EBC Markets Briefing | Loonie meanders in calendar-heavy week

The Canadian dollar held steady on Tuesday as a technology-driven market rebound boosted investor risk tolerance. Markets are bracing for the US midterm elections and central bank decisions.

Chinese industrial profits surged last month, marking their fastest growth rate since June. A massive boom in AI-driven manufacturing counteracted the drag caused by sluggish domestic consumption.

That follows a minor recovery in 2025, breaking a painful three-year streak of consecutive annual declines, which creates a powerful double-benefit for commodity markets.

The country's crude imports are currently on track to hit their highest levels since March after Beijing dipped into its commercial crude reserves for the fourth time in five months September.

Canada is projected to hit record-breaking oil production in 2026. The growth is primarily driven by its massive oil sands operations, which are on track for their 25th consecutive year of growth.

Netanyahu is reportedly pressuring the Israeli military to strike Iran. The aggressive political push comes as his far-right coalition narrowly trails in opinion polls just ahead of the national election.

EBC Financial Group analyst says the loonie has bounced back to the 50 SMA. Holding this level confirms a handle formation, targeting the currency move higher toward 1.4000 per dollar.

Asset Recap

As of market close on 26 October, among EBC major products, Lumentum Holdings shares led gains as optical stocks started to stage a recovery from the previous week's declines.

Pinterest stock plunged as traders navigate pre-earnings anxiety, macroeconomic headwinds and institutional positioning ahead of the company's third-quarter financial report.

US equities rallied, driven by a surge in AI-related stocks following Anthropic's IPO filing. This market bounce helped the Nasdaq 100 recover from two straight weeks of losses.

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EBC Financial Group Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Global Financial Collaboration or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.