a gain of 0.41%. The financials sector outperformed, adding 0.79% and reflecting renewed optimism in the space. From a technical perspective, the index maintains its bullish structure, trading comfortably above its 21-period Simple Moving Average (SMA). The Relative Strength Index (RSI) is at 69.84, indicating strong momentum and suggesting further upside potential. The index is currently testing a key support zone near 26,800. Holding above this level is crucial to sustain the upward trend; however, a decisive break below it could trigger a deeper pullback, with the next notable support levels at 26,500 and 26,200 on the daily chart.