Canadian stocks moved Moderately Higher on Friday

Image Source : Krish Capital Pty Ltd

Index Update: The S&P/TSX Composite Index rose 0.41% to close at 25,357.74 on Friday, securing the Toronto exchange a weekly gain of 1.3%, primarily driven by elevated commodity prices that provided strong support to the resource-intensive index. This upward movement on the Canadian markets indicates underlying market optimism. However, it also underscored the cautious sentiment prevalent among both listed entities and investors as they navigated the complexities arising from ongoing tariff discussions and recent macroeconomic data signalling persistent inflationary pressures.

Macro Update: Statistics Canada reported 7,400 new jobs in April alongside a modest uptick in the unemployment rate to 6.9%, suggesting consumer spending capacity remains intact despite job losses in manufacturing, pressured by US import tariffs. On the global stage, investor confidence received a boost following President Trump's announcement of a trade accord between the United States and the United Kingdom. This development alleviated some concerns surrounding international trade frictions, providing positive momentum to equity markets across both North America and Asia. Furthermore, U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer indicated "substantial progress" in the recent US-China trade negotiations, raising hopes for a potential de-escalation of the ongoing trade dispute between the two economic powerhouses

Top Movers and Losers: The biggest gainers of the session on the S&P/TSX Composite were Air Canada (TSX: AC), which rose 14.64%. Lundin Gold Inc (TSX: LUG) added 14.14% and NFI Group Inc (TSX: NFI) was up 12.79%. Biggest losers included Pembina Pipeline Corp (TSX: PPL), which fell 5.85%. Ngex Minerals Ltd (TSX: NGEX) declined 4.56% and Trisura Group Ltd (TSX: TSU) down 4.12%.

Our Stance: The index rose above its 21-period Simple Moving Average (SMA), suggesting continued upward momentum and a prevailing bullish trend. The Relative Strength Index (RSI) stands at 63.21, indicating healthy buying interest without yet entering overbought territory. A key support level remains at 25,000 a critical horizontal trendline that could act as a foundation for price stability.

Commodity Update: The dollar rose in early Asian trading on Monday after U.S.-China talks eased trade war fears. Gold dropped 2.03% to $3,275.60, silver slipped 0.37% to $32.79, while copper gained 0.55% to $9,500.10. Brent crude increased 0.20% to $64.09, extending last week’s rally. Investors welcomed the trade deal news but stayed cautious, awaiting more details on the agreement and developments in global geopolitical tensions.

Technical Update: The S&P/TSX Composite Index registered a solid advance on Friday, climbing 103.68 points, or 0.41%, to settle at 25,357.74. The gain was backed by strong trading volumes, reflecting sustained investor optimism. The energy sector led the gains with a 1.95% increase, highlighting renewed confidence in economically sensitive industries. Technically, the index is trading above its 21-period Simple Moving Average (SMA), suggesting continued upward momentum and a prevailing bullish trend. The Relative Strength Index (RSI) stands at 63.21, indicating healthy buying interest without yet entering overbought territory. A key support level remains at 25,000 a critical horizontal trendline that could act as a foundation for price stability. Holding above this level may encourage further consolidation or continued gains. However, a decisive break below 25,000 could shift sentiment and trigger deeper losses, with the next downside targets at 24,700 and 24,500.