Canadian stocks tumbled on Tuesday

Index Update:

Canadian stocks declined on Tuesday as postponed U.S.–Iran peace talks heightened fears of renewed escalation, with the two-week ceasefire in the Gulf conflict set to expire tomorrow night.

After opening a little lower than yesterday's close, today the benchmark S&P/TSX Composite Index  regained ground but lost the momentum to trade firmly negative before settling at 33,808.30, down by 551.73 points (or 1.61%).

Macro Update:

On the domestic front, with the joint review of the Canada-United States-Mexico Agreement (or CUSMA) coming up soon, Prime Minister Mark Carney announced a new Advisory Committee on Canada-U.S. economic relations that will include expert leaders from major sectors of the Canadian economy which will hold its first meeting on April 27.

Renewal of this high-stakes deal is crucial for Canada as it allows Canadian exporters (and Canadian economy) to bypass the heavy tariffs imposed by Trump on all Canadian exports to the U.S.

Top Movers:

Among the individual stocks, Athabasca Oil Corp (3.06%), Vermilion Energy Inc (3.01%), Baytex Energy Corp (2.95%), Cenovus Energy Inc (2.88%), and Empire Company Ltd (1.10%) were the prominent gainers.

Our Stance:

Momentum remains stable, with the 14-period RSI near 56.39, indicating steady strength while leaving room for further upside. However, the broader trend still points to consolidation, as price action lacks a decisive breakout. Immediate support is seen near 33,700, and a sustained break below this level could weaken sentiment and expose the index to a deeper pullback toward the 33,400 zone. 

Commodity Update:  

The dollar steadied in early Asian trading on Wednesday as doubts persisted over U.S. President Donald Trump’s announcement of an indefinite extension to the Iran ceasefire, supporting safe-haven demand and lifting the greenback to a one-week high. Gold climbed 1.15% to USD 4,773.05, while silver advanced 1.72% to USD 77.81. Copper edged up 0.12% to USD 13,242.50. Meanwhile, Brent crude slipped 0.20% to USD 98.21 per barrel in Asian trade.

Technical Update:

On Tuesday, the S&P/TSX Composite Index declined 551.73 points (1.61%) to close at 33,808.30, reflecting a negative trading session. From a technical perspective, the index continues to hold above its 21-period Simple Moving Average (SMA), which is acting as dynamic support and maintaining a constructive near-term bias. Momentum remains stable, with the 14-period RSI near 56.39, indicating steady strength while leaving room for further upside. However, the broader trend still points to consolidation, as price action lacks a decisive breakout. Immediate support is seen near 33,700, and a sustained break below this level could weaken sentiment and expose the index to a deeper pullback toward the 33,400 zone.