TSX Ends Marginally Down

Index Update: The Canadian stock market ended the shortened trading session on Wednesday on a slightly weak note. Trading volume was thin as traders largely stayed on the sidelines ahead of Christmas holidays.

The benchmark S&P/TSX Composite Index settled with a loss of 58.97 points or 0.18% at 31,999.76 after moving between 31,194.73 and 32,079.65.

The Canadian markets remained closed on Thursday and Friday, for Christmas and Boxing Day, respectively.

Macro Update: On the U.S. economic front, the Labor Department released a report showing first-time claims for U.S. unemployment benefits fell by more than expected in the week ended December 20th.

The report said initial jobless claims dipped to 214,000, a decrease of 10,000 from the previous week's unrevised level of 224,000. Economists had expected jobless claims to edge down to 223,000

Top Movers: Dream Office Real Estate Investment Trust, Canadian Utilities, Brookfield Business Corporation, Evertz Technologies, Ag Growth International, Brookfield Business Partners and Celestica gained 1.8 to 3%

Our Stance: Momentum indicators also remain supportive, with the Relative Strength Index (RSI) holding at 66.26, signaling sustained strength and keeping the trend within neutral-to-positive territory. On the downside, the 31,900 level stands as immediate support. A decisive break below this zone could invite further corrective pressure toward 31,700, while the next major support is positioned near 31,600.

Commodity Update: The yen recovered modestly on Monday after last week’s sharp decline, as markets reassessed the timing of further BoJ rate hikes and potential intervention risks amid thin year-end trading. In commodities, gold slipped 0.34% to USD 4,537.20, silver rose 1.30% to USD 78.203, and copper surged 6.32% to USD 12,883.00. Brent crude climbed 0.90% to USD 60.78, supported by renewed Middle East supply concerns and elevated geopolitical risk premiums, although uncertainty around Russia–Ukraine peace negotiations continues to cap upside momentum.

Technical Update:

The S&P/TSX Composite Index eased by 58.97 points (−0.18%) on Wednesday to close at 31,999.76, as short-term profit-taking capped the recent upside momentum. Despite this modest pullback, the broader technical structure remains constructive. The index continues to trade comfortably above its 21-period Simple Moving Average (SMA), which serves as a key short-term trend support and reinforces the prevailing bullish bias. Momentum indicators also remain supportive, with the Relative Strength Index (RSI) holding at 66.26, signaling sustained strength and keeping the trend within neutral-to-positive territory. On the downside, the 31,900 level stands as immediate support. A decisive break below this zone could invite further corrective pressure toward 31,700, while the next major support is positioned near 31,600.