(RTTNews) - The Canadian stock market's benchmark S&P/TSX Composite Index moved higher Wednesday morning, riding on strong gains in the energy sector. A few stocks from consumer staples and industrials sectors too climbed up on selective buying support.
However, with the mood turning cautious subsequently, the market pared early gains and dropped into negative territory.
Investors digested the latest batch of economic data, and continued to follow the developments on the geopolitical front.
U.S. President Donald Trump ruled out the use of military force to take control of Greenland during his speech at the World Economic Forum in Davos, Switzerland.
"We probably won't get anything unless I decide to use excessive strength and force, where we would be, frankly, unstoppable. But I won't do that. Okay?" Trump said. "Now everyone's saying, 'Oh, good.' That's probably the biggest statement I made, because people thought I would use force," he continued. "I don't have to use force. I don't want to use force. I won't use force."
The S&P/TSX Composite Index, which climbed to 33,015.81 earlier in the session, was down 11.44 points or 0.03% at 32,738.84 a few minutes past noon.
The Energy Capped Index climbed 2.7%. Vermilion Energy, Canadian Natural Resources, Arc Resources, Ces Energy Solutions Corp., Athabasca Oil Corp., Tourmaline Oil Corp, Imperial Oil, Cenovus Energy and Enerflex gained 3 to 4.2%.
Consumer staples stock Alimentation Couche-Tard moved up 2.7%. Metro Inc., Loblaw and The NorthWest Company posted moderate gains.
Among industrials stocks, Gfl Environmental surged 5.1%. Air Canada climbed up 3.5%. Ats Corp., Tfi International, Canadian National Railway, Canadian Pacific Kansas City, Waste Connections and Exchange Income Corp. gained 1 to 2.3%.
Technology stock Dye & Durham tanked more than 10%. Kinaxis, Descartes Systems Group and Shopify lost 4.3%, 4.1% and 3.7%, respectively.
Docebo, Sangoma Technologies, Firan Technology Group, Lightspeed Commerce and BlackBerry lost 1 to 3%.
Data from Statistics Canada showed producer prices in Canada fell 0.6% month over month in December 2025, the steepest decline in seven months, following an upwardly revised 1.1% increase in November.
On a year-on-year basis, producer prices increased 4.9% in December, easing from a 5.9% rise in the previous month.
Canada's Raw Materials Price Index increased 0.5% month-on-month in December 2025, following a 0.3% gain in November, and countering expectations for a 0.5% decrease. Commodity prices in Canada decreased to 6.4% (year-over-year) in December from 7.2% percent in November.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
