Canadian stocks moved higher on Monday

Index Update:

After opening just, a little below the previous week's close, today the benchmark S&P/TSX Composite Index gained momentum to trade positively throughout the session before settling at 32,183.88, up by 260.36 points (or 0.82%).

Macro Update:

On the economic data front, S&P Global's Canada Manufacturing Purchasing Managers' Index rose to 50.4 for January 2026 from 48.6 in the previous month. This marks the end of an eleven-month downturn, indicating that there is an expansion of industrial activity despite U.S. tariff pressures and prevailing global trade uncertainty.

Last weekend, after U.S. President Donald Trump announced that he has finalized Kevin Warsh as his choice to succeed current U.S. Federal Reserve Chair Jerome Powell, stocks linked to gold and silver plummeted, pulling down the index.

Today, the office of the Parliamentary Budget Officer (the government's budget watchdog) stated that Carney's plans will cost approximately $12.4 billion for Canada over a period of five years. The PBO estimates that the one-time payment could cause more than $3.1 billion outgo this year alone.

Top Movers:

Among the individual stocks, Alimentation Couche-Tard Inc (4.38%), Empire Company Ltd (4.23%), Loblaw CO (2.69%), Aritzia Inc (6.53%), and Goeasy Ltd (3.78%) were the prominent gainers.

Our Stance:

Momentum indicators remain favourable, with the 14-period Relative Strength Index (RSI) at 44.44, indicating sustained buying interest. Price action is consolidating near the critical 32,100 support zone; holding this level is important to preserve positive sentiment, while a decisive break below could trigger a short-term corrective move toward 31,800–31,700.

Commodity Update:

The U.S. dollar held firm on Tuesday, supported by upbeat economic data and shifting expectations around Federal Reserve policy, which outweighed concerns over a potential U.S. government shutdown. Commodities posted broad gains, with gold rising 3.36% to USD 4,810.50, silver climbing 7.04% to USD 82.41, and copper advancing 0.60% to USD 13,008.90. Brent crude edged up 0.20% to USD 66.42 after sharp losses, as easing U.S.–Iran tensions reduced risk premiums.

Technical Update:

The S&P/TSX Composite Index advanced on Monday, rising 260.36 points (+0.82%) to close at 32,183.88. The rally was supported by robust trading volumes, reflecting strong investor participation and reinforcing the prevailing bullish momentum. Technically, the index maintains a constructive upward structure, trading above its 50-period Simple Moving Average (SMA), which continues to act as key dynamic support for the ongoing uptrend. Momentum indicators remain favourable, with the 14-period Relative Strength Index (RSI) at 44.44, indicating sustained buying interest. Price action is consolidating near the critical 32,100 support zone; holding this level is important to preserve positive sentiment, while a decisive break below could trigger a short-term corrective move toward 31,800–31,700.