Canadian stocks inched higher on Friday

Index Update:  Canadian stocks inched higher on Friday, triggered by positive signs on easing of Canada-China trade friction after the leaders of the two nations discussed bilateral trade relations, with future meetings on the anvil for bettering mutual economic ties. After opening higher than the previous session's close, the benchmark S&P/TSX Composite Index remained volatile throughout the session before finally closing at 30,260.74, up by 81.76 points (or 0.27%).

Macro Update:  In a significant development today, on the sidelines of the APEC summit, Canadian Prime Minister Mark Carney and Chinese President Xi Jinping held their first formal talks in eight years. Both leaders are engaged in bettering trade relations and in smoothening out the mutual pain points affecting their economic activities. Furthermore, Xi invited Carney to visit China, a request which Carney readily accepted. Carney emphasized that constructive and pragmatic dialogue is the proper route to address current issues. Data released by Statistics Canada today revealed that, Canadian GDP expanded by 0.1% from the previous month in September of 2025, reflecting a 0.1% increase in the third quarter, trimming the revised 0.3% contraction in August. Output from goods producing industries contracted by 0.6% while output from services fell by 0.1%.

Top Movers:  Among the individual stocks, Sangoma Technologies (6.50%), Sylogist Ltd (5.80%), Quarterhill Inc (4.81%), Bausch Health Companies Inc (6.81%), and Jamieson Wellness Inc (3.48%) were the prominent gainers.

Our Stance: The index is currently consolidating near a key support zone around 30,100, and holding above this level will be essential to maintain market confidence and the broader upward trajectory. However, a decisive break below this zone could indicate fading bullish momentum, potentially paving the way for a pullback toward 30,000 and 29,800.

Commodity Update:  The U.S. dollar strengthened to a near three-month high on Monday ahead of key economic data that could influence the Federal Reserve’s policy outlook. Gold rose 0.38% to USD 4,011.50 per ounce, silver gained 0.66% to USD 48.48, while copper slipped 0.40% to USD 10,852.00. Brent crude climbed 0.73% to USD 65.24 after OPEC+ postponed planned production hikes for the first quarter of next year.

Technical Update:

On Friday, the S&P/TSX Composite Index advanced 81.76 points, or 0.27%, to close at 30,260.74. The gain was accompanied by strong trading volumes, underscoring sustained investor confidence and reinforcing the prevailing bullish sentiment. Technically, the index continues to exhibit a solid uptrend, trading comfortably above its 21-period Simple Moving Average (SMA), which serves as a dynamic support level. Momentum readings remain constructive, with the 14-period Relative Strength Index (RSI) at 54.38, signaling steady buying interest. The index is currently consolidating near a key support zone around 30,100, and holding above this level will be essential to maintain market confidence and the broader upward trajectory. However, a decisive break below this zone could indicate fading bullish momentum, potentially paving the way for a pullback toward 30,000 and 29,800.