Canadian stocks posted incremental gains on Tuesday

Index Update: After opening a little lower than yesterday's close, today the benchmark S&P/TSX Composite Index remained volatile throughout the session before ending at 33,096.40, up by 3.08 points (or 0.01%).

Macro Update: The Bank of Canada is set to announce its interest rate decision tomorrow morning. Economists and various surveys predict that the central bank is likely to hold rates at the current 2.25% level. In October 2025, the BoC had indicated that rates were at the right level and admitted that it does not have the tools to shield the economy from the impacts due to U.S. tariffs. A recent survey of businesses and consumers by the BoC revealed that business sentiment of Canadian companies remained subdued amid tariff tensions, while consumers were worried about their jobs and debt repayments. Data released by Statistics Canada today revealed that the preliminary numbers on wholesale sales showed an increase of 2.1% for December after declining by 1.8% a month earlier. The U.S. Federal Reserve is also slated to announce its monetary policy decision tomorrow afternoon.

Top Movers: Among the individual stocks, Tamarack Valley Energy Ltd (5.20%), Parex Resources Inc (5.13%), International Petroleum Corp (4.50%), Transalta Corp (6.36%), and Novagold Res Inc (11.45%) were the prominent gainers.

Our Stance: Price action is consolidating near the critical 33,000 support zone; maintaining this level is crucial to preserving the broader bullish bias, while a decisive break below could open the door to a corrective move toward 32,800–32,600.

Commodity Update: The U.S. dollar hovered near four-year lows on Wednesday, facing a growing crisis of confidence after President Donald Trump downplayed its recent weakness, which accelerated selling pressure and boosted the yen, euro, and sterling. Gold surged 3.07% to USD 5,277.10, silver jumped 8.69% to USD 115.12, and copper rose 1.35% to USD 13,205.40. Brent crude gained 0.10% to USD 67.66, supported by tighter U.S. supplies amid extreme cold.

Technical Update:

The S&P/TSX Composite Index recorded modest gains on Tuesday, rising 3.08 points (+0.01%) to close at 33,096.40, supported by healthy trading volumes that highlight strong investor participation and reinforce the ongoing bullish momentum. From a technical perspective, the index continues to trade above its 50-period Simple Moving Average (SMA), which serves as a key dynamic support for the current uptrend. Momentum indicators remain constructive, with the 14-period Relative Strength Index (RSI) at 67.58, signaling sustained buying interest while staying below overbought levels. Price action is consolidating near the critical 33,000 support zone; maintaining this level is crucial to preserving the broader bullish bias, while a decisive break below could open the door to a corrective move toward 32,800–32,600.