Canadian stocks stood marginal higher on Tuesday

Index Update:  After opening well above last week's close, the benchmark S&P/TSX Composite Index traded firmly positively before finally closing at 30,409.25, up by 92.62 points (or 0.31%).

Macro Update:  Recently, U.S. President Donald Trump halted all trade talks with Canada, angered by an advertisement from Canada that apparently mocked Trump's tariffs. Last Friday, while addressing a business audience in Toronto, Carney stated that the negotiations would resume without giving many details about when and where. On the economic front in Canada, the day was largely uneventful except for the Bank of Canada Market Participants Survey which revealed that the participants believed that the central bank's main interest rate (now at 2.25%) will remain at that level until mid-2027. They also believed that BoC will raise rates starting third quarter of 2027 to 2.5%.

Top Movers:  Among the individual stocks, Discovery Silver Corp (14.08%), Aris Gold Corporation (9.33%), Endeavour Silver Corp (9.30%), Orla Mining Ltd (7.60%), Curaleaf Holdings Inc (11.29%), Celestica Inc Sv (6.95%), and Shopify Inc (3.95%) were the prominent gainers.

Our Stance:  At present, the index is consolidating near a crucial support zone around 30,300. Holding above this level will be vital to sustain positive sentiment and preserve the broader upward trajectory, while a decisive break below it could signal weakening momentum and trigger a potential pullback toward 30,100 and 29,900.

Commodity Update:   The dollar slipped on Wednesday after weak U.S. private-sector jobs data heightened concerns about labor market health. Investors awaited the expected reopening of the U.S. government, which could trigger a flood of delayed economic reports. Gold rose 0.37% to USD 4,131.40 per ounce, silver gained 0.75% to USD 51.12, and copper inched up 0.02% to USD 10,834.20. Brent crude eased 0.20% to USD 65.04 amid hopes of a shutdown resolution.

Technical Update:

On Tuesday, the S&P/TSX Composite Index rose by 92.62 points, or 0.31%, to settle at 30,409.25. The advance was accompanied by strong trading volumes, reflecting sustained investor confidence and reinforcing the ongoing bullish momentum. Technically, the index remains in a well-established uptrend, trading comfortably above its 21-period Simple Moving Average (SMA), which continues to act as a key dynamic support. Momentum indicators also suggest a constructive setup, with the 14-period Relative Strength Index (RSI) reading at 56.38, indicating steady buying interest. At present, the index is consolidating near a crucial support zone around 30,300. Holding above this level will be vital to sustain positive sentiment and preserve the broader upward trajectory, while a decisive break below it could signal weakening momentum and trigger a potential pullback toward 30,100 and 29,900.