Canadian Stocks Stage Strong Rebound After Recent Weakness

The Canadian stock market experienced a strong rebound on Friday, with the S&P/TSX Composite Index climbing 347.89 points, or 1%, to close at 35,502.65. This recovery followed a period of decline, marking the index’s highest close in over two months.

Prime Minister Carney announced plans to expedite approval for a crude oil export pipeline to the West Coast, aiming to reduce Canada’s economic reliance on the U.S. Meanwhile, the Canadian dollar weakened to around 1.42 per U.S. dollar, its lowest level in 12 weeks, due to sluggish domestic growth and a stronger U.S. dollar. August’s real GDP showed a modest 0.2% increase, with gains in mining and retail trade offset by declines in oil and gas extraction.

The U.S. nonfarm payrolls report for September is expected to show 89,000 new jobs, down from 162,000 in August, with the unemployment rate projected to hold steady at 4.1%. Strong labor market data could influence the Federal Reserve’s decision to raise interest rates further, despite inflation already exceeding the 2% target. The Fed’s last rate hike, in August, was the first in nearly three years.

Top performers on the S&P/TSX Composite included Trekor Metals Limited (TSX:TKO), which surged 7.32% to 12.76, Ero Copper Corp (TSX:ERO), up 6.50% to 54.05, and Teck Resources Ltd Class B (TSX:TECKb), rising 5.34% to 97.76.

Technically, the index remains below its 21-day Simple Moving Average, signaling continued weakness. The 14-day Relative Strength Index stands at 44.86, indicating subdued buying interest. Immediate support is near 35,300, with potential for recovery toward the recent high of 35,800 if the level holds.

Commodities saw mixed movements, with gold gaining 0.10% to USD 4,169.70, silver rising 1.51% to USD 61.32, and copper edging up 0.09% to USD 14,284.80. Brent crude oil dropped 0.70% to USD 101.58 amid easing supply concerns.