Canadian stocks moved mostly lower

Index Update:  The benchmark S&P/TSX Composite Index slid 219.51 points or 0.7 percent to 31,263.93, closing lower for the third straight session after reaching a record closing high last Thursday. Substantial weakness among energy stocks weighed on Bay Street, with the S&P/TSX Capped Energy Index plunging by 3.7 percent.

Macro Update:  Concerns about the strength of the U.S. economy may also have generated some negative sentiment following the release of the Labor Department's report on employment in the month of November. While report showed stronger than expected job growth in November, the increase followed a notable loss of jobs in October. The report said non-farm payroll employment climbed by 64,000 jobs in November after tumbling by 105,000 jobs in October. Economists had expected employment to rise by 50,000 jobs. Meanwhile, the Labor Department said the unemployment rate rose to 4.6 percent in November from 4.4 percent in September. The unemployment rate was expected to tick up to 4.5 percent. With the bigger than expected increase, the unemployment rate reached its highest level since hitting 4.7 percent in September 2021

Top Movers:  Real estate stocks Granite Real Estate Investment, CDN Apartment, Colliers International Group, Allied Properties Real Estate Investment Trust, Dream Industries and Altus Group gained 1 to 1.7%.

Our Stance:  Momentum indicators remain supportive, with the RSI holding at 55.87, signaling sustained strength and keeping the trend within neutral-to-positive territory. On the downside, the 31,200 level serves as immediate support. A decisive break below this zone could invite further corrective pressure toward 31,000, with the next major support located near the 30,900 mark.

Commodity Update:   The U.S. dollar steadied on Wednesday, hovering near its lowest level since early October as soft labour market data kept investors cautious over the timing of the Federal Reserve’s next rate cut. Gold edged up 0.34% to USD 4,346.20, while silver jumped 4.05% to USD 65.85 and copper rose 0.43% to USD 11,679. Brent crude climbed 0.90% to USD 59.50 amid renewed geopolitical tensions linked to Venezuela. 

Technical Update:

The S&P/TSX Composite Index declined 219.51 points (−0.70%) on Tuesday to close at 31,263.93, as short-term profit-taking moderated the recent upside momentum. Despite this modest pullback, the broader technical outlook remains constructive. The index continues to trade comfortably above its 21-period Simple Moving Average (SMA), a key short-term trend support that reinforces the prevailing bullish bias. Momentum indicators remain supportive, with the RSI holding at 55.87, signaling sustained strength and keeping the trend within neutral-to-positive territory. On the downside, the 31,200 level serves as immediate support. A decisive break below this zone could invite further corrective pressure toward 31,000, with the next major support located near the 30,900 mark.