Canadian stocks tick up slightly as the U.S. and Iran move toward a potential clash over the Strait of Hormuz.

Index Update:  Canadian stocks inched higher on Friday, with expectations of an end to the gulf crisis increasing ahead of tomorrow's U.S.-Iran talks. After opening below the previous week's close, today the benchmark S&P/TSX Composite Index gained ground gradually to trade positive later in the session before settling at 33,879.24, up by 183.48 points (or 0.54%).

Macro Update:  On the domestic front, Prime Minister Mark Carney's Liberal Party is predicted to gain a slim majority in the House of Commons in the three by-elections held today. Carney's party is holding 171 out of 343 seats in the House, statistically in need of just one seat for a majority. Aside from Statistics Canada's data on building permits indicating a fall of 8.40% month-over-month to C$12.1 billion in February, it was an uneventful day for Canada on the economic front. Last Friday's data on employment revealed that the economy modestly added jobs in March, edging up 14,000 (or 0.10%) reversing a two-month losing trend.

Top Movers:  Among the individual stocks, Tecsys Inc (6.39%), Constellation Software Inc (6.37%), Brookfield Corporation (3.27%), and Power Corporation of Canada (3.05%) were the prominent gainers.

Our Stance: Momentum remains steady, with the 14-period RSI around 63.03, indicating further upside potential without entering overbought territory. However, the broader structure still reflects a consolidation phase, with no decisive breakout yet. Immediate support is seen near 33,700; a sustained break below this level could weaken sentiment and expose the index to downside risk toward the 33,300 zone.

Commodity Update:  Asian stocks moved higher on Tuesday, while oil prices and the safe-haven U.S. dollar weakened after Washington said it remained engaged with Tehran despite blocking Iran’s ports following failed peace talks. Gold rose 0.49% to USD 4,790.90 per ounce, silver gained 1.44% to USD 76.73, and copper added 0.24% to USD 13,048.00. Brent crude slipped 0.76% to USD 98.62 a barrel after briefly moving back above USD 100.00.

Technical Update:

On Monday, the S&P/TSX Composite Index advanced 183.48 points, or 0.54%, to close at 33,879.24, signalling a modest return of buying interest following recent volatility. From a technical standpoint, the index continues to trade above its 21-period Simple Moving Average (SMA), which is acting as dynamic support and helping to maintain a constructive near-term bias. Momentum remains steady, with the 14-period RSI around 63.03, indicating further upside potential without entering overbought territory. However, the broader structure still reflects a consolidation phase, with no decisive breakout yet. Immediate support is seen near 33,700; a sustained break below this level could weaken sentiment and expose the index to downside risk toward the 33,300 zone.