Canadian stocks slid on Tuesday

index Update:

Canadian stocks declined on Tuesday as delays in a U.S.-Iran peace agreement sustained geopolitical tensions, while investor attention remained on U.S. efforts to release vessels stranded in the Strait of Hormuz.

After opening below yesterday's close, today the benchmark S&P/TSX Composite Index gained ground earlier but lost momentum and traded lower through the session before settling at 33,566.91, down by 71.96 points (or 0.21%).

Macro Update:

Data released by Statistics Canada today revealed a Trade Surplus of C$1.80 billion in March compared to the downwardly revised Trade Deficit of C$5.10 billion in February.

While exports rose 8.50% month-on-month to C$72.80 billion in March, imports fell 1.60% month-on-month to C$72.80 billion in March 2026 with declines in 8 of 11 product categories.

The S&P Global Canada Composite Purchasing Managers' Index rose to 49.90 in April from 47.60 in March, nearing the neutral 50 threshold and signalling a stabilization in Business activity.

S&P Global Services PMI rose to 49.20 in April from 47.20 in March but remained below the 50.00 threshold for the sixth straight month.

Top Movers:

Among the individual stocks, Curaleaf Holdings Inc (6.29%), Gildan Activewear Inc (2.99%), Restaurant Brands International Inc (2.15%), and Parex Resources Inc (4.95%) were the prominent gainers.

Our Stance:

The broader setup points to a consolidation phase, as the index remains range-bound without a clear breakout trigger. Immediate support is seen near 33,500; a sustained break below this level could weaken sentiment and expose the index to a deeper pullback toward the 33,200 zone, while holding above it may keep consolidation intact. 

Commodity Update:  

Gold prices advanced in Asian trading on Wednesday as a weaker U.S. dollar and softer Crude Oil prices supported safe-haven Demand. Gold climbed 1.94% to USD 4,657.00 per ounce, while silver surged 3.27% to USD 75.98 per ounce. Copper also gained 1.45% to USD 13,285.90 per ton, reflecting improved risk appetite in industrial metals. Meanwhile, Brent Crude declined 1.38% to USD 108.35 per barrel after optimism grew that Middle East oil supplies could stabilize amid potential progress toward a U.S.-brokered Iran peace agreement.

Technical Update:

The S&P/TSX Composite Index declined by 71.96 points (0.21%) on Tuesday to close at 33,566.91, indicating a mildly negative undertone. From a technical perspective, the index continues to trade below its 21-period SMA, which is acting as dynamic resistance and capping near-term upside potential. Momentum remains neutral, with the 14-period RSI hovering around 49.87, suggesting a lack of strong directional conviction. The broader setup points to a consolidation phase, as the index remains range-bound without a clear breakout trigger. Immediate support is seen near 33,500; a sustained break below this level could weaken sentiment and expose the index to a deeper pullback toward the 33,200 zone, while holding above it may keep consolidation intact.