Canadian markets showed mixed reactions following Prime Minister Justin Trudeau’s resignation.
The index dropped by 142.14 points to settle at 24,995.93, marking a 0.57 percent decline from its starting point for the day. Meanwhile, the Canadian dollar rose to 69.7 cents US, reaching a near three week high.
Overall, the market’s performance was uneven across sectors. Eight of the 10 major sectors on the TSX experienced declines, with consumer staples seeing the most significant drop at 1.6 percent.
Gold wrapped up the day at the US$2,640 per ounce level, while copper futures climbed to US$4.16 per pound.
Energy stocks gained modestly, reflecting higher oil prices earlier in the day. West Texas Intermediate crude futures ultimately ended Monday at the US$73.50 per barrel level, while Brent crude finished around US$76.20 per barrel.
Meanwhile, the technology sector showed resilience, buoyed by the absence of further developments on the Canadian capital gains tax proposal introduced last year. The proposed tax changes, criticized by parts of the business community, remain stalled due to Trudeau’s resignation and the subsequent suspension of parliamentary activities.
Trudeau’s decision to step down comes amid mounting pressure from within his party and declining public approval ahead of a Canadian federal election, which will be held later this year.
Trudeau confirmed that he will remain in office until the Liberal Party selects a new leader. Parliament will be suspended until March 24, pending the leadership transition.
The news places Canada’s political landscape in limbo. While some analysts view the prospect of a Conservative-led government as a catalyst for more business-friendly policies, others see the interim period as a source of risk.
Trudeau was elected to head the party in 2013 and won the role of prime minister in 2015. His leadership has spanned nine years, during which his government prioritized climate policy, social programs and pandemic response measures.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Leave a Reply