Canadian stocks moved lower on Thursday

Index Update:  The benchmark S&P/TSX Composite gained ground early in the session but then lost momentum and traded below the flatline before settling at 32,840.60, down by 279.23 points (or 0.84%).

Macro Update:  Carney is participating in a trilateral meeting between Prime Minister Jonas Gahr Store and German Chancellor Friedrich Merz tomorrow. Following this visit, Carney is scheduled to stop over in the U.K. to meet Prime Minister Keir Starmer. Data released by Statistics Canada today revealed that building permits in Canada surged by 4.8% month-over-month to C$13.3 billion in January, following a downwardly revised 6.1% advance in the prior month. While Canada's exports decreased 4.7% month over month to C$62.48 billion in January, imports decreased 1.1% month-on-month to C$66.1 billion in the same period.

Top Movers:  Among the individual stocks, Parex Resources Inc (3.63%), CND Natural Res (3.10%), Suncor Energy Inc (2.98%), and Capital Power Corporation (1.87%) were the prominent gainers.

Our Stance: Momentum indicators remain subdued, with the 14-period Relative Strength Index (RSI) hovering near 43.12, signalling mild negative momentum. On the downside, immediate support is seen around 32,500. A decisive break below this level could trigger additional consolidation toward the 32,200 zone in the near term. 

Commodity Update:  The U.S. dollar remained firm on Friday, heading toward its second weekly advance since tensions escalated in Iran, as global uncertainty supported demand for safe-haven assets. In commodities, gold slipped 0.22% to USD 5,114.70, silver declined 0.62% to USD 84.58, and copper eased 0.31% to USD 12,944.59. Meanwhile, Brent crude fell 0.71% to USD 99.75 after the U.S. granted a 30-day license allowing countries to purchase Russian oil shipments currently stranded at sea.

Technical Update:

The S&P/TSX Composite Index edged lower on Thursday, closing at 32,840.60, as short-term profit-taking temporarily paused the recent upward momentum. Despite the pullback, the broader market structure still points to a phase of healthy consolidation rather than a definitive trend reversal. From a technical perspective, the index continues to trade below its 50-period Simple Moving Average (SMA) on the daily chart, which is acting as a dynamic resistance level and reflects a cautious near-term outlook. Momentum indicators remain subdued, with the 14-period Relative Strength Index (RSI) hovering near 43.12, signalling mild negative momentum. On the downside, immediate support is seen around 32,500. A decisive break below this level could trigger additional consolidation toward the 32,200 zone in the near term.