Canadian Stocks Rise Modestly

Image Source : Krish Capital Pty Ltd

Index Update:  After opening just, a little lower than the previous close, the benchmark S&P/TSX Composite Index swung back and forth across the unchanged line until noon before reaching an intraday high of 27,841.39 just past noon. The index remained in positive territory for the rest of the session before closing at 27,775.23, up by 16.55 points (or 0.06%).

Macro Update: Fortunately, around 85% of Canadian exports fall under the CUSMA and are tariff-free. However, a review of the CUSMA pact is scheduled for 2026 wherein Trump may put up a hard stance. Inflation data coming out tomorrow from the US could push the data-driven Fed to cut borrowing rates if the numbers are weaker-than-expected. Canadian June wholesale trade and manufacturing sales numbers set to come up this Friday are the only major heavy indicators for this week.

Top Movers:  Among the individual stocks, Bausch Health Companies (16.14%), Linamar Corp (1.48%), Rb Global Inc (3.02%), and Bird Construction (2.65%) were the prominent gainers. Constellation Software Inc (5.14%) and Goeasy Ltd (3.10%) were among the prime market-moving stocks.

Our Stance: The Relative Strength Index (RSI) sits at 63.36, reflecting solid momentum with scope for further gains. The index is currently testing a key support level near 27,500; holding this level is crucial to preserving the upward bias. A decisive break below could open the door to a retracement toward the next support zones at 27,300 and 27,100 on the daily chart.

Commodity Update:  The U.S. dollar held steady on Tuesday ahead of a key U.S. consumer inflation report that could influence Federal Reserve rate cut expectations. Gold eased 0.10% to $3,401.20, while silver rose 0.14% to $37.84 and copper gained 0.27% to $9,759.20. Brent crude added 0.39% to $66.89 as the U.S. and China extended a pause on higher tariffs, easing trade war concerns and supporting fuel demand in both economies.

Technical Update:

On Monday, the S&P/TSX Composite Index rose 16.55 points to close at 27,775.23, a gain of 0.06%, supported by strong trading volumes that underscored ongoing investor confidence. The healthcare sector was the standout performer, surging 10.87% on renewed optimism. Technically, the index maintains a bullish posture, trading well above its 21-period Simple Moving Average (SMA). The Relative Strength Index (RSI) sits at 63.36, reflecting solid momentum with scope for further gains. The index is currently testing a key support level near 27,500; holding this level is crucial to preserving the upward bias. A decisive break below could open the door to a retracement toward the next support zones at 27,300 and 27,100 on the daily chart.