The Canadian market settled flat on Thursday

Image Source : Krish Capital Pty Ltd

Index Update: The Canadian market ended flat on Thursday as investors weighed the effects of US President Donald Trump's 25% tariffs on imported autos, which go into effect on April 3rd, and the expected announcement on reciprocal tariffs. The benchmark S&P/TSX Composite Index settled at 25,161.06, exactly at the previous session's closing figure. The index dropped to a low of 25,023.79 in early trades, and despite recovering to 25,205.59 by mid-morning, struggled to move higher.

Macro Update: Data from Statistics Canada said average weekly earnings of non-farm payroll employees in Canada rose by 5.5% year-on-year to $1,294.26 in January 2025, following a 5.9% year-over-year increase in December.

Top Movers: Tilray climbed about 7.5%. Pet Valu Holdings, Iamgold Corp, Seabridge Gold, New Gold, Wesdome Gold Mines, Sandstorm Gold, Alamos Gold, Equinox Gold, Agnico Eagle Mines, SSR Mining, MAG Silver, Endeavour Silver, Aya Gold & Silver and B2Gold Corp gained 3 to 6%

Our Stance: Currently, the index is testing a crucial support level of around 25,000. Maintaining this level is vital to sustaining the upward momentum. A breakdown below this threshold could trigger a retracement, with key weekly support levels identified between 24,700 and 24,500.

Commodity Update: The dollar dropped from a three-week high on Friday, while gold surged to a record high on Thursday, driven by new tariffs from President Trump's administration, expanding the trade war to autos. The tariffs sparked uncertainty in global markets, raising concerns about their impact on the economy and delaying potential Federal Reserve rate cuts. In commodities, gold rose 0.68% to $3,111.80, silver climbed 0.60% to $35.29, and copper fell 0.42% to $9,815.45. Brent oil held steady at $74.00 per barrel, maintaining a one-month high as investors prepared for U.S. reciprocal tariffs set to start next week.

Technical Update: On Thursday, the S&P/TSX Composite Index closed unchanged at 25,161.06. The healthcare sector was a key driver of the day's performance, rising by 2.24% and reflecting increased investor confidence in the sector. From a technical perspective, the index remains above its 21-period Simple Moving Average (SMA), reinforcing a bullish outlook. The Relative Strength Index (RSI) stands at 53.45, indicating market strength while still allowing room for further gains before reaching overbought conditions. Currently, the index is testing a crucial support level of around 25,000. Maintaining this level is vital to sustaining the upward momentum. A breakdown below this threshold could trigger a retracement, with key weekly support levels identified between 24,700 and 24,500. Holding above these levels is essential for preserving the bullish trend and unlocking further growth opportunities.