Canadian stocks moved higher on Tuesday

Image Source : Krish Capital Pty Ltd

Index Update:  After opening higher than previous the close, the benchmark S&P/TSX Composite Index saw further upside to reach an intraday high of 27,954.02 by mid-afternoon. Then, inching down but staying positive, the index managed to settle at 27,921.26, up by 146.03 points (or 0.53%).

Macro Update: Data revealed by the US Labor Department revealed core consumer prices in the US rose by 0.3% from July, while the annual core consumer price inflation rate accelerated to 3.1% in July. The Consumer Price Index (CPI) in the US In July increased 0.2%, month-over-month, while the US annual inflation rate remained at 2.7%. On the trade front, US President Donald Trump signed an executive order granting an extension of the "tariff truce" between China and the US for 90 days, i.e., until November 10. Notably, this is the second extension given to China for arriving at a deal with the US. In addition, Trump is meeting Russian President Vladimir Putin on Friday in Alaska to discuss means to end Russia's war with Ukraine.

Top Movers:  Among the individual stocks, Bausch Health Companies (4.56%), Altus Group Ltd (9.51%), Exchange Income Corp (5.13%), Iamgold Corp (6.44%), and Capstone Mining Corp (4.97%) were the prominent gainers.

Our Stance: The index is testing key support near 27,700, which will be crucial to maintain for the current bullish trend to persist. A decisive break below this level could trigger a pullback toward the next supports at 27,600 and 27,400, while sustained trade above these zones would be essential to preserve upward momentum in the days ahead.

Commodity Update: The dollar weakened on Wednesday after soft U.S. inflation data fueled expectations of a Fed rate cut next month, while President Trump's political moves further pressured the currency. Gold rose 0.12% to $3,402.90, silver gained 0.59% to $38.22, and copper edged up 0.06% to $9,834.55. Brent crude was flat at $66.15 after a prior drop, as rising U.S. crude stockpiles signaled the summer demand season’s end.

Technical Update:

On Tuesday, the S&P/TSX Composite Index rose 146.03 points, or 0.53%, to close at 27,921.26, driven by strong trading volumes and sustained investor confidence. The healthcare sector outperformed with a 3.46% gain, leading the market higher. Technically, the index remains well above its 21-period Simple Moving Average (SMA), reinforcing a positive short-term bias. The Relative Strength Index (RSI) stands at 66.15, reflecting solid momentum. The index is testing key support near 27,700, which will be crucial to maintain for the current bullish trend to persist. A decisive break below this level could trigger a pullback toward the next supports at 27,600 and 27,400, while sustained trade above these zones would be essential to preserve upward momentum in the days ahead.