Image Souce: Krish Capital Pty Ltd

Index Update:  The benchmark S&P/TSX Composite Index climbed to 24,365.11 by late morning, but pared a substantial portion of its gains as the day progressed and eventually closed up 98.29 points or 0.41% at 24,255.16. The index recorded a weekly loss of 0.85%.

Macro Update: A report from S&P Global said that its Canada Manufacturing PMI rose to 51.1 in October from 50.4 in the previous month, marking the second consecutive expansion in the nation's factory activity after 17 consecutive monthly contractions.

Top Movers: Fairfax Financial Holdings (FFH.TO) jumped more than 9%, Kinaxis Inc (KXS.TO) gained about 7.4% and Dayforce (DAY.TO) gained 7.3%. Docebo Inc (DCBO.TO) and Magna International (MG.TO) both ended higher by about 6.5%.

Our Stance: Currently, the index is testing a crucial support level around 23,450. Maintaining this support is vital for sustaining upward momentum; a fall below could trigger a pullback, with key support levels identified between 23,000 and 22,560. For continued growth, it is essential for the index to remain above these levels.

Commodity Update: The dollar weakened in Asia on Monday as investors prepared for potential shifts in the global economy with the upcoming U.S. elections and anticipated interest rate cuts. This could significantly impact bond yields. In commodities, gold dipped 0.02% to $2,748.50 per ounce, while silver fell 0.06% to $32.65. Conversely, copper rose 0.54% to $9,601.50 per ton. Brent crude futures increased by 1.5% to $74.23 a barrel after OPEC+ announced a delay in a planned output hike, citing weak demand pressures. Investors are now focused on the election for further insights this week.

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Technical Update: On Friday, the S&P/TSX Composite Index rose by 98.29 points, closing at 24,255.16—a 0.41% increase reflecting strong investor confidence and robust trading activity. The technology sector played a significant role in this uptick, gaining 1.25%, fueled by optimism in tech stocks. From a technical perspective, the index is comfortably above its 50-period Simple Moving Average (SMA), signaling a bullish trend. The Relative Strength Index (RSI) is at 49.54, indicating that while the market is healthy, it is not yet overbought, allowing room for further upside. Currently, the index is testing a crucial support level around 23,450. Maintaining this support is vital for sustaining upward momentum; a fall below could trigger a pullback, with key support levels identified between 23,000 and 22,560. For continued growth, it is essential for the index to remain above these levels.

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