Canadian stocks shot up sharply on Friday

Index Update:  After opening above previous session's close, today the benchmark S&P/TSX Composite Index traded firmly positively throughout the session before settling at 32,470.98, up by 476.38 points (or 1.49%).

Macro Update: The second round of Russia-Ukraine peace talks also ended in Abu Dhabi without any development except for both nations agreeing to exchange prisoners of war. Data released by Statistics Canada today revealed that the unemployment rate in Canada fell to 6.5% in January (the lowest level in 16 months) from 6.8% in the previous month, against market expectations of 6.8%. Employment in Canada edged down by 0.1% or 25,000 jobs in January, against expectations of an increase of 7,000 jobs. For the same period, the labor force participation rate fell to 65%. Separately, the Ivey Business School's Purchasing Managers' Index slipped to 50.9 in January 2026 from 51.9 in December.

Top Movers:  Among the individual stocks, Discovery Silver Corp (9.54%), Endeavour Silver Corp (8.46%), Athabasca Oil Corp (6.03%), and Enerflex Ltd (5.91%) were the prominent gainers.

Our Stance:  Price action is consolidating near the important 32,800 support zone, and a sustained hold above this level would help preserve positive sentiment and the broader bullish bias. However, a decisive break below 32,400 could weaken near-term momentum and expose the index to a corrective pullback toward the 32,200–32,100 support area.

Commodity Update:  The Japanese yen strengthened in Asian trading on Monday after a decisive election victory lifted expectations of fiscal stimulus, snapping a six-day losing streak. Gold rose 1.19% to USD 5,038.90, silver jumped 5.09% to USD 80.92, and copper edged 0.01% higher to USD 13,052.00. Brent crude slipped 0.70% to USD 67.57 amid easing Middle East tensions, a resilient dollar, and caution ahead of key U.S. and China data.

Technical Update:

The S&P/TSX Composite Index advanced strongly on Friday, rising 476.38 points (+1.49%) to close at 32,470.38, supported by robust trading volumes that signal healthy investor participation and reinforce bullish momentum. Technically, the index continues to display a constructive structure, holding comfortably above its 50-period Simple Moving Average (SMA), which remains a key dynamic support for the prevailing uptrend. Momentum indicators are neutral-to-positive, with the 14-period Relative Strength Index (RSI) at 50.31, suggesting steady buying interest without overbought conditions. Price action is consolidating near the important 32,800 support zone, and a sustained hold above this level would help preserve positive sentiment and the broader bullish bias. However, a decisive break below 32,400 could weaken near-term momentum and expose the index to a corrective pullback toward the 32,200–32,100 support area.