Canadian stocks move higher on Friday

Index Update:  After opening a little above yesterday's close, the benchmark S&P/TSX Composite Index held the momentum gained early in the session and traded firmly positive throughout the session before settling at a new record closing high of 31,382.78, up by 186.07 points (or 0.60%).

Macro Update:  Data released by Statistics Canada today revealed that the Gross Domestic Product expanded at an annualized 2.6% for the third quarter 2025, bouncing back from a 1.8% drop in the previous period, much higher than forecasts of 0.5%. Notably, it is the strongest increase in GDP this year. On a quarterly basis, GDP rose by 0.6% on quarter in the third quarter following a revised 0.5% contraction in the previous period. On a monthly basis, the GDP contracted by 0.3% from October, according to a flash estimate. Output from goods-producing industries weakened in October while services output also fell. Carney signed an agreement with Alberta's premier Danielle Smith. The deal rolls back climate rolls to increase investments in energy sector. This also scraps a planned limit on emissions on the oil and gas sector as well as shuns rules on clean electricity production.

Top Movers:  Among the individual stocks, Aya Gold and Silver Inc, Endeavor Silver Corp, First Majestic Silver Corp, and Vermilion Energy Inc were the prominent gainers.

Our Stance:  Price action is currently consolidating near an important support area around 31,700. Sustaining levels above this zone will be essential for preserving positive sentiment and maintaining a broader uptrend. Conversely, a decisive break down below this support could signal waning momentum and open the door for a potential pullback toward 31,600 and 31,500. 

Commodity Update:  The dollar slipped at the start of December as markets positioned for a crucial month that may deliver the Fed’s final rate cut of the year and confirm a dovish successor to Jerome Powell. Commodities traded firmer, with gold up 0.51% at USD 4,276.40, silver rising 1.53% to USD 57.31, and copper edging 0.35% higher to USD 11,237. Brent crude jumped 1.51% to $63.32 after OPEC+ paused its planned output increases.

Technical Update:

On Friday, the S&P/TSX Composite Index advanced 186.07 points, or 0.60%, to close at 31,382.78. The move higher was supported by strong trading volumes, signaling firm investor confidence and reinforcing the prevailing bullish momentum. Technically, the index continues to trend upward, holding comfortably above its 21-period Simple Moving Average (SMA), which remains a key dynamic support level. Momentum indicators also remain constructive, with the 14-period Relative Strength Index (RSI) at 63.56, reflecting steady buying pressure. Price action is currently consolidating near an important support area around 31,700. Sustaining levels above this zone will be essential for preserving positive sentiment and maintaining a broader uptrend. Conversely, a decisive break down below this support could signal waning momentum and open the door for a potential pullback toward 31,600 and 31,500.