Canada’s main stock index advanced on Tuesday, buoyed by rising crude oil prices, as cautious investors awaited the results of the US presidential election. Although it may take several days to determine the final outcome, attention is particularly focused on key battleground states like Georgia, North Carolina, Pennsylvania, Michigan, Arizona, Wisconsin, and Nevada. Given that the United States is Canada’s largest trading partner, the election results could significantly influence the Canadian economy, making it a point of keen interest for local investors.
US markets saw a significant uptick on in anticipation of the election. According to the latest NBC News poll, the race appears to be extremely close between former President Donald Trump and Vice President Kamala Harris. Investors are also closely monitoring which party will control Congress, as a sweep by either Republicans or Democrats could lead to substantial changes in spending and tax policies. The election results may greatly impact the year-end performance of stocks, but investors should prepare for potential volatility in the short term. Historical data since 1980 indicates that major stock averages typically rise from election day to the end of the year, though they often decline in the immediate session and week following the election. The uncertainty surrounding the results could further contribute to market fluctuations.
The Canadian dollar traded for 72.26 cents US compared to 71.93 cents US on Monday.
US crude futures traded $0.61 higher at US$72.08 a barrel, and the Brent contract rose $0.49 to US$75.57 a barrel.
The price of gold was up US$5.84 to US$2,743.52.
In world markets, the Nikkei was up 421.23 points to 38,474.90, the Hang Seng was up 439.45 points to 21,006.97, the FTSE was down 11.85 points to 8,172.39, and the DAX was up 108.42 points to 19,256.27.
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(Top image generated with AI)