Canadian Stocks moved a little higher on Wednesday

Index Update:  Following two days of consecutive gains, Canadian moved a little higher on Wednesday as traders weighed the impact of the U.S.-enforced blockade on Iran's ports against the proposed second round of U.S.-Iran negotiations coming up in a few days.

After opening just a little above yesterday's close, today the benchmark S&P/TSX Composite Index gave ground early in the session but regained the momentum to trade positive throughout the rest of the day before settling at 34,155.99, up by 53.63 points (or 0.16%).

Macro Update: The peace talks between the U.S. and Iranian delegations last Saturday ended in failure following which Trump ordered U.S. naval forces stationed near Iran to block all ships traveling to and from Iranian ports across the Strait of Hormuz as a strategy to cripple Iran's oil exports and compel the nation to concede to U.S. demands.

Yesterday, in an interview with the New York Post, Trump confirmed that a U.S. delegation is preparing to meet their Iranian counterparts for the second time in Pakistan in a couple of days.

Data released by Statistics Canada today revealed that Canada's manufacturing sales rose 3.60% to C$71.20 billion in February, rebounding from a 3.00% decline in January.

Canada's wholesale trade rose by 2.00% month-on-month to C$86.80 billion in February, below the initially reported 2.30% gain, following a revised 1.10% decline in January.

Canadian investors are also awaiting a breakthrough development in the ongoing Canada-U.S. negotiations for renewal of Canada-United States-Mexico Agreement.

Top Movers:  Among the individual stocks, Shopify Inc (8.12%), Coveo Solutions Inc (6.02%), Descartes Sys (5.77%), Curaleaf Holdings Inc (8.43%), and Energy Fuels Inc (6.83%) were the prominent gainers.

Our Stance: The broader trend still suggests a consolidation phase, as price action lacks a decisive breakout. Immediate support is placed near 33,900, and a sustained move below this level could weaken sentiment and expose the index to a potential decline toward the 33,600 zone.

Commodity Update: On Thursday, the U.S. dollar remained close to its weakest level since early March against major currencies as optimism over a possible peace agreement between the United States and Iran improved market sentiment and reduced demand for safe-haven assets. Gold rose 0.45% to USD 4,846.15 per ounce, silver climbed 1.09% to USD 80.50, and copper advanced 0.19% to USD 13,312.70. Meanwhile, Brent crude slipped 0.09% to USD 94.83 per barrel.

Technical Update:

On Wednesday, the S&P/TSX Composite Index gained 53.63 points, or 0.16%, to close at 34,155.99, indicating a modest return of buying interest following recent volatility. From a technical standpoint, the index continues to hold above its 21-period Simple Moving Average (SMA), which is acting as dynamic support and maintaining a constructive near-term bias. The 14-period Relative Strength Index (RSI) remains firm around 65.82, reflecting steady momentum with room for further upside before reaching overbought conditions. However, the broader trend still suggests a consolidation phase, as price action lacks a decisive breakout. Immediate support is placed near 33,900, and a sustained move below this level could weaken sentiment and expose the index to a potential decline toward the 33,600 zone.