Canadian Stocks Surge as Falling Oil Prices Ease Inflation Concerns

Index Update:

Canadian stocks rallied on Monday, extending gains from the previous session as investors welcomed U.S. President Donald Trump's softer stance on Iran, which triggered a sharp decline in Crude Oil prices and eased Inflation concerns. Growing optimism surrounding a diplomatic resolution to the U.S.-Iran conflict, along with strong gains in materials and Mining stocks, further supported market sentiment. The benchmark S&P/TSX Composite index opened higher and traded firmly positive throughout the session before settling at 36,446.26, up by 657.17 points (or 1.84%).

Macro Update:

China’s Trade Surplus widened to USD 105.28 billion in October 2026, compared with USD 88.00 billion a year earlier, but fell short of market expectations of USD 125.8 billion. Exports surged 35.2% YoY to USD 412.33 billion, supported by strong global Demand for high-tech products and AI-related infrastructure, while imports increased 41.6% YoY to USD 307.05 billion.

The Canadian dollar traded near 1.41 per USD on November 10, 2026, remaining under pressure amid weaker domestic employment data and stronger U.S. labour market conditions.

The Yield on Canada’s 10-year government bond remained steady at 3.66% on November 9, 2026, unchanged from the previous session. The yield remained near its lowest level in two months as weaker Canadian employment data reinforced expectations of potential Monetary Policy easing, while demand for safe-haven Government Bonds continued to support bond prices.

Top Movers:

The best performers of the session on the S&P/TSX Composite were Hammond Power Solutions Inc (TSX:HPSa), which rose 10.55% or 19.83 points to trade at 207.75 at the close. Meanwhile, Energy Fuels Inc. (TSX:EFR) added 9.79% or 0.92 points to end at 10.32 and Silvercorp Metals Inc (TSX:SVM) was up 9.14% or 1.15 points to 13.73 in late trade.

Our Stance:

From a technical perspective, immediate support is positioned near 36,200, a critical level for sustaining the ongoing recovery. A sustained hold above this level could stabilise market sentiment and support further upside towards 36,700. Conversely, a decisive break below 36,200 could weaken the technical structure and trigger renewed selling pressure.

Commodity Update:

The US dollar held on to overnight losses on Tuesday as investors awaited US inflation data for clues on the Federal Reserve’s future Interest Rate path. Gold gained 0.21% to USD 4,122.75, while silver advanced 0.90% to USD 53.16. Copper edged up 0.02% to USD 13,905.20. Meanwhile, Brent Crude oil declined 0.75% to USD 91.88 as US President Donald Trump downplayed the possibility of military action against Iran, easing concerns over potential Middle East Supply disruptions.

Technical Update:

The S&P/TSX Composite Index gained 1.84% on Monday to close at 36,446.26, reflecting a positive shift in market sentiment. From a technical perspective, the index continues to trade above its 21-day Simple Moving Average (SMA), which acts as a key dynamic support level and reinforces the improving technical structure. The 14-day Relative Strength Index (RSI) stands at 56.19, indicating strengthening positive momentum. Immediate support is positioned near 36,200, a critical level for sustaining the ongoing recovery. A sustained hold above this level could stabilise market sentiment and support further upside towards 36,700. Conversely, a decisive break below 36,200 could weaken the technical structure and trigger renewed selling pressure. Overall, the near-term outlook remains cautiously positive as long as the index holds above key support.