Canadian stocks moved higher during trading on Thursday

Image Source : Krish Capital Pty Ltd

Index Update: The S&P/TSX Composite Index edged up 0.05% to close at 26,342.29 on Thursday, amid a balancing act between external trade news and weaker domestic economic data. A phone conversation between President’s Xi Jinping and Donald Trump renewed optimism for reduced US - China tariffs, boosting resource-focused stocks like oil producers, supported by a recovery in crude prices.

Macro Update: Trump and Musk to Speak After Public Feud: U.S. President Donald Trump and Elon Musk are scheduled to have a call on Friday following a public spat involving threats over government contracts and Musk suggesting Trump's impeachment.

Canada Employment Mostly Flat in May: In May, Canada’s employment showed little change, with a modest increase of 8,800 jobs. Gains in full-time positions (+58,000) were nearly offset by a decline in part-time jobs (-49,000). Employment rose for women aged 25–54 but fell for men in the same group, while youth and senior job levels remained steady. Job growth stalled since January, with mixed sector and regional performance across the country

Top Movers: The biggest gainers of the session on the S&P/TSX Composite were First Majestic Silver Corp. (TSX: AG), which rose 15.49% or 1.54 points to trade at 11.48 at the close. Fortuna Mining Corp (TSX: FVI) added 9.65% or 0.89 points to end at 10.11 and Ivanhoe Mines Ltd. (TSX: IVN) was up 8.18% or 0.87 points to 11.50 in late trade.

Our Stance: The index remains on solid footing, continuing to trade above its 21-period Simple Moving Average (SMA)—a sign that the prevailing trend remains bullish. Meanwhile, the Relative Strength Index (RSI) stands at 68.77, indicating strong momentum without yet entering overbought territory, thereby leaving room for further upside.

Commodity Update: The dollar faced a weekly decline on Friday amid weak U.S. economic data and stalled trade talks ahead of a key deadline. Markets awaited the U.S. nonfarm payrolls report for further cues. Gold rose 0.30% to $3,385.55, silver gained 1.06% to $36.17, and copper edged up 0.28% to $9,749.45. Brent crude slipped 0.12% to $65.22 but was set for its first weekly gain in three weeks.

Technical Update: On Thursday, the S&P/TSX Composite Index recorded a modest advance, rising 13.29 points to close at 26,342.29, representing a 0.05% gain. The uptick was supported by strong trading volumes, reflecting ongoing investor confidence and enthusiasm across the broader market. A key driver of the day's performance was the basic materials sector, which climbed 0.72%, highlighting growing optimism toward commodities and resource-related equities. From a technical standpoint, the index remains on solid footing, continuing to trade above its 21-period Simple Moving Average (SMA)—a sign that the prevailing trend remains bullish. Meanwhile, the Relative Strength Index (RSI) stands at 68.77, indicating strong momentum without yet entering overbought territory, thereby leaving room for further upside. The index is currently testing a key support zone around 26,100. Holding this level will be critical for preserving the bullish outlook. Should the index fall below this threshold, a potential pullback could unfold, with secondary support levels on the weekly chart identified in the 25,700–25,500 range.