Canadian Stocks Inch Higher

Index Update:  Canadian stocks edged higher on Tuesday as U.S.-Iran peace talks are slated to resume in a couple of days, while Israel-Lebanon direct talks concluded today, collectively boosting market sentiments. After opening above yesterday's close, today the benchmark S&P/TSX Composite Index gained momentum early in the session and traded positively throughout before settling at 34,102.36, up by 223.12 points (or 0.66%).

Macro Update:  Aside from the U.S.-Iran talks, market sentiments received a boost after envoys from Israel and Lebanon met in Washington today for direct talks mediated by U.S. Secretary of State Marco Rubio. Lebanese Ambassador to the U.S. Nada Hamadeh and Israeli Ambassador to the U.S. Yechiel Leiter are the key participants. At the conclusion of the talks, Leiter stated that both nations are on the same side. In Canada, Prime Minister Mark Carney managed to secure a majority government following the by-election outcome announced yesterday. The Liberal Party is set to hold 174 of 343 seats in the House of Commons, thereby giving Carney a governing majority.

Top Movers:  Among the individual stocks, Sangoma Technologies Corporation (10.82%), Celestica Inc (4.92%), Goeasy Ltd (6.38%), and Brookfield Corporation (4.13%) were the prominent gainers.

Our Stance  the broader technical configuration still suggests a consolidation phase, as the index continues to trade below both the ascending trendline originating from April 2025 and the all-time high set in March 2026. This rebound has also been accompanied by relatively subdued trading volume, which tempers bullish conviction.

Commodity Update: The dollar remained largely flat on Wednesday as investors weighed the possibility that peace talks between the United States and Iran could resume, potentially easing supply disruptions caused by the closure of the Strait of Hormuz. Risk appetite was also supported by a cooler-than-expected U.S. producer inflation report. Gold slipped 0.18% to USD 4,842.15, while silver gained 0.50% to USD 79.96. Copper edged up 0.01% to USD 13,284.00, and Brent crude advanced 0.51% to USD 95.41 per barrel.

Technical Update: 

On Tuesday, the S&P/TSX Composite Index advanced 223.12 points, or 0.66%, to close at 34,102.36, continuing its recovery from the latest trough. Additionally, the 14-period Relative Strength Index (RSI) remains above the midpoint, reinforcing a constructive near-term outlook. However, the broader technical configuration still suggests a consolidation phase, as the index continues to trade below both the ascending trendline originating from April 2025 and the all-time high set in March 2026. This rebound has also been accompanied by relatively subdued trading volume, which tempers bullish conviction. Key support is situated around 31,131 points, while immediate resistance is seen near 34,545 points, defining the current consolidation range.