Canada’s main index sagged by the close on Monday, giving up gains accumulated on the day, while investors braced for political changes after Prime Minister Justin Trudeau said he would resign as the Liberal party leader.
The TSX moved lower 73.75 points to close Monday at 24,999.79.
The Canadian dollar hiked 0.52 cents to 69.78 cents U.S.
Calls for Trudeau to step aside have grown since December, when his closest ally Chrystia Freeland resigned as the country’s finance minister after clashing with him on issues including how to handle possible U.S. tariffs.
Separately, focus will be on the domestic employment data, scheduled to release on Friday, to gauge the Canadian economy’s health and the interest rate path of the Bank of Canada. Traders are anticipating a near-70% chance for a 25-basis-point rate cut.
The markets fell on the backs of gold issues, such as Aya Gold & Silver, down 48 cents, or 4.3%, to $10.68, while Lundin Gold sank $1.35, or 4.2%, to $30.62.
In consumer staples, Alimentation Couche-Tard was roughed up $1.75, or 2.2%, to $76.81, while Jamieson Wellness fell $1.16, or 3.2%, to $35.56.
Health-care also backed off, with Tilray off six cents, or 2.9%, to $2.03, while Sienna Senior Living handed back 26 cents, or 1.7%, to $15.38.
Energy stocks were among the few that made upward progress, as Tourmaline Oil climbed $2.37, or 3.4%, to $69.16, while Kelt Exploration gathered 19 cents, or 2.7%, to $7.29.
In tech concerns, BlackBerry moved up 52 cents, or 9.7%, to $5.86, while Shopify popped $5.80, or 3.7%, to $163.67.
Communications also scored well, with Quebecor picking up 43 cents, or 1.4%, to $31.64, while Cogeco Communications was in the green 36 cents to $69.07.
ON BAYSTREET
The TSX Venture Exchange retreated 5.1 points to 618.49.
All but three of the 12 TSX subgroups lost ground on the day, as gold dulled 2.1%, while consumer staples slipped 1.7%, and health-care lost 1.6%.
The three gainers proved to be energy, up 0.8%, while information technology and communications each eked up 0.1%.
ON WALLSTREET
The S&P 500 climbed alongside the NASDAQ Composite on Monday for back-to-back wins, as Wall Street rebounded from a losing week and chipmakers surged.
The Dow Jones Industrials retreated 25.57 points to 42,706.56.
The S&P 500 tacked on 32.91 points to 5,975.38.
The NASDAQ Composite popped 243.30 or 1.2%, to 19,864.98.
Market sentiment on Monday was also boosted by a Washington Post report saying President-elect Donald Trump’s tariff plan would be narrower than anticipated, covering only critical imports. Trump called for “universal” tariffs as high as 10%-20% during his campaign.
Ford took on 1% and General Motors shares gained less than 3%, respectively, on optimism a more restrained tariff policy from Trump wouldn’t spark a global trade war.
Investors are entering another shortened trading week – which will wrap the next of the first five January trading days – on a wobbly note and with lingering concerns about the Federal Reserve’s interest rate projections. The New York Stock Exchange will be closed Thursday to mourn the death of former President Jimmy Carter.
Prices for the 10-year Treasury dropped, raising yields to 4.61% from Thursday’s 4.60 %. Treasury prices and yields move in opposite directions.
Oil prices sat 52 cents to $73.44 U.S. a barrel.
Prices for gold declined $9.20 an ounce to $2,645.50 U.S.
