Canadian stocks moved lower on Friday

Index Update:  After opening above yesterday's close, the benchmark S&P/TSX Composite Index gained ground in the early hours of trading before turning lower and trading below the flatline throughout the rest of the session. The index closed at 31,311.41, down by 166.16 points (or 0.53%).

Macro Update:  Data released by Statistics Canada revealed that the unemployment rate fell to 6.5% in November from 6.9% in October (the lowest in 16 months), contrasting sharply with expectations that it would rise to 7%. In addition, Canada's employment rose by 54,000 jobs (or 0.3%) in November following an increase of 66,600 jobs in October, better than market estimates of a loss of 5,000 jobs. Canada's average hourly wages for permanent workers rose 4% year-on-year to C$38.02 in November. These higher numbers have dampened expectations of another rate cut by the Bank of Canada despite the job gains predominantly being in part-time sector.

Top Movers:  Among the individual stocks, TD Bank (1.76%), Bank of Nova Scotia (0.95%), Bank of Montreal (0.80%), Aritzia Inc (1.81%), and Restaurant Brands International Inc (1.29%) were the prominent gainers.

Our Stance:  The RSI reading of 61.19 reflects steady underlying momentum, keeping the trend in the neutral-to-positive zone. On the downside, 31,200 stands out as the first line of defense. A confirmed breakdown below this level may trigger additional weakness toward 31,000 followed by 30,900.

Commodity Update:  The U.S. dollar steadied on Monday after two weeks of selling as markets await a heavy week of central bank meetings, led by the U.S. Federal Reserve, where an interest rate cut is largely priced in despite a split committee. Australia, Brazil, Canada and Switzerland are expected to hold policy unchanged. Gold fell 0.13% to USD 4,237.30, silver 1.32% to USD 58.28, copper 0.12% to USD 11,627.00, while Brent edged up 0.06% to USD 63.79 on growth hopes and supply risks.

Technical Update:

The S&P/TSX Composite Index slipped 166.10 points (−0.53%) on Friday to settle at 31,311.41, as short-term profit-booking capped recent gains. Despite the modest pullback, the overall technical bias remains positive, with the index holding firmly above its 21-period SMA, a key short-term trend support. Maintaining trade above this moving average continues to validate the bullish undertone. The RSI reading of 61.19 reflects steady underlying momentum, keeping the trend in the neutral-to-positive zone. On the downside, 31,200 stands out as the first line of defense. A confirmed breakdown below this level may trigger additional weakness toward 31,000 followed by 30,900.