TSX, Canadian dollar rise after federal election
The Toronto stock market and the loonie both ended the day higher as investors mulled Justin Trudeau's majority win in the federal election.
The S&P/TSX composite index was up 85 points at 13,842, while New York stocks turned in disappointing results.
The relatively modest movements on both indicators seem to point to a "ho-hum" reaction from investors, or perhaps a "wait and see."
The loonie dipped about 0.20 of a cent when the Liberals were declared the winners, but rebounded to be up by almost half a cent a midday on Tuesday. It faded again as oil, which remains central to the Canadian economy, took a tumble.
West Texas Intermediate crude was down 34 cents at $45.55 US a barrel.
One of Trudeau's key promises was to invest in infrastructure, running a $10 billion annual budget deficit for three years to invest in infrastructure and help stimulate Canada's economic growth.
"New subways and new infrastructure will create employment and will offset some weakness in the commodity portions of the economy," Portfolio Management Corp's Darren Sissons wrote in a note.
That may have boded well for stocks related to engineering and industry today, as the industrial index rose 1.4 per cent.
The best news for investors from Monday's vote is likely that there was a majority result for someone. Stock markets generally loathe the uncertainty that elections and minority or coalition governments represent, so the prospect of uninterrupted government for several years is a positive for Canadian stocks.
"You're not going to be worrying about them getting knocked out and having to have an election again in two years," said Colin Cieszynski, chief market strategist at CMC Markets Canada.
In addition to erasing the uncertainty related to the possibility of another election, the government's majority status also means they won't have to lean on other parties — notably the NDP — for support, Cieszynski said.
With files from CBC News