Wall Street closes in disorganized order, the TSX down

(Toronto) The Toronto Stock Exchange closed Monday’s session with a drop of more than 100 points, as market observers became aware of the surprise resignation of the federal Minister of Finance hours before she presented the statement fall economy.

“Overall, Canada was under pressure today,” says Tamsin Wilding, director and fixed income portfolio manager at Leith Wheeler Investment Advice.

“You saw it with bond yields, you saw it with currency and you saw it with the stock market as well. »

Toronto’s S&P/TSX Composite Index fell 127.09 points, or 0.50%, to 25,147.21 points.

Markets never like uncertainty, recalls M^me Wilding, and there was a lot of uncertainty Monday.

Finance Minister Chrystia Freeland left cabinet Monday morning, saying she and the prime minister disagree on the best path forward for Canada.

Markets remained “on hold” all day while awaiting the fall economic statement, which was pushed back by Ms.^me Freeland.

The company will invest $100 billion in the United States over the next four years, its CEO, Masayoshi Son, promised Monday alongside President-elect Donald Trump, a gesture that demonstrates his “confidence” in the American economy.

“But questions about the composition of the government, questions of leadership, then the calendar of Canadian elections and the question of whether they will be advanced accordingly also arise,” adds M^me Wilding.

The fall economic statement, released late Monday afternoon, revealed a deficit of 61.9 billion, much higher than the ceiling that the government had previously promised to maintain.

However, the market reaction will likely be tempered by the fact that the larger deficit is mainly due to one-off costs, including indigenous legal claims, according to Ms.^me Wilding.

M^me Wilding says as we approach 2025, uncertainty will be the theme for market observers — not only in Canada, but also in the United States with a new president taking office, and abroad also.

“We’re seeing quite unstable and quite volatile markets that don’t have a clear direction as they… await further clarification. »

Bank of Canada Governor Tiff Macklem said in a speech Monday that the central bank is preparing for a more uncertain and shock-prone future.

U.S. markets ended mixed as investors await the U.S. Federal Reserve meeting this week, at which the central bank is expected to cut interest rates for the third time this year.

In New York, the Dow Jones industrial average tumbled 110.58 points, or 0.25 percent, to 43,717.48 points, while the broader S&P 500 index rose 22.59 points, or 0. .38%, at 6,074.08 points. The NASDAQ Composite Index for its part appreciated by 247.17 points, or 1.24%, to 20,173.89 points.

Concerns about sticky U.S. inflation, including the potential inflationary impacts of President-elect Donald Trump’s tariff threats, have reduced bets on Fed rate cuts next year.

On the currency market, the Canadian dollar traded at an average rate of 70.23 US cents, down from 70.27 US cents on Friday.

On the New York Mercantile Exchange, the price of crude oil fell 53 US cents to US$70.29 per barrel, while that of natural gas fell 7 US cents to US$3.21 per million barrels. BTUs.

The price of gold fell US$5.80 to US$2,670 per ounce and copper lost 1 US cent to US$4.19 per pound.

With information from the Associated Press