Canada's main stock index futures and the Canadian dollar slipped on Monday after Prime Minister Justin Trudeau called an early election for Sept. 20 as widely expected.
The TSX/S&P Composite was lower 2.53 points by the close Friday at 20,518.07. On the week, however, the index gained 42.65 points, or 0.2%,
The Canadian dollar fell 0.25 cents to 79.63 cents U.S.
September futures dipped 0.4% Monday.
In calling for the snap election on Sunday, Trudeau said he needed a new mandate to ensure voters approved of his Liberal government's plan to recover from the pandemic.
With polls showing the governing Liberal Party well ahead of the official opposition, investors have been looking for signs Canada's next government could reduce historic levels of fiscal spending to support the economy during the pandemic, with activity already on track to make a full recovery.
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On the economic slate, Statistics Canada reported wholesale trade fell 0.8% in June, reflecting sharp declines in the building material and supplies, and machinery, equipment and supplies sub-sectors. in June.
Manufacturing sales rose 2.1% in June, mostly attributable to improved production at auto assembly plants and higher sales of petroleum and coal products.
ON BAYSTREET
The TSX Venture Exchange stayed afloat 4.3 points to 923.06. On the week, the index was 2.57 points shy of the previous Friday’s showing, or 0.28%.
ON WALLSTREET
Futures contracts tied to the major U.S. stock indexes slipped Monday after data showed Chinese economic growth slowing more than expected.
Futures for the Dow Jones Industrials withered 148 points, or 0.4%, to 35,272.
Futures for the S&P 500 fell 17.25 points, or 0.4%, to 4,445.25.
Futures for the NASDAQ Composite Index faded 58.5 points, or 0.4%, to 15,067.25.
China’s retail sales increased by 8.5% in July year-over-year, below the 11.5% forecast from economists polled by Reuters. Online sales gained just 4.4% for the month. On the manufacturing sector in the country, industrial production increased by 6.4%, below the 7.8% consensus estimate.
The country’s National Bureau of Statistics noted an impact from COVID and domestic flooding, saying the country’s “economic recovery is still unstable and uneven.”
Shares of stocks linked to a fast-recovering economy were weak in premarket trading. Shares of Caterpillar, Freeport-McMoRan and Nucor dipped.
Futures also pulled back amid talk of the Federal Reserve’s so-called taper. There’s growing support within the central bank to announce a tapering of its bond purchases in September and begin the reduction in buying a month or so after. Interviews with officials along with their public comments show growing support for a faster taper timeline than markets had expected a month ago.
Overseas, in Japan, the Nikkei 225 index dropped 1.6%, while in Hong Kong, the Hang Seng index fell 0.8%.
Oil prices capsized $1.94 to $66.49 U.S. a barrel.
Gold prices gave back $2.10 to $1,716.10 U.S. a pound.
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