Canadian stocks moved lower on Thursday after technology stocks tumbled

Index Update:  After opening higher than yesterday's close, today the benchmark S&P/TSX Composite Index gave ground early in the session to trade negative through the rest of the session before settling at 33,016.13, down by 159.94 points (or 0.48%).

Macro Update: Data released by Statistics Canada today revealed that Canadian imports edged down 0.1% month-over-month to C$66.14 billion in November 2025. Exports fell 2.8% month-over-month to C$63.9 billion in November following strong gains in September and October. Yesterday, the Bank of Canada held interest rates steady at 2.25%. The central bank also downgraded its economic growth outlook for 2026 to 1.1% expecting only modest growth and 1.5% for 2027. In a Reuters interview after the announcement, BoC Governor Tiff Macklem warned that the Canadian economy faces an exceptionally high risk of a "new" shock with geopolitical risks increasing. In the U.S., a partial government shutdown threat is looming with current funding to expire by midnight tomorrow. Leaders of both parties are engaged in hectic parleys to extend government funding.

Top Movers:  Among the individual stocks, Athabasca Oil Corp (4.40%), International Petroleum Corp (3.66%), Ces Energy Solutions Corp (3.26%), and Rogers Communications Inc (5.69%) were the prominent gainers.

Our Stance:  Momentum indicators remain positive, with the 14-period Relative Strength Index (RSI) at 63.79. Immediate support is seen at 33,000, with a further corrective move toward 32,700 possible if breached. Overall, the TSX maintains its positive structure, and the current dip is viewed as a normal pause within an upward trend.

Commodity Update:  The U.S. dollar was set for a second consecutive weekly decline on Friday, as fresh tariff threats against countries trading with Cuba heightened global uncertainty and weighed on demand for U.S. assets. Commodities weakened, with gold down 1.60% to USD 5,269.00, silver lower by 2.36% to USD 111.65, and copper sliding 2.84% to USD 13,370.00. Meanwhile, Brent crude eased 0.20% to USD 70.50, despite rising Middle East tensions linked to a potential U.S. strike on Iran, a key OPEC producer.

Technical Update:

The S&P/TSX Composite Index declined 159.94 points (−0.48%) on Thursday to close at 33,016.13, as short-term profit-taking moderated recent gains. Despite the minor pullback, the broader technical structure remains constructive, suggesting healthy consolidation rather than a trend reversal. The index continues to trade above its 21-period Simple Moving Average (SMA), which acts as a key dynamic support, reinforcing the ongoing bullish trend. Momentum indicators remain positive, with the 14-period Relative Strength Index (RSI) at 63.79. Immediate support is seen at 33,000, with a further corrective move toward 32,700 possible if breached. Overall, the TSX maintains its positive structure, and the current dip is viewed as a normal pause within an upward trend.