Canada's main stock index touched a one-month low on Monday, weighed by lower oil prices, as investors eyed a federal election where Prime Minister Justin Trudeau could cling to power although he looked set to lose his bid for a majority.
At 9:46 a.m. ET (1346 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 1.27% and on course for its worst session since July.
Canadian equities were on track to snap a seven-month winning streak in September as domestic uncertainty related to the federal election adds to jitters from falling commodity prices and signs of a slowdown in global growth.
Trudeau, who has a minority administration, last month triggered the vote two years early as opinion polls showed him far ahead of the opposition. But he failed to maintain his big lead as unhappiness about the early call grew.
"We're all waiting for the election today in Canada but there's a lot going on ... in China with the real estate company," said Irwin Michael, portfolio manager at ABC Funds in Toronto.
TSX inches higher on energy boost
US stock indexes also tumbled more than 1%, partly on concerns about the spillover from the potential default of Chinese property developer Evergrande.
"It's a very confusing time and that's impacting the marketplace. We still believe the glass is half full, things will recover, but in the meantime we will continue to see a lot of volatility," Michael said.
The energy sector sank 3.1% as US crude prices were down 1.5% a barrel weighed by global growth worries.
Comments
Comments are closed.