Image Source : Krish Capital Pty Ltd

Index Update: The benchmark S&P/TSX Composite Index settled with a gain of 215.95 points or 0.85% at 25,658.86. The index scaled a low of 25,562.84 and a high of 25,720.63 intraday.

Macro Update: Trump said over the weekend that he would announce new 25% tariffs on all steel and aluminium imports, raising fears of a brewing global trade war and its potential impact on the global economy.

Canada is among the largest sources of U.S. steel imports, and is also a major supplier of primary aluminum to the U.S.

Top Movers: Newomont Corporation (NGT.TO), Parklans Corporation (PKI.TO), Mty Food Group (MTY.TO), Restaurant Brands International (QSR.TO), Nutrien (NTR.TO), Finning International (FTT.TO), Tourmaline Oil Corporation (TOU.TO), Kinaxis Inc (KXS.TO), Pan American Silver Corp (PAAS.TO) and Lundin Gold (LUG.TO) ended higher by 2.5 to 4%.

Our Stance: Technically, the index remains in a strong position, trading well above its 21-period Simple Moving Average (SMA), reinforcing the bullish trend. However, the index is now testing an important support level around 25,300. This level will be crucial for maintaining the upward trend. If the index manages to hold above this level, the bullish sentiment could remain intact, with further gains possible.

Commodity Update: Gold prices surged to a record high of $2,949.30, gaining 0.47% as investors reacted to U.S. President Donald Trump's decision to raise tariffs on metal imports. The dollar remained firm, bolstered by this move, contributing to market unease over escalating trade tensions. Trump increased steel and aluminium tariffs to 25%, positively impacting U.S. steelmaker stocks. A 10% tariff on Chinese imports took effect earlier, and China retaliated with duties on U.S. energy and goods. Meanwhile, commodities saw mixed results: silver dropped 0.43% to $32.35, copper fell 0.66% to $9,405.20, and Brent oil climbed 0.40% to $76.14.

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Technical Update: On Monday, the S&P/TSX Composite Index continued its positive momentum, advancing by 215.95 points to close at 25,658.86, reflecting a solid 0.85% gain. This upward movement was driven by robust trading volumes, underscoring sustained investor confidence in the market. A standout performer was the energy sector, which surged by 2.05%, reflecting growing optimism among investors in energy stocks. Technically, the index remains in a strong position, trading well above its 21-period Simple Moving Average (SMA), reinforcing the bullish trend. Additionally, the Relative Strength Index (RSI) sits at 66.08, indicating the market is in healthy territory still away from overbought conditions leaving room for more upside potential. However, the index is now testing an important support level around 25,300. This level will be crucial for maintaining the upward trend. If the index manages to hold above this level, the bullish sentiment could remain intact, with further gains possible. A break below 25,300, though, could signal a pullback, with key support zones identified at 25,100 and 24,800.

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