Canadian Stocks Slide as U.S.-Iran Tensions Weigh on Investor Sentiment

Index Update:

Canadian stocks declined sharply on Thursday, giving back much of the previous session’s gains as investors remained cautious amid uncertainty surrounding the Trump administration’s strategy to resolve the ongoing U.S.-Iran conflict. Broad-based selling across major sectors and weakness in technology stocks further pressured market sentiment. The benchmark S&P/TSX Composite index opened higher but lost momentum and traded in negative territory for the remaining session before settling at 35,605.27, down by 736.13 points (or 2.03%).

Macro Update:

China’s Trade Surplus reached 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 global Demand for high-tech products and AI-related infrastructure.

The Canadian dollar weakened to around 1.4064 per USD on November 6, 2026, retreating from its recent two-month high of 1.39 per USD. The USD/CAD Exchange Rate increased approximately 0.31% from the previous session, reflecting renewed pressure on the loonie.

The Yield on Canada’s 10-year government bond eased to 3.67% on November 5, 2026, marking a 0.03 percentage point decline from the previous session. The decrease reflected broader weakness in Global Bond yields amid cautious investor sentiment and renewed selling pressure in technology stocks.

Top Movers:

The best performers of the session on the S&P/TSX Composite were Labrador Iron Ore Royalty Corp (TSX:LIF), which rose 8.48% or 1.72 points to trade at 22.01 at the close. Meanwhile, Torex Gold Resources Inc (TSX:TXR) added 6.59% or 4.55 points to end at 73.56 and OceanaGold Corporation (TSX:OGC) was up 5.85% or 2.11 points to 38.15 in late trade.

Our Stance:

From a technical perspective, Immediate support is positioned near 35,300, which remains critical for sustaining the recovery. A sustained hold above this level could stabilize market sentiment and support an upside move towards 36,000. Conversely, a decisive break below 35,300 could weaken the technical structure and trigger renewed selling pressure.

Commodity Update:

The US dollar held steady against major currencies on Friday as a sharp selloff in US equities increased demand for safe-haven assets, including the Japanese yen, while Treasury yields declined ahead of the closely watched US payrolls report. Gold fell 0.91% to USD 4,076.20, silver declined 0.67% to USD 51.98, and copper slipped 0.18% to USD 13,777.00. Brent Crude gained 0.31% to USD 99.50 amid Middle East Supply disruption concerns.

Technical Update:

The S&P/TSX Composite Index declined 2.03% on Thursday to close at 35,605.27, reflecting renewed selling pressure. 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 46.70, indicating improving momentum, although the index remains below the neutral 50 level. Immediate support is positioned near 35,300, 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 35,300 could weaken the technical structure and trigger renewed selling pressure.