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Index Update:  Opening just below yesterday's close, the benchmark S&P/TSX Composite Index swung today for the most part when it reached an intra-day high of 27,462.75 by mid-afternoon. Travelling lower from there, it finally settled at a fresh record high of 27,416.41, up by 51.98 (or 0.19%).

Macro Update:  US President Donald Trump announced a trade pact between the US and Japan under which Japanese imports will face 15% tariff against the earlier said 25%. With around 75% of the country's exports going to the US, Canadian export sectors today reverberated with this development. Trump has already imposed a blanket 25% tariff on imports of certain Canadian goods as well as a 50% tariff on aluminium and steel imports. As of now, Canadian imports to the US will suffer 35% tax if both countries do not reach a deal before the deadline. Today, the data released by Statistics Canada revealed that new home prices in Canada fell 0.2% in June, marking the third consecutive monthly decline. Bank of Canada is likely to keep the borrowing costs untouched based on this report as well as last week's decent economic data.

Top Movers:  Among the individual stocks, Magna International Inc (3.62%), Brp Inc (3.42%), Linamar Corp (3.16%), and Celestica Inc (7.52%) were the prominent gainers.

Our Stance:  The index is currently testing critical support near 27,100. Maintaining this level is important to uphold the current bullish trend. A break below could open the door for a pullback toward the next support zones around 26,800 and 26,600. Sustained trading above these levels will be vital for preserving upward momentum in the sessions ahead.

Commodity Update:  The euro edged closer to a four-year high Thursday amid optimism over U.S.-EU trade talks. The yen held firm as markets reacted positively to signs of easing trade tensions. Gold dipped 0.26% to $3,388.95, while silver fell 0.43% to $39.33. Copper rose slightly by 0.13% to $9,942.95. Brent crude gained 0.40% to $68.75, supported by trade optimism and a sharper-than-expected drop in U.S. crude inventories.

Technical Update: 

On Wednesday, the S&P/TSX Composite Index climbed 51.98 points to close at 27,415.41, marking a gain of 0.19%. The advance reflects sustained investor confidence, supported by strong trading volumes, with the healthcare sector leading the way with a notable 1.12% increase. Technically, the index remains comfortably above its 21-period Simple Moving Average (SMA), underscoring a positive short-term outlook. The Relative Strength Index (RSI) is at 70.30, highlighting strong momentum but also signaling overbought conditions. The index is currently testing critical support near 27,100. Maintaining this level is important to uphold the current bullish trend. A break below could open the door for a pullback toward the next support zones around 26,800 and 26,600. Sustained trading above these levels will be vital for preserving upward momentum in the sessions ahead.