Canadian stocks surged on Wednesday

Index Update: Canadian stocks climbed sharply on Wednesday, building on gains from the prior two sessions, as reports that the U.S. had presented a 15-point peace proposal to Iran boosted hopes that the ongoing Middle East conflict may be nearing a resolution. After opening higher than yesterday's close, today the benchmark  S&P/TSX Composite Index traded firmly positive throughout the session before settling at 32,382.60, up by 441.01 points (or 1.38%).

Macro Update: On March 18, Bank of Canada held on the interest rates at the current level at 2.25%, citing inflationary concerns. The central bank acknowledged that skyrocketing oil prices has made it difficult to predict the economy's trajectory.

Top Movers: Among the individual stocks, Boralex Inc (10.97%), Ssr Mining Inc (7.08%), G Mining Ventures Corp (7.03%), Ngex Minerals Ltd (6.68%), Silvercorp Metals Inc (6.49%), and Brookfield Business Partners LP (6.79%) were the prominent gainers.

Our Stance: Momentum indicators also remain subdued, with the 14-period Relative Strength Index (RSI) around 45.43, suggesting mild negative momentum. On the downside, immediate support is seen near 32,100; a break below this level could lead to further consolidation toward the 31,800 zone in the near term.

Commodity Update: The U.S. dollar held firm in early Asian trading on Thursday as investors awaited clarity on potential de-escalation in the U.S.-Israel-Iran tensions and adjusted expectations around the Federal Reserve’s next policy move. Gold declined 0.86% to USD 4,546.40, silver dropped 1.34% to USD 71.67, and copper slipped 1.19% to USD 12,202.40. Meanwhile, Brent crude rose 0.80% to USD 103.02 amid ongoing geopolitical uncertainty.

Technical Update:

On Wednesday, the S&P/TSX Composite Index gained 441.01 points (1.38%) to close at 32,382.60. Despite the recent pullback, the broader market structure continues to indicate a phase of healthy consolidation rather than a clear trend reversal. From a technical perspective, the index remains below its 50-period Simple Moving Average (SMA) on the daily chart, which is acting as dynamic resistance and pointing to a cautious near-term outlook. Momentum indicators also remain subdued, with the 14-period Relative Strength Index (RSI) around 45.43, suggesting mild negative momentum. On the downside, immediate support is seen near 32,100; a break below this level could lead to further consolidation toward the 31,800 zone in the near term.