Canadian Stocks Set A New Record

                                                          Source: Krish Capital Pty Ltd

Index Update:

Canadian stocks posted modest gains but scaled a new peak on Monday, continuing a rally triggered by the positivity gained from last week's central bank's rate cut which is seen as a support for an economy that has been hurt by US tariffs.

After opening just above the previous week's close, the benchmark S&P/TSX Composite Index saw further upside to reach an intraday high of 29,990.70 - a new record - and finally settle at 29,958.98, up by 190.62 points (or 0.64%).

Macro Update:

Data released by Statistics Canada today revealed that for the month of August, Canadian industrial producer prices rose 0.5% month-over-month and surged 4.0% year-over-year.

Last week, the Bank of Canada cut interest rates by 25 basis points to 2.5%, shedding inflation worries and focusing on unemployment.

Notably in August, the unemployment rate crawled up to 7.1%, with inflation clocking in at 1.9%.

Along with this, figures for Gross Domestic Product for July to be released by Statistics Canada on Friday remain in focus. Real Gross Domestic Product edged down 0.1% in June.

Top Movers:

Among the individual stocks, Endeavour Silver Corp (15.86%), First Majestic Silver Corp (14.24%), Seabridge Gold Inc (8.94%), Barrick Mining Corp (7.44%), and Paramount Resources Ltd (6.81%) were the prominent gainers.

Our Stance:

The index is currently consolidating around a key support zone near 29,700. Holding above this level will be crucial to sustaining confidence and the broader uptrend. A decisive breakdown below 29,700, however, could signal short-term bullish exhaustion and open the door for a pullback toward the next support levels at 29,500 and 29,300.

Commodity Update:

The U.S. dollar softened in early Asian trading on Tuesday as Federal Reserve comments guided focus toward upcoming core PCE data. Attention also centred on the global effects of President Trump’s economic policies. Gold gained 0.05% to $3,777.10, silver slipped 0.35% to $44.05, and copper eased 0.18% to $9,983.10. Brent crude fell 0.45% to $66.26, pressured by geopolitical tensions in the Middle East and Russia, alongside tariff concerns dampening fuel demand.

Technical Update:

On Monday, the S&P/TSX Composite Index gained 190.62 points (+0.64%) to close at 29,958.98. The advance was underpinned by strong trading volumes, underscoring sustained investor confidence and reinforcing the prevailing bullish momentum. From a technical standpoint, the index maintains a firm uptrend, trading comfortably above its 21-period SMA, which continues to serve as dynamic support. Momentum indicators remain robust, with the RSI at 82.18, highlighting persistent buying pressure and an overbought condition. The index is currently consolidating around a key support zone near 29,700. Holding above this level will be crucial to sustaining confidence and the broader uptrend. A decisive breakdown below 29,700, however, could signal short-term bullish exhaustion and open the door for a pullback toward the next support levels at 29,500 and 29,300.