Canadian Stocks Rebound as Weak Jobs Data Eases Rate Hike Concerns

Index Update:

Canadian stocks advanced on Friday, recovering some of the previous session’s losses as weaker-than-expected employment data reduced expectations of another Bank of Canada Interest Rate hike in December. The economy shed 4,700 jobs in October, while diplomatic efforts by Qatar to ease U.S.-Iran tensions further supported investor sentiment. The benchmark S&P/TSX Composite index opened lower but gained momentum and traded positively throughout the remainder of the session before settling at 35,789.09, up by 183.82 points (or 0.52%).

Macro Update:

China’s Trade Surplus widened to USD 133.53 billion in September 2026, compared with USD 88.72 billion a year earlier, exceeding market expectations of USD 118.1 billion. Exports surged 36.3% YoY to USD 447.18 billion, supported by strong Demand for high-tech products and AI-related infrastructure, while imports increased 31% YoY to USD 313.66 billion.

The Canadian dollar traded near 1.41 per USD on November 9, 2026, as weaker-than-expected domestic employment data weighed on the loonie. The USD/CAD Exchange Rate eased to around 1.4086, down approximately 0.30% from the previous session, while stronger U.S. employment figures supported the greenback.

The Yield on Canada’s 10-year government bond eased to 3.66% on November 6, 2026, marking a 0.01 percentage point decline from the previous session. The decrease reflected weaker Canadian employment data and increased demand for safe-haven Government Bonds amid broader global Equity market volatility.

Top Movers:

The best performers of the session on the S&P/TSX Composite were Perpetua Resources Corp (TSX:PPTA), which rose 17.69% or 4.16 points to trade at 27.67 at the close. Meanwhile, 5N Plus Inc. (TSX:VNP) added 8.29% or 2.54 points to end at 33.19 and Denison Mines Corp (TSX:DML) was up 7.76% or 0.23 points to 3.13 in late trade.

Our Stance:

From a technical perspective, Immediate support is positioned near 35,500, which remains critical for sustaining the recovery. A sustained hold above this level could stabilise market sentiment and support an upside move towards 36,000. Conversely, a decisive break below 35,500 could weaken the technical structure and trigger renewed selling pressure.

Commodity Update:

The US dollar remained near a 1.5-year high against the euro and a seven-month high against the Australian dollar on Monday, following Friday’s sharp rally after stronger-than-expected US jobs data reinforced expectations of higher interest rates. Meanwhile, gold gained 1.30% to USD 4,128.20, silver advanced 2.10% to USD 53.02, and copper rose 0.86% to USD 13,876.00. Brent Crude declined 0.75% to USD 97.58 amid easing Middle East tensions and hopes of progress in US-Iran talks.

Technical Update:

The S&P/TSX Composite Index gained 0.52% on Friday to close at 35,789.09. From a technical perspective, the index continues to trade below its 21-day Simple Moving Average (SMA), which acts as a key dynamic resistance level and may restrict near-term recovery attempts. The 14-day Relative Strength Index (RSI) stands at 48.98, indicating improving momentum, although the index remains below the neutral 50 level. Immediate support is positioned near 35,500, which remains critical for sustaining the recovery. A sustained hold above this level could stabilise market sentiment and support an upside move towards 36,000. Conversely, a decisive break below 35,500 could weaken the technical structure and trigger renewed selling pressure.