Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Canadian stocks, dollar advance as Trudeau election win clears uncertainty

09/21/2021 | 04:24pm EDT
FILE PHOTO: A Canadian dollar coin, commonly known as the

TORONTO (Reuters) - Canada's main stock market rallied on Tuesday and the dollar edged higher against its U.S. counterpart, as the re-election of Prime Minister Justin Trudeau's Liberals reassured investors that the outlook for the economy would continue to improve.

The Toronto Stock Exchange's S&P/TSX composite index ended up 89.75 points, or 0.5%, at 20,244.29, recovering from its lowest closing level in nearly two months the day before.

It was business as usual in Canada after Trudeau fell short of winning a parliamentary majority in a tightly contested federal election, leaving him dependent again on opposition legislators to govern.

The status quo was welcomed by the market, said Sadiq Adatia, chief investment officer at BMO Asset Management.

Investors are "happy to see that the economy will continue to move forward and the reopening plans will continue to move in the direction that's already in place," Adatia said.

Gains for the TSX came as global financial markets stabilized following heavy selling on Monday. Investors were assessing the level of contagion stemming from the distress of developer China Evergrande and awaiting Wednesday's interest rate decision by the U.S. Federal Reserve.

The Canadian dollar, which has largely been on the defensive since June, was trading 0.2% higher at 1.2805 to the greenback, or 78.09 U.S. cents.

"Unlike most high-income countries, Canada is unlikely to embark on near-term fiscal consolidation," Marc Chandler, chief market strategist at Bannockburn Global Forex, said in a note.

"A policy mix of tighter monetary policy and relatively looser fiscal policy tends to be supportive of the currency."

The Liberals have pledged a substantial C$78 billion in new spending over five years, while analysts expect the Bank of Canada to further reduce its bond purchases as soon as next month.

The Canadian 10-year yield was up nearly 1 basis point at 1.232%.

(Reporting by Fergal Smith; Editing by Aurora Ellis and Peter Cooney)

By Fergal Smith

© Reuters 2021
Latest news "Economy & Forex"
09:10aFutures flat on worries over supply chain disruptions; Netflix falls
09:06aAmazon and others commit to using zero-carbon shipping fuels by 2040
09:04aVC DAILY : Early-Stage Cyber Deals Lag. Are Lofty -2-
09:04aVC DAILY : Early-Stage Cyber Deals Lag. Are Lofty Valuations the Reason?
09:02aCanada's annual inflation rate hits 4.4% in September, highest since 2003
08:53aWho will be the Bundesbank's next chief?
08:38a5G speeds up Verizon's postpaid user additions, helps raise profit view
08:38aCanadian home price growth slows to near standstill in September
08:32aBundesbank chief Weidmann quits early with one last inflation warning
08:31aSPIES AND LIES : regulators round on Credit Suisse
Latest news "Economy & Forex"