Canadian stocks surged on Wednesday

index Update:

Canadian stocks rebounded strongly on Wednesday after Tuesday’s decline, amid reports that the U.S. and Iran are nearing an agreement to hold talks aimed at permanently ending the Gulf conflict.

After opening well above yesterday's close, today the benchmark S&P/TSX Composite Index traded positive throughout the rest of the session before settling at 33,981.82, up by 414.91 points (or 1.24%).

Macro Update:

Meanwhile, U.S. Secretary of State Marco Rubio affirmed that the military offensive on Iran has ended.

Axios reported that the U.S. and Iran are close to agreeing on a 14-point, one-page Memorandum of Understanding which would allow a 30-day time period to arrive at a framework for designing future negotiations. This report by Axios was later confirmed by Reuters.

Yesterday, data from Statistics Canada showed a 8.50% rise in total exports to $72.80 billion in March, the highest since January, which came after the Canadian economy sank into a $5.10 billion Trade Deficit in February, primarily due to exports of metallic and non-metallic mineral products. The Trade Surplus stood at $1.80 billion.

Top Movers:

Among the individual stocks, Sprott Inc (19.77%), Americas Gold and Silver Corporation (17.48%), Ssr Mining Inc (15.65%), Iamgold Corp (13.85%), Novagold Res Inc (13.68%), and Curaleaf Holdings Inc (9.51%) were the prominent gainers.

Our Stance:

Momentum indicators also remain constructive, with the 14-period Relative Strength Index (RSI) hovering near 56.26, signaling healthy bullish momentum. On the downside, immediate support is placed around the 33,800 mark. A decisive break below this level may trigger extended consolidation and could drag the index toward the 33,200 zone in the near term.

Commodity Update:  

Gold prices moved higher in Asian trading on Thursday after gaining nearly 3% in the previous session, supported by a weaker U.S. dollar and easing Inflation concerns tied to hopes of a potential U.S.-Iran peace agreement. Gold rose 0.41% to USD 4,714.40 per ounce, while silver advanced 1.32% to USD 78.30. Copper declined 0.43% to USD 13,356.90. Meanwhile, Brent Crude oil rebounded 0.90% to USD 102.15 per barrel after the previous session’s sharp decline.

Technical Update:

On Wednesday, the S&P/TSX Composite Index advanced by 414.91 points, or 1.24%, to close at 33,981.82, reflecting improved investor sentiment and renewed buying interest across key sectors. From a technical perspective, the index is trading above its 50-period Simple Moving Average (SMA) on the Daily Chart, which continues to act as a dynamic support level and reinforces the prevailing positive trend. Momentum indicators also remain constructive, with the 14-period Relative Strength Index (RSI) hovering near 56.26, signaling healthy bullish momentum. On the downside, immediate support is placed around the 33,800 mark. A decisive break below this level may trigger extended consolidation and could drag the index toward the 33,200 zone in the near term.